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%).

Rate History

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

Anonymous   |     |   Comment #1
How is the bank avoiding the 6 transfer limit that applies to every other bank?
Anonymous   |     |   Comment #2
My guess is this is technically a checking account, but with no checks - sort of like ING Direct's Electric Orange.
Andrew (anonymous)   |     |   Comment #3
The 6 transfer limit is only on money market accounts. Traditional savings accounts do not have the limit. Clear Sky does not have a transfer limit either as it is not an MMA.
Anonymous   |     |   Comment #4
Rate change - Newtown Savings Bank U-Sweep acct drops from 2.30% to 1.80% on 6/16/09. See pre-announcement today on FAQ below


Anonymous   |     |   Comment #5
Typical! I just sent in my application yesterday! Strange that the CS woman didn't mention this when I spoke with her...

Oh well. Still a nice account and someday the rates will rise again!
Anonymous   |     |   Comment #6
Saved by the bell. I sent an email asking if I could email the application and ID’s and was told that fax or mail were the only options available, so I printed the application and brought it to work to fax, but decided to check before I did. Now I wont bother.
Anonymous   |     |   Comment #7
6/19/2009 Pacific National Bank - Concord, Ca
Has high CD Rate of 2.35% 1 year
Member of FDIC
Anonymous   |     |   Comment #8
Rate just dropped again to 1.4%
Anonymous   |     |   Comment #9
Has to be one of the WORST sign up processes I have ever encountered. They make you fax in the app., it asks for info that you don't even have yet, with no explanation. Mine was missing a page, and nobody bothered to call me and let me know.  The small deposits they send are on different days, so all told, this process is taking me about a week.  Ridiculous.  Why can't banks just follow other ones that work?
Anonymous   |     |   Comment #10
July 2010: Still one of the highest yields at 1.15%

2.30% Online Savings Account at Newtown Savings Bank in CT - Nationally Available

Update 3/16/2010: The rate has fallen to 1.40% APY. Refer to the bottom for the rate history.

Newtown Savings Bank is offering an online savings account called U-Sweep. As of 5/21/09, the rate is 2.30% APY on all balances. It has no minimum balance requirements and no monthly fees. It also has an ACH transfer service for electronic deposits and withdrawals. One downside is that you're required to mail or fax in application forms.

Update 6/10/09: When I first posted on this the CSR stated that this account was limited to the...

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