DA reader, RichReg, was the first to break the news in a Forum post:
I think we have a new leader in Online Savings ...
About two weeks ago, New York-based My Banking Direct became the first nationally available savings account offering a rate of 2.00% (or higher) since March 2020. Currently earning 2.20%, the High Yield Savings (HYS) account continues to be the rate leader for nationally available savings account. The HYS can be opened with a $500 minimum deposit.
While the 2.20% APY currently applies to all balances, the High Yield Savings landing page does show three tier levels, which might suggest a possibility of tiered rates in the future.
- $1.00 – $9,999.99
- $10,000.00 – $49,999.99
- $50,000.00 and above
There are no monthly or maintenance fees associated with the High Yield Savings account. A minimum $1 balance of must be maintained to earned that stated APY. CSR stated that an ATM card will be issued upon request. While the opening deposit must be made through an ACH transfer, additional deposits can also be made using the ATM card. Withdrawals can be made using the ATM card or through ACH transfer. If a High Yield Savings account is closed using the NYCB Online banking platform, a cashier’s check will be issued to the address on file. If a High Yield Savings account is closed within six months of opening, an early closure fee of $30 will be assessed.
This is the sixth rate increase since the High Yield Savings account was unveiled in February 2022, with a total of 150 bps added between late March and last week. In my July 16, 2022 blog post, I noted that My Banking Direct, unlike many internet banks, was not offering the same (or nearly the same) APY on their savings and money market accounts. The My Banking Direct Money Market was earning a less than mediocre 0.25% APY two weeks ago; as of this weekend, the Money Market is no longer listed on the My Banking Direct’s website. Perhaps My Banking Direct will unveil a new money market account in the future.
In the past, outbound ACH transfer initiated from My Banking Direct were limited to $5k per day and $20k over rolling 30 days. Such low ACH levels are always a point of contention. According to CSR, the transfer limits have improved: $50k per day and $200k over a rolling 30 calendar day period. CSR also stated that newly opened accounts are no longer subject to stringent transfer limits.
That being said, the improved ACH limits don’t necessarily meet the needs of everyone. As DA reader, Jarlath, stated in a March 2022 Review,
The daily external transfer rate is only 50k. And, monthly is 200k. While that may be fine for some, that is a deal-breaker for me. This is especially true as most of the good online banks are significantly higher.
The 12 month CD has a good rate of 2.50% APY, but the CD’s intrinsic value is enhanced by its add-on capabilities.
For complete details about the 12-month CD, please refer to the My Direct Banking July 16 blog post.
Headquartered in Westbury, New York (Long Island), My Banking Direct is an online division of New York Community Bank and offers its product line to U.S. citizens/residents aliens, 18 years or older, who have a valid Social Security number or Individual Taxpayer Identification number.
As My Banking Direct is an internet bank, opening a High Yield Savings account can only be done online. CSR stated that if the High Yield Savings account is going to be a joint account, “all joint account holders should be available to validate their personal information” during the online application process.
As an internet division of New York Community Bank (NYCB), My Banking Direct operates under NYCB’s FDIC Certificate and shares its financial history.
My Banking Direct/NYCB, has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 0.86% (excellent) based on March 31, 2022 data. In the past year, the Bank’s total non-brokered deposits have increased by $4.4 billion, an excellent annual growth rate of 15.28% APY. Please refer to our financial overview of My Banking Direct/NYCB (FDIC Certificate # 16022) for more details.
My Banking Direct is described as a “service” of Long Island-based New York Community Bank. The bank was established in 1859 as Queens County Savings Bank and remained so for over 140 years. In 2001, the New York Community Bank rebrand occurred with the headquarters moving from New York City to Westbury (Long Island). Between 2001 and 2018, eight banks in four states were acquired, with New York Commercial Bank being the most recent acquisition. New York Community Bank is currently the seventh largest bank headquartered in New York, with assets of nearly $61 billion and more than 711,000 customer accounts.
How the High Yield Savings Compare
When compared to 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 MyBanking Direct High Yield Savings APY ranks second.
The above information and rates are accurate as of 8/1/2022.