Luana Savings Bank Money Market Account Is New Rate Leader

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Availability: Money Market, 1.56% APY ($750k+), 1.51% APY ($250k+), 1.46% APY ($100k+), 1.36% APY ($50k+), 1.26% APY ($1+), $2.5k minimum opening deposit.

Availability: Nationwide

Barring any unanticipated major rate changes, next week’s Liquid Bank Account Rates summary will feature a new top-rate money market. Following a substantial 35 bps increase, the Luana Savings Bank Money Market now has five very competitive rate tiers.

As stated on the Money Market landing page,

  • $2,500 Minimum Deposit to Open Account
  • $2,500 Minimum Daily Balance (to avoid $10/mo fee)
  • Up to 6 withdrawals, transfers, or checks per statement cycle
  • Variable Interest Rate (traditionally has paid higher rate of return than NOW account)
  • Interest Calculated on Daily Balance
  • Interest Paid and Compounded Monthly

According to CSR, paper checks are available, but there is no ATM/debit card associated with the Money Market account. There is a $10 fee for each withdrawal transaction over the six allowed.

ACH transfers initiated by Luana (using the online banking platform) are limited to $3k incoming and $2k outgoing on a daily basis. An unlimited dollar amount outgoing ACH can be initiated by Luana if a voided check from the receiving external bank is provided to Luana. According to CSR, the voided check is a security measure, ensuring the funds are transferred to the correct external account. There is a $5 fee for this type of ACH.

Luana does not place any restrictions on ACH transfers that are initiated from an external bank

Availability

Headquartered in Luana in northeast Iowa, Luana Savings Bank offers its product line nationwide to U.S. citizens and resident aliens (18 years or older) who have a valid Social Security number or Tax Identification number.

The ”Apply Now” button on the Money Market account landing page leads to an application of sorts. It's more like a "Contact Me" form that captures basic personal information.

Thank-you for your interest in an account with Luana Savings Bank! Please submit the form below (which is secured) and we'll contact you within one business day. All forms are checked by a human; if you're not an existing customer, Federal Law requires us to obtain proof of your identity.

Opening a Money Market account (and any other type of account) can also be done at any of the six Iowa branches located in Clive, Luana, New Hampton, Norwalk, Ossian, and Polk City.

Bank Overview

Luana Savings Bank has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 0.06% (excellent), based on March 31, 2022 data. In the past year, Luana Savings Bank has increased its total non-brokered deposits by $481.98 million, an excellent annual growth rate of 99.41%. Please refer to our financial overview of Luana Savings Bank (FDIC Certificate # 253) for more details.

Founded in 1908, Luana Savings Bank is currently the tenth largest bank in Iowa, with assets in excess of $1.9 billion. At first glance, Luana’s logo seemed to be six abstract lines. The meaning of the logo became clear when I read that Luana is the largest agricultural lender in Northeast Iowa and among the largest in Iowa: those golden lines represent a sheaf of wheat.

Luana’s About Us page states some of the bank’s recent accomplishments.

  • $645 Million in Single Family Home Originations in 2020
  • $346 Million - Record Home Loan Originations in the first 6 months of 2021
  • 18.20% Return on Equity
  • >$2.1 Billion of Loans Serviced
  • Top 100 Farm Lenders Nationally as reported by American Banker's Association
  • Top 1% of Most Efficient Banks Nationally as ranked by Bauer Financial
  • How the Money Market Compares

    When compared to nationally available Money Market Accounts and Savings Accounts tracked by DepositAccounts.com, the Luana Savings Bank Money Market top-tier rate currently ranks first, regardless of minimum deposit requirements.

    APYAccount NameCredit Union/Bank
    1.56%Money Market ($750k min)Luana Savings Bank
    1.51%Money Market ($250k min)Luana Savings Bank
    1.46%Money Market ($100k min)Luana Savings Bank
    1.36%Money Market ($50k min)Luana Savings Bank
    1.26%Money Market ($1 min)Luana Savings Bank
    1.26%High Yield Savings ($1 min)TAB Bank
    1.25%Bask Interest Savings Account (no min)Bask Bank
    1.17%CFG High Yield Money Market ($1k min/no max)CFG Bank
    1.15%Jumbo Money Market ($100k min)State Bank of Texas (SBT)

    The above information and rates are accurate as of 6/10/2022.

    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.

    Related Pages: Cedar Rapids money market accounts, Des Moines money market accounts, money market accounts, nationwide deals

    Comments
    enduser
      |     |   Comment #1
    $2,500 Minimum Daily Balance (to avoid $10/mo fee)

    I always viewed a savings account as a safe haven for money to build without stipulations. It never ceases to amaze me how banks like this one have somehow found a way to hit savers with fees for the most ridiculous of reasons. I can see a fee if you exceed the antiquated 6 withdraw limit but a fee for not maintaining a certain minimum balance, is beyond ridiculous. Why have a $1 minimum but then hit the customer with a $10 fee. Unacceptable, I will take my funds elsewhere without these bs policies.
    GregoryG
      |     |   Comment #4
    Except this is for a money market, not a savings account. It appears they have a savings account with no monthly fee.
    remmymo
      |     |   Comment #2
    Sounds good but should this article be of concern (there was another on April 2022 that I don't have access to, see link below 1st link)
    https://www.google.com/amp/s/who13.com/news/iowas-luana-savings-bank-receives-cease-and-desist-order-from-federal-regulators/amp/

    More current article
    https://www.desmoinesregister.com/restricted/?return=https%3A%2F%2Fwww.desmoinesregister.com%2Fstory%2Fmoney%2Fbusiness%2F2022%2F04%2F25%2Fregulators-concerns-luana-savings-bank-iowa-loans-before-judge-fdic%2F7403936001%2F
    GregoryG
      |     |   Comment #5
    Nice read..  That might explain why they are offering these higher rates..feds say they need more retail accounts. No better way to get more than to offer higher interest rates.  Looks like this bank might be in trouble as rates rise.
    P_D
      |     |   Comment #3
    In the last round of rate increases I remember some mid 2%s liquid accounts that came with rate guarantees I believe were as long as 18 or 24 months. I did well with those on my liquid accounts.  Have not seen anything close to that yet. I've seen only one rate guarantee so far in this round (although I may have missed some because liquid accounts are not on my radar at this time), the rate was not even competitive at the then market rate and the guarantee period was anemic. And it was clearly of little value since it was obvious at the time that rates would soon be higher everywhere.

    I have toyed with rate chasing on liquid accounts in the past. But there are too many pitfalls. Without a rate guarantee there is nothing from stopping them from lowering the rate the day your funds arrive and then you have to move the funds all over again. And even if they keep the rate, it may soon be obsolete.  Especially with the red flags this bank has with regulators going on now, that is a legitimate concern. They are potentially unscrupulous (but still entitled to their day in court so I use the word "potentially"). And if you are always opening new accounts to go with the latest fad rate, and the FIs do a hard pull, you dinged your credit for 2 years for nothing. If you keep repeating that, you can really hurt your score with no guarantee of anything.

    I don't think you can draw any conclusions yet because the pressure for deposits at the FIs still isn't hot enough. But so far, rate guarantees seem to be reduced on this round of increases and the few add-ons I have seen are at very low conservative rates. You could attribute it to the FIs "learning a lesson" in the last round, but I don't think the game is over yet. If the competition gets hot enough, they may not have any choice but to go to guarantees and add-ons if they want to stand out.

    In the meantime, no rate chasing on liquid accounts for me at least without rate guarantees. In my case it's not a profitable strategy.

    Another unusual thing about this offer is the very rare high rate tiers.  When was the last time you saw a $750k rate tier?  Personally I like having these tiers, but it is certainly not standard at banks these days.  Any time something is not standard, you should increase your due diligence to understand why.  In this case I am confident it has to do with their regulatory battle and apparent need to attract retail deposits in a hurry ahead of a court battle.

    Decades ago you could actually negotiate a deposit rate if you had lots of funds to deposit.  But at some point that was either frowned upon as elitist and possibly became prohibited by regulation as offering different rates to different depositors (unfortunately) somehow became viewed as "discriminatory."                
    milty
      |     |   Comment #6
    Per CSR: open account w/ either check or wire transfer (no charge for wire IN), can use external ACH after opening, $25 fee if closed within 1st 3 months, and joint ownership and beneficiaries allowed
    obi
      |     |   Comment #8
    I tried to open this online. After getting in all the personal information it had a CSR call me. He said to complete it I would a notorized document sent in, and that the initial deposit couldn't be by ACH. I gave up, if its this hard to open, I can imagine getting money our or closing would be tough. It may be fine for locals, but for me out of state this is not worth it.
    deplorable_1
      |     |   Comment #9
    At first glance this account looks interesting due to the high rate for FDIC insured funds but the tier levels are a very high hurdle. I'm getting 1.75% in GM right notes from the first $1 with no tier levels to maintain albeit non FDIC granted. During the last rate hike cycle I was able to find a few FDIC insured accounts that did beat the non FDIC corporate debt accounts for a time so I did move funds back and forth. Long term though all this rate chasing on liquid accounts gets frustrating as most don't maintain the high rate for long.
    Luana Savings Bank Adds New Nationally Available 6-Month CD Special
    Availability: 6-month Certificate Special, 0.75% APY ($100k) and 0.65% APY ($50k).

    Availability: Nationwide

    DA readers may recognize the Luana Savings Bank (Luana) name from the bi-weekly CD Rates Summary. In the past twelve months, Fidelity and Vanguard have offered a variety of brokered CDs, mainly long-term certificates, issued by Luana.

    The rates offered on the 6-month Certificate Special are among the highest rates in the Luana Certificate product line: only the 5-year and 6-year Certificates have slightly higher rates. Like all Luana Certificates,...

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