Beach Business Bank continues to offer a very competitive savings account. I first reported on this account in June 2009 when the rate was 2.50% APY. The rate has fallen, but it's still very competitive at 1.50% APY on balances of at least $10K. The rate falls to 1% APY on balances under $10K. There are no monthly fees. This savings account isn't listed at the bank's website. A reader has kept me up-to-date on this account, and I just called the bank (866-862-3878) yesterday for additional details.
Please refer to my June 2009 review of this savings account for more details. You may be able to open this account by mail, but this policy often changes at small banks. Since the rate isn't better than other nationwide alternatives, it's really more of a deal for those who prefer to bank locally.
Branches are located in the California cities of Manhattan Beach, Long Beach and Costa Mesa.
The bank's ratings for safety and soundness are a little weak: 3 stars (adequate) at BauerFinancial, 2 stars (below peer group) at Bankrate.com and an overall health score of 4 out of 5 at DepositAccounts.com (see our Beach Business Bank financial overview). These ratings are based on 3/31/10 data except for Bankrate which is based on 12/31/09 data. The bank has been a FDIC member since 2004 (FDIC Certificate # 57678).
Thanks to the reader who emailed me the update on this savings account.