Neighbors Bank Offers Nationally Available Savings Account

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UPDATE 5/27/2020: Neighbors Bank is no longer accepting applications for the High Yield Online Savings account.

Deal Summary: High Yield Online Savings, 1.70% APY on balances of $25k+, $25 minimum/$250k maximum deposit.

Availability: Nationwide (except in Delaware).

Missouri-based Neighbors Bank has added a nationally available High Yield Online Savings (HYOS) account to its product line. Balances of $25k+ currently earn 1.70% APY, with balances of less than $25k earning 1.00% APY. I was hoping to see some type of rate guarantee to make this new product very competitive, but there is none.

Funding and Accessing the HYOS

The initial deposit (minimum $25) must be made by either debit card or check (a check requires a mobile app download and is limited to a maximum of $10k). After the account is established, deposits can be made through remote check deposit using a mobile device, wire transfers, or online transfers (ACH). ACH transactions for a new account are limited to $10k per day, but will be increased to $250k per day and $1 million per month within two months. The hold time for an incoming ACH is between 1 and 2 business days. Unlimited external bank accounts can be linked. ACH deposits/withdrawals can be initiated from another bank without dollar limits.

Like most online savings accounts, there's no ATM/debit card or check writing available. Any withdrawals must be made through ACH or by requesting a cashier’s check.

The Truth-in-Savings disclosure and FAQs provide all kinds of useful information including,

The maximum balance allowed in your Account is $250,000. You will be precluded from adding funds to the Account once the balance reaches $250,000. Interest earned will not count towards your maximum balance allowed. If your Online Savings Account was opened prior to May 6, 2020, you will be “grandfathered” in and allowed to keep an excess of $250,000 in your account.

Compounding and crediting frequency - Interest will be compounded every month. Interest will be credited to your account every month.

Effect of closing an account - If you close your account before interest is credited, you will not receive the accrued interest.

Potential Fees

While there is no monthly maintenance fee or fees for incoming wire transfers, there are a couple of possible charges to be aware of:

  • $5 excessive transaction fee for each withdrawal in excess of six per statement cycle.
  • $2 for each copy of a statement requested.
  • $20 for an outgoing wire and $1 per telephone transfer.

Beneficiaries

Unlimited beneficiaries can be named, but must be added after the High Yield Online Savings account is opened, using Neighbors Bank’s Online Banking platform. Social Security numbers are required for all beneficiaries and percentages can be assigned.

Availability

Headquartered in Columbia, Missouri, Neighbors Bank describes itself as “primarily an online bank with only one physical location in Missouri.” Citizens and legal permanent residents of the United States, 18 years or older, with a valid Social Security number and a U.S. physical street address are eligible to open an account. (The fine print on the landing page states “Not available in Delaware.”)

Opening a High Yield Online Savings account can be done online. According to the FAQs page (and CSR), there should be no hard credit pull that can ding your score.

Why do you ask personal questions to verify my application?

    This won't impact your credit score

This is a small bank with only one branch, 49 employees, and only $31.6M in assets, but Customer Support is available 24/7, with a live CSR available at all times. It's quite possible the Bank may quickly reach its deposit goals and then lower the HYOS rate to an uncompetitive level. Caveat emptor.

Bank Overview

Neighbors Bank has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 0.42% (excellent) based on December 31, 2019 data. In the past year, the Bank increased its total non-brokered deposits by $4.15 million, an excellent annual growth rate of 18.37%. Please refer to our financial overview of Neighbors Bank (FDIC Certificate # 16247) for more details.

Neighbors Bank was established in 1945 as the Clarence State Bank, with a market area covering three northeast Missouri counties. Owned and operated by the Schoonover family for over 70 years, the Bank reorganized in 2016, joining the Columbia, Missouri-based bank holding company, Columbia Bancshares, Inc. The “Neighbors” rebrand occurred in 2018.

How the High Yield Online Savings Compares

When compared to the nationally available Savings Accounts tracked by DepositAccounts.com, Neighbor’s Bank’s High Yield Online Savings APY currently ranks second, regardless of minimum balance requirments.

Interest RateAccount NameCredit Union/Bank
1.75% APYOnline Savings ($1k min/$3m max)First Foundation Bank
1.70% APYHigh Yield Online Savings ($25k min/$250k max)Neighbors Bank
1.60% APYHigh Yield Online Savings ($100 min/no max)Vio Bank

The above rates are accurate as of 5/13/2020.

To search for the best Savings Account, both nationwide and state specific, please refer to DepositAccounts.com’s Savings Account Rates page.

Related Pages: Ottumwa savings accounts, savings accounts, nationwide deals, Internet banks

Comments
Margaritta
  |     |   Comment #1
Like most of the banks lately, the moment you are all set and transfer substantial amount of money, the interest rate will go down the drain and like most of us, we will chase another loser over and over again.
CD GUY
  |     |   Comment #2
Do any of these banks guarantee the rate for 6 months or a year?
GreenDream
  |     |   Comment #3
I don't know of any banks currently offering guarantees of that length. Certainly not any with top tier rates.
Rickny
  |     |   Comment #4
The max 10k limit to open (via check or debit card via banks app) and their after for 2 months is a non starter for me.
Mike
  |     |   Comment #5
Rickny, This is done on purpose, after 2-3 months the rate will be 1% and they know you will leave them at once.
Predatory Depositor
  |     |   Comment #6
I assume the $10k limit only applies to transfers initiated at Neighbors Bank and not to transactions initiated through another bank.

If true, that needed to be a deal-breaker.
#7 - This comment has been removed for violating our comment policy.
zz
  |     |   Comment #8
As stated above: " Unlimited external bank accounts can be linked. ACH deposits/withdrawals can be initiated from another bank without dollar limits."
Sue
  |     |   Comment #9
zz, money magazine had some numbers few months ago about the ratios of accounts per persons:
60 millions have no bank accounts, 155 millions have only one account, 90 millions have 2 accounts and only 1 million people have 3+ bank accounts, the rest have only Credit union accounts (no bank accounts).
GreenDream
  |     |   Comment #11
Along those lines, GoBankingrates did a survey on number of banks people have accounts with (didn't mention credit unions, so not sure if it included those in it's definition of "banks" or was exclusive of CUs) and found that 50% of Americans with bank accounts have accounts at 1 bank, 28% at 2 banks, 11% at 3 banks, 4% at 4 banks and 7% and 5+ banks, I suspect a survey of just DA readers would have higher %s for the multiple banks choices and a lower % for the 1 bank option.
redfarm
  |     |   Comment #10
"The initial deposit (minimum $25) must be made by either debit card or check (a check requires a mobile app download and is limited to a maximum of $10k)." I was informed by email from customer service that "If funding your account through ACH, you will receive an email in the next few days to verify your micro deposits and complete the funding process." And the bank's initial ACH limit - originating with them - is $50,000 which you may request be raised higher.

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