Bank5 Connect has raised the rate on its High-Interest Savings Account to 2.05% APY. Yesterday’s addition of 115 bps gives the High-Interest Savings Account its highest APY since Bank5 Connect opened its virtual doors in 2013.
While a $100 minimum balance is required to earn the stated APY, the account can be opened with as little as $10. The High-Interest Savings Account is potentially a fee-free account, but
there is a $1 per statement, per month fee for Bank5 Connect Checking and Savings accounts that receive statements through U.S. Mail. Checking and Savings accounts that receive eStatements will not incur a fee.
The High-Interest Savings FAQs provide a comprehensive list of things you need to know, including
- Funds can be withdrawn through online transfer, telephone transfer, check request, and a Bank5 Connect Visa Debit Card linked to the High-Interest Savings Account.
- There is a $10 fee for each transaction that exceeds the allotted six per month.*
- External transfers to accounts at other banks can only be done through a Connect Checking account; no external transfers from the High-Interest Savings Account are permitted.
*While some other banks/credit unions will permit three months of excessive transactions before the account is closed, according to the Overview page,
If you exceed the transfer limitations set forth above in any statement period, your account will be charged a $10 fee for each item in excess of the six, and be subject to closure by the financial institution.
Depositors’ Insurance Fund
In addition to FDIC insurance, Bank5 Connect offers Depositors’ Insurance Fund to all its depositors. According to the Insurance and Your Finances page,
The Depositors’ Insurance Fund (DIF) was established by the Massachusetts legislature in 1934, and at the time the fund was created, it was as an alternative to the FDIC. In fact, Massachusetts savings banks, by state law, were not allowed to join the FDIC.
In 1956, the law was eventually changed to allow Massachusetts savings banks to join the FDIC. For those that did, the DIF became known as an excess deposit insurer, meaning they insured deposits in excess of the FDIC limit. By 1986, all DIF member banks had joined the FDIC, so since then, they've been solely an excess deposit insurer.
The DIF insures all deposits above the FDIC limit in Massachusetts savings banks, and there's no dollar limit to the DIF’s insurance coverage, so they cover everything above the FDIC limit of $250,000.
Bank5 Connect is an internet division of BankFive, which is based in Massachusetts. Through its online application, Bank5 Connect offers its product line to all U.S. citizens and resident aliens, 18 years or older, with the exception of Massachusetts and Rhode Island residents.
Bank5 Connect's online application re-directs residents of Massachusetts and Rhode Island to BankFive's online application. While BankFive offers the same types of products, the rates are substantially lower, e.g., BankFive’s eAccess Savings account currently earns 0.25% APY.
Beneficiaries cannot be designated on the online application. According to CSR,
You cannot name a beneficiary on the application, but you can request the
form once the account is opened. It would need to be notarized and returned to us.
The first page of the online application states, "You''ll need ... something to fund your new account (credit card, debit card, checking account, or savings account)." Although the maximum credit card funding limit is $100, it is certainly large enough to open a High-Interest Savings Account. Funding can also be done through ACH (maximum $500k) or by mailing a check.
As an online division of BankFive, Bank5 Connect operates under BankFive’s FDIC Certificate and shares its financial history.
Bank5 Connect/BankFive has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 2.01% (excellent), based on March 31, 2018 data. The Bank has an above average capitalization level (9.84%), the result of holding $888.14 million in assets, with $87.37 million in equity. Please refer to our financial overview of Bank5 Connect/BankFive (FDIC Certificate # 23286) for more details.
BankFive was founded in 1855 as the Fall River Five Cents Savings Bank, one of the first Five Cent Savings Banks in America. The “Five Cent” moniker was chosen because these banks required only a 5¢ deposit to open an account. BankFive is currently the 43rd largest bank headquartered in Massachusetts, with deposits in excess of $765 million and more than 87,700 customer accounts.
How the High-Interest Savings Account Compares
Since Bank5 Connect’s product line is offered in 48 states, I’ve opted to use nationally available savings accounts in this comparison. That being said, when compared to the Savings Accounts tracked by DepositAccounts.com that are available nationwide, Bank5 Connect’s High-Interest Savings Account APY currently shares the top spot with Salem Five Direct’s eOne Savings APY.
The above rates are accurate as of 7/17/2018.
To search for the best Savings Account rates, both nationwide and state specific, please refer to our Savings Account Rates Table page.