Update on the Online Savings Account at Newtown Savings Bank - Nationally Available
Update 6/30/2010: The rate has fallen to 1.30% APY. Refer to the bottom of the post for the rate history.
When I first posted on the Newtown Savings Bank's U-Sweep Account in May, I was told by a bank rep that it was limited to Connecticut residents. This seemed a little strange since the savings account website looked liked it was available nationwide. I emailed the bank yesterday, and this time I was told that this U-Sweep account is available nationwide.
Refer to my May review of this U-Sweep Account for the full details. The rate is 2.30% APY on all balances as of 6/10/09, and there are no monthly service charges. On the downside, there's no guarantee to how long this rate will last.
Unlimited Withdrawals Allowed
Update 6/30/10: The U-Sweep account has been changed to the eSavings account, and like any other savings account, it has a limitation of 6 withdrawals per month. This is now stated in the bank's FAQs.
One thing that's unique about this account is that it isn't technically a savings account or a money market account. Thus, they don't limit the number of withdrawals. I was told you can do as many transfers as you would like. Federal regulations limit the number of electronic withdrawals from savings accounts or money market accounts to 6 per month.
The U-Sweep Account doesn't provide any check writing or ATM card, so the only way to make withdrawals is by ACH transfers to your linked accounts. They do provide an ACH bank-to-bank transfer service with no limit on the number of linked accounts, no limit on the number of withdrawals and no limits on the size of the ACH transfers.
Even though it isn't a savings account or a checking account, it is a deposit account that is FDIC insured. I received confirmation about this from the CSR, and it's also stated in the first FAQ.
Newton Savings Bank has been a FDIC member since 1960 (FDIC Certificate # 18199).
Other High Yield Savings Accounts
As you can see in my last weekly rate update, 2.30% is near the top for non-promo savings account rates (Note, Wilshire's savings account rate has recently fallen to 2.25%).
06/29/2010: 1.30% APY and changed to eSavings
03/16/2010: 1.40% APY
10/26/2009: 1.60% APY
06/09/2009: 2.30% APY
Oh well. Still a nice account and someday the rates will rise again!
Has high CD Rate of 2.35% 1 year
Member of FDIC