Update 7/7/2010: The top rate has fallen to 1.50% APY.
Beach Business Bank is offering a savings account with a rate of 2.50% APY starting July 1, 2009. After July 1st, the rate may change at anytime. It's currently 2.75% APY. Minimum deposit is $10,000. Balances under $10,000 only earn 1% APY. There are no monthly service fees.
This account doesn't seem to be listed at the bank's website. A reader emailed me info on this account, and I called their toll-free number at 866-862-3878 for more details. According to the CSR, the account can be opened by mail from any state. Note, small banks often change their policy on this so please call before applying.
Some features I was told by the CSR include:
- It's a savings account and not a money market account, so there are no checks
- No ACH transfer service
- Deposits can be mailed
- Deposits and withdrawals can be done by wire transfers (free for incoming, $10 for domestic outgoing)
You should be able to also use your existing bank's ACH service for deposits and withdrawals. That would be the easiest way to move money in and out of the account if you don't live near one of their offices. The account has the normal withdrawal restrictions for savings account, no more than 6 per month.
Branches are located in Manhattan Beach and Long Beach, California.
The bank has fair ratings for safety and soundness: 3 stars (adequate) at BauerFinancial (based on 3/31/08 data) and 3 stars (performing) at Bankrate.com (based on 12/31/08 data). The bank has been a FDIC member since 2004 (FDIC Certificate # 57678).
Thanks to the reader who emailed me news of this savings account.
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