Bank Onward Boosts Bo Savings Account Rate

In October 2021, DA’s Latest Liquid Bank Account Rates Summary featured a new rate-leading savings account from a new bank: the Bo Savings account offered by Bank Onward, the new online division of ConnectOne Bank. The Bo Savings account’s inaugural 0.65% APY on all balances was raised last week to 0.80% APY, which is currently the highest APY offered on a nationally available savings account (not requiring direct deposit or limited by a small balance cap). While there is no minimum balance requirement to earn the stated APY, opening a Bo Savings account requires a minimum $250 deposit.

Since the Bo Savings account’s debut last fall, its rate has remained competitive, as has ConnectOne’s OneConnection Savings account. The OneConnection Savings account became the rate-leading nationally available savings account in early 2020, simply because its APY remained steady as other savings rates began to fall. Although the OneConnection Savings has experienced several rate decreases through the end of 2020, the APY remained stable (and competitive) in the past 12 months. The OneConnection Savings account APY was also raised by 5 bps last week.

The following is a quote from my October 2021 Bank Onward blog post.

I had hoped Bank Onward would have an easily accessible, comprehensive FAQ section and/or Truth-in-Savings disclosure on their website. Unfortunately, Bank Onward’s website (like ConnectOne’s website) is light on specific account details. The online application does provide a disclosure, but it’s 13 pages of generic information that doesn’t answer any of the questions I normally ask. I was going to call Bank Onward, but the “Contact Us” does not list a phone number or provide a Live Chat. The only option is to send a message (limited to 180 characters) and wait for the Support Team to respond. I’m still waiting.

FYI – Bank Onward’s Support Team never responded to me.

Update 4/25: I tried again using Bank Onward's "Contact Us" form to ask about designating beneficiaries. This time, a reply was received in about an hour. The reply reads as follows:

On the application you will not be able to designate individual beneficiaries. After the account is open please send us a secure message via your online banking portal for this type of request. You are able to have up to four beneficiaries.

The Fees page states there are no transfer fees, account support fees, or minimum balance fees, yet the 13-page disclosure mentions a Fee Schedule, which will be “provided separately” and “upon request.”

Here’s a sampling of what can be found in Bank Onward’s FAQs.

Can I open a Bo account in the name of a Trust or business?

No. At this time, you can not open a Bo account in the name of a Trust or a business entity.

How can I add money to my Bo savings account?

If you have a check, you can log into your Bo online banking and deposit your check in minutes using our ‘Deposit Check’ feature. You can also add money to your Bo savings account by adding an external transfer account in your Bo online banking and transfer funds.

Can I deposit checks?

Yes, you can deposit checks using the Bo mobile app.

How can I transfer money out of my Bo savings account?

You can transfer money out of your Bo Savings account by initiating an external funds transfer in your Bo online banking.

Are there transfer limits?

Yes, you may transfer up to $3,000.00 per day* and $15,000.00 per month. Keep in mind, your other financial institutions may have a different transfer limit.

Bo does not limit transfers initiated from your other financial institution.

*This is in line with ConnectOne’s policy of $3k per day for incoming and outgoing transfers.

Note: the text in italics is new since my October 2021 Bank Onward blog post.

Availability

Headquartered in Union, New Jersey, Bank Onward is an online division of ConnectOne Bank. According to the FAQs, legal U.S. residents, 18 years or older, with a valid Social Security number and a government issued ID are eligible to apply for a Bank Onward account.

Opening a Bo Savings account must be done online, as Bank Onward has no brick-and-mortar branch locations.

Bank Overview

Bank Onward is an online division of ConnectOne Bank and operates under ConnectOne Bank’s FDIC Certificate. According to Bank Onward’s website, ”Deposits received through Bo and ConnectOne Bank are combined and not separately insured for purposes of applicable FDIC deposit insurance limitations.”

Bank Onward/ConnectOne Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 6.32% (excellent) based on December 31, 2021 data. In the past year, the Bank has increased its total non-brokered deposits by $418.99 million, an excellent annual growth rate of 7.9%. Please refer to our financial overview of Bank Onward/ConnectOne Bank (FDIC Certificate # 57919) for more details.

Now in its 17^th year of operation, ConnectOne Bank was established in 2005 as the North Jersey Community Bank. Following the acquisition of Citizens Community Bank, the Bank re-branded in 2013. Between 2014 and 2020, ConnectOne Bank acquired three more New Jersey banks: Union Center National Bank (Union), Greater Hudson Bank (Bardonia), and Bank of New Jersey (Fort Lee). ConnectOne Bank is currently the seventh largest bank headquartered in New Jersey, with assets in excess of $9.1 billion and nearly 86,000 customer accounts.

How Bo Savings Compares

When compared to nationally available Savings Accounts tracked by DepositAccounts.com, that do not have direct deposit requirements are are not limited by a small balance cap, Bank Onward’s Bo Savings account’s APY currently shares the top spot with the Bask Bank Bask Interest Savings account APY.

The above information and rates are accurate as of 4/25/2022.

To search for the best rates, either nationwide or state-specific, please refer to DA’s Savings Account Rates page.