You may have read my Forum post about Nationwide Bank’s recent (and substantial) 100 bps increase on its Savings Account (1.30% APY). There are no minimum balance requirement or maximum balance cap in regards to the stated APY, but there is a minimum $25 opening deposit.
As I mentioned in the Forum post, DA has been tracking the Savings Account since 2009. While I’ve written more than 15 blog posts about Nationwide products since 2008, there’s never been an occasion to write about the Savings Account, simply because it never had a good rate. When I saw the 1.30% APY on Nationwide’s website, my first thought was, “that’s a mistake.” When I called Nationwide for confirmation, the CSR assured me that it was not an error. My next question was, “Is this a short-term promotional rate?” CSR stated that since increasing the rate on the Member Checking account to 1.15% APY about two months ago (see review), the Bank "has received a lot of good feedback, so we want the Savings account to be in line with that [Member Checking] rate."
According to the Savings Account page, there are low, or even possibly no, fees associated with this account:
$0 monthly maintenance fee when you maintain a minimum daily balance of $300 or a monthly direct deposit of $25 or more. Otherwise $3.
$0 preauthorized withdrawals up to 6 per monthly statement cycle via telephone or electronic transfers, check or ATM card transactions.
$0 non-Nationwide Bank ATM transactions up to 2 per month. Fees from the ATM owner may apply.>
$0 online statements detailing your monthly activity.
$0 money transfers with your Nationwide bank accounts and your accounts with other banks.
Nationwide Bank’s savings account rate may now be competitive, but its bank-to-bank transfer service is not. Standard transfers are limited to $5,000 per transaction and per day. The monthly limit (30 day rolling) is only $10,000. Full details are listed in the transfer section of Nationwide Bank’s online banking FAQs.
According to CSR, standard transfers take 3 to 5 business days. They do have next-day transfers, but these have even smaller limits ($2k per day). I was told there are no dollar limits when the transfers are initiated by another bank. Another option of moving your money is wire transfers. Outgoing domestic wire transfers cost $25, but there’s no charge for incoming domestic wire transfers.
Headquartered in Columbus, Ohio, Nationwide Bank is an internet bank that has no brick-and-mortar branch locations. Its entire product line is available nationwide and must be opened using the Bank’s online application.
According to Nationwide Bank’s FAQs concerning the opening of a Regular Savings account:
You’ll enter some basic information about yourself and up to 4 joint account owners. This includes address, date of birth, SSN and occupation.
We’ll ask you a few questions about how you’ll use your account(s). You can open up to 6 accounts.
You’ll make your opening deposit from one of many convenient options, including another bank account or debit card.
Beneficiaries: According to Nationwide Bank’s “How to Apply” page, you have the option to add up to 5 account beneficiaries. You do not need the person’s Social Security number; all you need is the person’s name and address. Trust accounts are also available, but you have to call to open a trust account.
Nationwide Bank has an overall health grade of "B" at DepositAccounts.com, with a Texas Ratio of 1.61% (excellent) based on March 31, 2017 data. Nationwide Bank has an average capitalization level (8.43%), the result of holding $7.19 billion in assets with $505.49 million in equity. Please refer to our financial overview of Nationwide Bank (FDIC Certificate # 30470) for more details.
While Nationwide Bank was established 19 years ago as the Nationwide Trust Company, its roots can be traced back to Nationwide Corporation, an auto insurer for farmers in Ohio in the 1920s. The name was changed to Nationwide Bank in 2007 when the Bank began offering products to the public. Nationwide Bank is currently Ohio’s eighth largest bank with assets in excess of $7.1 billion and nearly 120,000 customer accounts throughout the country.
How the Regular Savings Account Compares
When compared to the Savings Accounts tracked by DepositAccounts.com that require a similar minimum balance and are nationally available, Nationwide Bank’s Savings Account APY currently ranks third.
The above rates are accurate as of 8/24/2017.