Deal Summary: Savings Account, 1.30% APY on all balances; Checking Account, 0.75% APY on all balances.
Internet savings account rates are rising. The latest evidence of this is from Flushing Bank which recently launched a new internet bank called BankPurely. It offers two products: an online savings account called SavingPurely and an online checking account called CheckingPurely. The savings account earns 1.30% APY on all balances. The checking account earns 0.75% APY on all balances. These rates are variable with no guaranteed period. Both accounts have no minimum balance requirement and no monthly maintenance fees.
If Flushing Bank sounds familiar, you may have heard about it from iGObanking.com. This is the first internet bank Flushing Bank launched. I first wrote about iGObanking more than 10 years ago. The internet bank continues to offer competitive rates on many of its accounts including a savings account that earns 1% APY and a money market account that earns 1.10% APY. There have been periods when these rates were low (0.25%), but in the last two years, the current rates have held. That’s a good sign for BankPurely.
Flushing Bank must have decided that a new internet bank brand was needed. BankPurely appears to be designed to attract the segment of the population concerned about “green” issues. According to BankPurely’s “Who We Are” page:
Specifically crafted for ethical consumers with greater awareness about environmental and social issues.
That doesn’t give me confidence that maintaining a top rate will be a long-term priority. I’m not sure why BankPurely will do any better than iGObanking in maintaining competitive rates. Nevertheless, new internet banks often maintain their introductory rates for many months, and with future Fed rate hikes likely, BankPurely may be able to maintain the 1.30% APY for even longer.
Flushing Bank has leveraged the digital banking platform of iGObanking. When you apply for the BankPurely account, you go through the online application of iGObanking.com.
Bank’s Electronic Transfer Service
An important feature of an internet bank is its bank-to-bank ACH transfer service. BankPurely’s documentation and FAQs didn’t provide many details of this service. The only detail I could find was listed in the FAQ on how to make deposits. One of the answers was transfer funds through its ACH transfer service. Like most of these services, you first have to establish a link to an external account. According to the FAQ, “there is no limit to the number of verified accounts you can set up to make deposits into your SavingPurely account.”
I had to call BankPurely’s customer service to learn more details of their ACH Transfer service. I did confirm that the service is free. According to the CSR, transfers will take 3 to 4 business days, and as is typical, there are dollar limits. Below are the dollar limits that I was told by the CSR:
- $15k limit outgoing per transfer
- $50k limit outgoing per 30 day rolling period
- The $15k outgoing limit may be increased to $100k on a request basis
- $100k limit incoming per transfer
As is typical for most banks, they don’t apply dollar limits to transfers initiated by you from another financial institution.
According to the CSR, the online application allows for you to designate up to two payable-on-death beneficiaries. Once the account is opened, you can send a request to add additional beneficiaries.
The CSR said that accounts cannot be in the name of a trust. However, trusts can be named as a beneficiary.
Features of the Checking and Savings Accounts
Customers of either the checking or savings account have ATM access (surcharge-free use of ATMs in the Allpoint network). They also have online and mobile app access with mobile check deposit. Only e-statements are provided.
The checking account does not allow paper checks. When checks have to be written, free online bill pay can be used. Also, checking account customers can be issued a free MasterCard debit card.
And here’s one of the “green” features mentioned: “One tree will be planted for every BankPurely account opened.”
BankPurely is an internet-only bank that offers it services and product line nationwide. You must be at least 18 years of age, and you must be a U.S. citizen or U.S. resident alien to open your account online.
Opening the accounts requires using BankPurely’s online application (which is based on iGObanking’s technology). In addition to the typical personal information, you’ll need the account number, routing number and name of the financial institution if you choose electronic funding. If applying for a joint or beneficiary account, you will need their Name, Social Security Number, Identification (for joint account) and Date of Birth.
BankPurely is an online division of Flushing Bank. BankPurely, iGObanking and Flushing Bank are not separately FDIC-insured banks. The FDIC coverage extended to deposit customers is that of one insured bank.
Flushing Bank/BankPurely has an overall health grade of “A” at DepositAccounts.com, with a Texas Ratio of 3.26% (excellent), based on December 31, 2016 data. In the past year, the Bank has increased its total non-brokered deposits by $189.17 million, an excellent annual growth rate of 6.49%. Please refer to our financial overview of Flushing Bank/BankPurely (FDIC Certificate # 58564) for more details.
How the Savings Account Compares
BankPurely’s savings account is currently the rate leader for nationally available savings accounts. The previous two leaders were PurePoint Financial and Dollar Savings Direct. Both are tied with a 1.25% APY. Below is the listing of the top four nationally available savings accounts:
The above rates are accurate as of 5/2/2017.