New Online Savings Account at Bank Provident Online - 3.30% Until 2009


Update 10/03/09: The savings account rate has fallen from 1.45% to 1.35% APY.

Bank Provident Online is a new internet division of The Provident Bank of Massachusetts. They just came out with a no-fee online savings account with a yield of 3.30% APY guaranteed until 2009.

It's not the best rate, but at least they're guaranteeing it'll last for next 5 months. It looks like it has some nice ACH transfer features. I don't know how fast the ACH transfers are. If it's fast, it could be a nice online bank. Another plus for those with large balances is that they're insured with both FDIC and DIF. I have more info on DIF below.

Here's a summary of the main features that were mentioned in the FAQ page, in the disclosure pdf, and from the CSR:
  • $10 minimum to open and minimum balance to obtain interest
  • Interest compounded and credited to account monthly
  • No ATM card is available
  • Bank will not access your credit report (assume this means no hard pull)
  • Can't mail deposits - only electronic funds transfers accepted
  • trial test deposits are used to verify linked accounts
  • No limit on the number of links that can be set up
  • Can link to any type of account excluding some brokerage or investment accounts
  • Typical 6 per month withdrawal limit. No limit on deposits
  • Initial deposit limited to $1 million (according to CSR)
  • Subsequent transfers limited to $500K/day (according to CSR)

Being a Massachusetts-chartered savings banks, The Provident Bank is insured with Depositors Insurance Fund (DIF) which is a private, industry-sponsored insurance fund that insures all deposits above FDIC limits. More info on DIF is available at the DIF home page.

Another online bank with DIF is Salem Five Direct which currently offers a yield of 3.50% APY on balances from $100K to $1 million on its online checking account (see post).

You can review the FDIC information on The Provident Bank at this FDIC page (Certificate # 90141). The FDIC page only lists the main bank's URL ( So I called the number listed at and confirmed that is in fact a division of The Provident Bank.

Thanks to the reader who mentioned this new savings account in the Finding the Best Deals post.

Rate History:
10/03/09: 1.35% APY
09/05/09: 1.45% APY
08/??/09: 1.55% APY
08/01/09: 1.65% APY
??/??/09: 1.75% APY
04/15/09: 2.00% APY
03/21/09: 2.15% APY
03/04/09: 2.40% APY
02/21/09: 2.65% APY
??/??/09: 2.80% APY
Related Pages: Bank Provident Online, Boston, savings account

Anonymous   |     |   Comment #1
Hi Banking Guy

I just spoke to Provident Online CSR. She told me that that only US Citizens or resident aliens (Green Card Holders) are eligible for opening the savings account. You may want to mention that in your post.

Thank you
Anonymous   |     |   Comment #2
now 2.65%