- Christmas / Vacation Club Account: 6.50% APY, 168-day term, $5K maximum contract amount
- Installment Club Savings: 4.60% APY, 12- to 36-month term, $25K maximum contract amount
- Education Club Savings: 5.50%, 6.50%, 7.00% APY for terms of 5, 10, 15 years, $100K maximum contract amount
Installment savings accounts require equal monthly deposits from the bank's checking account to the savings account. Like a CD, the rate is fixed during the term. Also like a CD, there is an early withdrawal penalty. If you open one of these, it's best if you can set up automatic transfers from a high yield savings account. You would want to make sure you maximize the interest of the money before the transfers are made into the installment savings account. If you have too much sitting in a checking account before the money is transferred, you'll lose out on the interest.
NewBank branches are located at Flushing, New York and Fort Lee, New Jersey.
The bank has strong ratings for safety and soundness: 5 stars (superior) at BauerFinancial and 4 stars (sound) at Bankrate. Both ratings are based on 12/31/08 financial data. The bank was recently established in 2006. It's a member FDIC (FDIC Certificate # 58203).
Other Installment Savings Accounts
These installment savings accounts seem to be popular among Korean American banks. In the last couple of months, I've posted on several with high rates. Similar to NewBank, most are located around California and New York and require a branch visit. However, Wilshire State Bank is offering one that is available nationwide via an online application. It has rates up to 5.12% APY for a contract term of 3 years (see post). To find other installment savings accounts, refer to my Installment Savings Accoung Page.