BrioDirect Boosts Nationally Available High-Yield Savings Rate

In 2019, DA reader, redwilli1, asked “Has anyone heard of BrioDirect HYS 2.46% APY?”

At that time, BrioDirect, the new online division of Sterling National Bank (now Webster Bank), had unveiled its product line, which consists of the High-Yield Savings and two short-term CDs. While the product line has expanded to include a Money Market account and a total of twelve CDs, the rates have been mediocre following initial good (but not great) APYs.

BrioDirect recently raised the rates on the High-Yield Savings (HYS), High-Yield Money Market, and three CDs, with the HYS offering the most competitive rate.

If you click on “View Details” in the above chart, you’ll see that the HYS maintained its initial 2.46% APY for only two months before beginning a long descent in rate oblivion. Last week’s addition of 60 bps was the HYS’ first rate increase ever.

High-Yield Savings

• 1.00% APY on balances of $25 and above.
• A minimum collected daily balance of $25 required to earn stated APY.
• $25 minimum opening deposit.
• No monthly maintenance fee.
• Free online statements, with a $5 fee for paper statements.

Funding and ACH Transfers

• BrioDirect accounts can be fund through ACH transfer, wire transfer, or check.
• There is no limit on the number of external banks that can be linked.
• Once an account is established, BrioDirect allows you to make withdrawals and deposits initiated from an external bank.

As stated in the FAQs,

Standard outbound limits: Clients are eligible for standard outbound transfers up to $75,000 that are completed within 3 business days (provided that funds are available). These transfers must be submitted by 10PM ET/1AM PT for current day processing. Transfers submitted after this time are processed on the following business day. For standard outbound transfers, the client must wait until an outstanding transfer(s) that exceeds $75,000 has settled before another transfer can be made and the monthly limit on outbound transactions is $250,000. You may be eligible to transfer additional amounts in excess of these limits by calling our contact center at 877.369.BRIO.

Beneficiary Information

• Unlimited beneficiaries can be named, with equal shares assigned.
• Social Security numbers are required, along with DOB, address, and profession.
• Naming beneficiaries cannot be done using the online application. A Beneficiary form will be mailed to you and needs to be returned notarized and “in its original form” via snail mail.

Availability

Headquartered in Montebello, New York, BrioDirect offers its product line nationwide to US citizens and resident aliens (18 years or older), who have a US mailing address and a valid Social Security number, through an online application.

At this time, only single and joint accounts are available, with no trusts permitted.

Opening a High-Yield Savings account can only be done online.

As stated on the first page of the online application,

Do not use the back button in your browser to navigate this application. You will be able to save your application along the way, use the 'Save Now & Finish Later' button found in the menu in the upper right corner of each page.

Bank Overview

As an online division of Webster Bank, BrioDirect operates under Webster Bank’s FDIC Certificate.

As BrioDirect’s website states, “Webster Bank operates under the trade name BrioDirect. This trade name is used by, and refers to Webster Bank, a single FDIC-insured bank.”

Accounts that are opened via briodirectbanking.com and marketed by BrioDirect are Webster Bank accounts. Deposits in these accounts are made with Webster Bank. For purposes of determining how much FDIC insurance is applicable to your accounts, you need to consider not only the BrioDirect online savings, CD, or checking accounts that you maintain, but also all other accounts you maintain at Webster Bank.

BrioDirect/Webster Bank has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 2.46% (excellent), based on March 31, 2022 data. In the past year, the Bank has increased its non-brokered deposits by $26.47 billion, an excellent annual growth rate of 94.38%. Please refer to our financial overview of BrioDirect/Webster Bank (FDIC Certificate # 18221) for more details.

Almost four months ago, Sterling National Bank (the original parent bank of Brio Direct) officially became part of Connecticut-based Webster Bank. According to a February 1, 2022 press release,

Webster Financial Corporation (NYSE: WBS) ("Webster") and Sterling Bancorp ("Sterling") jointly announced today the completion of their previously announced merger, creating one of the largest commercial banks in the Northeast. The combined company is a unique financial institution, with a differentiated funding base that includes HSA Bank, as well as consumer and commercial banking businesses.

Establishing in 1870 as Bristol Savings Bank, Webster Bank is currently the largest bank headquartered in Connecticut. With more than 200 branch locations in Connecticut, Massachusetts, New York, and Rhode Island, Webster Bank currently has assets in excess of $34 billion and more than 900,000 customer accounts.

How the High-Yield Savings Account Compares

When compared to the nationally available Money Market Accounts and Savings Accounts tracked by DepositAccounts.com, that do not require large balances or direct deposit and do not have small balance caps, the BrioDirect High-Yield Savings APY currently ranks fifth. (FYI – there are a total of five nationally available savings accounts and two Money Market accounts currently earning 1.00% APY.)

The above information and rates are accurate as of 5/23/2022.

To look for the best rates on liquid bank accounts, both nationwide and state specific, please refer to our Money Market Accounts Table and Savings Accounts Table.