Update on SaveBetter - Top Rates from Ponce Bank and Sallie Mae Bank

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Deal Summary: Money Market Deposit Account (1.75% APY), 14-month No Penalty CD (2.20% APY), $1 minimum balance.

Availability: Nationwide

In the last three months, I’ve been reviewing the latest competitive money market and CD deals from the deposit platform, SaveBetter (SaveBetter.com). This week, one of SaveBetter’s partner banks, Ponce Bank, increased the rate of its Money Market Deposit Account (MMDA) by 100 bps to 1.75% APY. This is now the highest liquid account rate at SaveBetter, and it’s one of the highest rates for online savings and money market accounts in the nation.

APYMINMAXINSTITUTIONPRODUCTDETAILS
3.25%--Ponce BankMoney Market Deposit Account via SaveBetter
Rates as of December 2, 2022.

A new partner bank has just been added to SaveBetter, and it’s a bank well known to DA readers. It’s Sallie Mae Bank, and it’s offering two very competitive no-penalty CDs on SaveBetter: a 14-month No Penalty CD (2.20% APY) and 10-month No Penalty CD (1.85% APY). Sallie Mae Bank has a long history of offering a savings account, money market account and standard CDs directly to consumers from its website. However, it has never offered no-penalty CDs. Sallie Mae Bank must have felt SaveBetter would be a good way to offer no-penalty CDs.

APYMINMAXINSTITUTIONPRODUCTDETAILS
4.05%$1-Sallie Mae Bank14 Month No-Penalty CD via SaveBetter
4.00%$1-Sallie Mae Bank10 Month No-Penalty CD via SaveBetter
Rates as of December 2, 2022.

SaveBetter Platform

When I first reviewed SaveBetter in 2021, it lacked any compelling deposit products, but that has changed. SaveBetter platform is managed by Deposit Solutions LLC, a New York based company that is part of the large German financial technology company, Raisin GmbH. The SaveBetter platform allows savers to open deposit products at several partner banks under just one account. When I first reviewed SaveBetter in early 2021, there were only three partner banks. Now there are nine partner banks and one partner credit union. In addition, a few of the partners are now offering competitive rates.

You can read the details about the SaveBetter platform and the company in this updated version of my original SaveBetter review. In my opinion, SaveBetter’s main issue now is that you don’t actually hold individual deposit accounts at a partner bank. Instead, you hold a piece of a large deposit account, what’s called an “omnibus custodial deposit account.” You still have FDIC deposit coverage, but you don’t have an account number and routing number that you can use to access the account from outside the SaveBetter platform. Thus, if you have an Ally Bank account, you won’t be able to log into Ally and link your SaveBetter account. To deposit and withdraw money into and out of your SaveBetter accounts, you have to completely depend on the SaveBetter platform and its ACH transfer service.

Ponce Bank Money Market Deposit Account (MMDA) Features

Ponce Bank is one of the first three banks that partnered with SaveBetter. I first wrote about SaveBetter and Ponce Bank in February 2021. At that time, Ponce Bank was offering a High Yield Savings Account (HYSA) at SaveBetter. That made me wonder if those existing customers have been moved into this new high-yield MMDA or are they still in this HYSA, and if they are, what rate are they earning. SaveBetter does not mention the Ponce Bank HYSA, so I called SaveBetter customer service. After a few minutes on hold, I was connected to a knowledgeable CSR who informed me that those Ponce Bank HYSA customers were not moved over and they are likely earning a much lower rate (he did not have the current Ponce Bank HYSA rate available). Those Ponce Bank HYSA customers who would like to get the Ponce Bank MMDA yield will have to transfer their funds back to their linked account and apply for the MMDA.

The Ponce Bank MMDA has the same features as all the other available liquid account products from SaveBetter. Each liquid account, either High Yield Savings Account (HYSA) or MMDA, has its own Product Terms page with account details. Except for the rate and offering bank, there are essentially no differences in the product terms between the MMDAs and HYSAs that are currently listed at SaveBetter. Sometimes money market accounts have check writing capabilities, but that is not the case with the SaveBetter MMDAs. Check writing is not allowed for both SaveBetter MMDAs and HYSAs.

Currently, all the SaveBetter MMDAs and HYSAs have a minimum opening deposit of only $1, and the listed APYs apply to all balances. There are no monthly service fees. There’s also no fee for excessive withdrawals. According to the Products Terms documents, the accounts would normally be limited to six withdrawals during a monthly statement cycle. However, enforcement of this limit is suspended until further notice (The Federal Reserve allowed banks and credit unions to do this starting in 2020).

As I described above, ACH transfers to and from your other bank accounts can only be done inside the SaveBetter platform. Based on my CSR conversations, SaveBetter’s ACH service has no dollar limits on transfers. Only one link can be established. They don’t allow multiple links to multiple banks. Once the link is established, that same link can be used to transfer money into and out of any of the SaveBetter HYSAs, MMDAs and CDs that you have opened. According to the CSR, transferring funds out to the external bank typically takes three business days.

Sallie Mae Bank No Penalty CD Features

Other partner banks had offered no-penalty CDs at SaveBetter last year, but for the last several months there have been no no-penalty CDs. The Sallie Mae Bank No Penalty CDs at SaveBetter function like the standard no-penalty CD that Ally Bank started more than a decade ago. Withdrawals can only be made after 7 days from opening. There’s no loss of interest. According to the product terms, if “funds are withdrawn before the maturity date, then interest is credited through the date of withdrawal.” Only one-time full withdrawals of the CD can be done. Partial withdrawals of the CD are not allowed.

Just like any of SaveBetter CDs, the Sallie Mae No Penalty CD is funded by using the external link that connects to an existing checking or savings account at another bank or credit union. If you’re already a SaveBetter customer, you can use the same link that you already had established. When you want to close your No Penalty CD, you have to call SaveBetter customer service and request a closure. According to the CSR, funds will be transferred out via that link within three business days.

As with any of these no-penalty CDs, a longer term is always advantageous. I can’t think of a good reason to choose a shorter-term CD if that shorter-term CD has the same or lower rate. In this case, there’s no reason to choose the 10-month No Penalty CD over the 14-month No Penalty CD. If you want to access the CD in 10 months, just do an early closure of the 14-month No Penalty CD after 10 months. That’s the beauty of a no-penalty CD. You can make it have any maturity date you want (as long as it is after the first 7 days and it’s no later than the maturity date.)

More SaveBetter Account Details

For more account account details, please refer to my updated review of SaveBetter.

Availability

To be eligible to open an account through SaveBetter, you must be a U.S. citizen or U.S. resident alien with a U.S. social security number, who resides in the U.S. Also, you must have an existing deposit account that you maintain at a bank or credit union in the U.S. That deposit account will be used to fund your SaveBetter account and to receive the funds from a SaveBetter account. In the online application, you’ll need to provide the routing and account number of the funding deposit account.

The SaveBetter online application for the Ponce Bank MMDA and the Sallie Mae Bank No Penalty CDs are available at savebetter.com.

SaveBetter, Ponce Bank and Sallie Mae Bank Overview

The first SaveBetter FAQ has the best overview of SaveBetter. The following is an excerpt:

SaveBetter is not a bank. It’s a New York-based financial technology company (“Fintech” for short) that provides the digital “storefront” where banks can promote their deposit products.

SaveBetter.com is operated by SaveBetter LLC, a 100% subsidiary of Deposit Solutions LLC (Deposit Solutions). Headquartered in New York, Deposit Solutions provides a proprietary open architecture platform for deposits products. Deposit Solutions helps banks improve their deposit funding by offering national reach for their retail deposit products, and provides savers with better access, more choice and higher convenience when evaluating savings products from FDIC insured banks.

Deposit Solutions LLC is a 100% subsidiary of Raisin GmbH, a trailblazer for open banking in the deposits and investments space.

When I reviewed SaveBetter last year, they were part of Deposit Solutions. A few months after my review, Deposit Solutions and Raisin announced a merger. According to this June 2021 Reuters article:

Under the name Raisin DS, the merged company will work with around 400 banks and have a deposit volume of around 20 billion euros ($24 billion).

The deposits are held at the partner banks, and thus, the financial health of a partner banks should be considered when deciding to open an account via SaveBetter.

Ponce Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 6.14% (excellent) based on March 31, 2022 data. In the past year, Ponce Bank has increased its total non-brokered deposits by $35.75 million, an excellent annual growth rate of 3.38%. Please refer to our financial overview of Ponce Bank (FDIC Certificate # 31189) for more details.

Ponce Bank is one of the first three banks that partnered with SaveBetter in late 2020. Ponce Bank is part of Ponce Financial Group, a bank holding company that recently became a fully stock-traded company. Its 2022 Q1 earnings report was its first quarterly report as a fully publicly traded company. In its earnings report, Ponce disclosed a $8.1 million write-off due to fraudulent microloans that were originated by the fintech, Grain. This was reported in this May 2022 American Banker article. According to the article, Ponce had a solid quarter despite the problems with Grain:

Analysts who cover Ponce said issues with Grain overshadowed an otherwise solid quarter, marked by loan growth, an expanding net interest margin and excellent core credit quality. First-quarter revenue of $19.6 million increased 17% year over year, despite a steep decline in mortgage banking revenue.

The article also noted that “real estate loans made up 90% of Ponce’s $1.3 billion loan portfolio.” The press release of the earnings report included some information on Ponce Bank’s deposits. According to the press release, “Deposits were $1.18 billion at March 31, 2022, a decrease of $23.6 million, or 2.0%, from December 31, 2021.” The fall in deposits may be a reason why Ponce Bank is being aggressive on rates.

Sallie Mae Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 3.66% (excellent) based on March 31, 2022 data. In the past year, Sallie Mae Bank’s non-brokered deposits have fallen $23.63 million, resulting in an annual growth rate of -0.2%. This weakly negative deposit growth was a factor that contributed to an “A” grade rather than an “A+”. Please refer to our financial overview of Sallie Mae Bank (FDIC Certificate # 58177) for more details.

I consider Sallie Mae Bank as one of the major online banks. I first began writing about its online savings account and CDs in 2010. In 2015 I began writing about its money market account, which has a history of being more rate competitive than its savings account. It also has a history of offering competitive online CD rates.

Sallie Mae is probably best known for its student loan business. The Student Loan Marketing Association (better known as "SallieMae") opened its doors as a Government-Sponsored Enterprise (GSE), designed to support the guaranteed student loan program created by the Higher Education Act of 1965. Chartered in 2005, the internet-only Sallie Mae Bank has expanded its product line beyond student loans to include CDs, Savings Accounts, Money Market Accounts, Insurance, and Credit Cards. Sallie Mae Bank is currently the 71st largest bank in the country, with assets in excess of $28 billion.

How the Ponce Bank Money Market Deposit Account Compares

When compared to nationally available Money Market Accounts and Savings Accounts tracked by DepositAccounts.com, that do not require large balances or direct deposit and do not have small balance caps, Ponce Bank’s MMDArate currently ranks second.

The above information and rates are accurate as of 7/8/2022.

To look for the best rates on liquid bank accounts, both nationwide and state specific, please refer to our Money Market Accounts Table and Savings Accounts Table.

How the Sallie Mae Bank 14-Month No Penalty CD Compares

No-penalty CDs are somewhat rare and the longer the term, the more competitive the CD. Thus, I’ll only compare the 14-month CD. When compared to the nationally available no-penalty CDs tracked by DepositAccounts.com, Sallie Mae Bank’s 14-month No Penalty CD APY currently ranks first.

The above information and rates are accurate as of 7/8/2022.

To look for the best rates on no-penalty CDs, please refer to our No-Penalty CD Section of the biweekly liquid bank account summary.

Related Pages: New York money market accounts, money market accounts, nationwide deals, Internet banks

Comments
WheelinDealin
  |     |   Comment #1
Why doesn't SallieMae offer these no-penalty CD's direct to consumer on thier website instead of using SaveBetter?
P_D
  |     |   Comment #2
Strike One
"Deposit Solutions LLC, a New York based company that is part of the large German financial technology company, Raisin GmbH."

Strike Two
"In my opinion, SaveBetter’s main issue now is that you don’t actually hold individual deposit accounts at a partner bank. Instead, you hold a piece of a large deposit account, what’s called an “omnibus custodial deposit account.” You still have FDIC deposit coverage, but you don’t have an account number and routing number that you can use to access the account from outside the SaveBetter platform. "

Strike Three
Some of these Fintechs have been challenged by the feds bringing into question whether the accounts were in fact FDIC covered even though they claimed to be. And there may be other issues too. Anytime you have a middleman the chance of problems grows exponentially.

For me FDIC/NCUA and Fintech don't fit in the same investment space. The risk profiles are incompatible. And anything that mixes them concerns me.
Mak
  |     |   Comment #3
P_D...I wouldn't be interested in either of the offers but good info, thanks
WheelinDealin
  |     |   Comment #4
Maybe I'm too risk-adverse, but I tend to be skeptical of this type of "fintech". I'm not sure the safety nets are there and functioning properly.
P_D
  |     |   Comment #5
"I'm not sure the safety nets are there and functioning properly."

Precisely. It's either a "riskless" asset or it's not. And this is not.
Kerry2
  |     |   Comment #18
P_D you are correct about the chain of custody of the funds, however, most of the banks and CUs are doing the same thing in the background. Instead of paying FDIC insurance on the money at the depositors, they diversify the funds among many other FI in the group and or lend them to other banks or customers at the same ratio 1:10 and they pretend that our money are theirs and they can do what ever they want, similar to bail-in law. If one of them fails, it will be very difficult to undo the chain of custody and or FDIC to get involved.
Hojo20
  |     |   Comment #6
I put a ton of dough into a SaveBetter when it went to 1.06%. I pulled it out to a regular bank. I felt uncomfortable with their platform and that i couldn't move money around easily.
blazer9
  |     |   Comment #7
Would really like to stash a pile dollars into a product they offer.
The line of thought on DA is to Keep your powder dry. "Available"
.
WheelinDealin
  |     |   Comment #8
It seems to me that Save Better is just a "middle-man" who takes your money and then puts it in a bank with a bunch of other people's money for a preferred rate of return. So you have no direct access to the bank, account numbers, or your monies there. You have to go through SaveBetter for everything. And what if they don't answer the phone or decide not to allow withdrawls for whatever reason?
P_D
  |     |   Comment #9
"And what if they don't answer the phone or decide not to allow withdrawls for whatever reason?"

Or go belly up.
Kerry2
  |     |   Comment #20
P_D,#9 this will be the outcome:

https://twitter.com/i/status/1546168180388806656
enduser
  |     |   Comment #10
I'm not sure why DA would even promote this risky product to us wise and skittish savers. I don't care who save better partners with. This pooling concept has too many red flags and reminds me of the proverb "a fool and his money will soon be parted".
P_D
  |     |   Comment #11
In my view I am glad to see Ken's writeup about investments like this on DA. Not only do I often learn something about new investment genres like this, but I think it is well within the scope of retail fixed income bank related and similar investments which is the core topic of this site. It is always better to have more information than less so people can decide for themselves what best fits their individual needs.
fred_b
  |     |   Comment #12
How is this riskier than a brokered CD from Vanguard or Fidelity? When you get a brokered CD, do you get an account number at the FDIC-insured FI issuing the CD? Sure, I'd rather deal with Vanguard or Fidelity than a fintech middleman, but is there really higher risk? I'd appreciate some feedback.
alan1
  |     |   Comment #13
fred_b -- you hit the nail on the head. Any problems have nothing to do with the existence of a middleman per se; any problems have nothing to do with the absence of an account number at a particular bank.

I do believe there is much higher risk with these sorts of fintech products than with purchasing CDs through a major brokerage.

1. Based on what I've read, a number of fintech operators have been outright scammers, and others just don't have their act together. And these operations tend not to have long-time track records.

2. When you purchase a CD through Fidelity or Vanguard, you know the identity of the bank that issued the certificate. With these sorts of fintech products (even if they are honest and transparent), you may know the identity of the bank when you make your deposit, but a participating bank may leave the program, and your money winds up at another institution. That other institution may be less sound than the initial custodian. True, you could have a brokered CD where the issuing bank is acquired by a less sound institution; that's also true of accounts you have directly at banks. But the risk of liquid funds winding up at a fintech's Who-Knows-Where Bank is something that I find especially scary.

3. When you purchase CDs at Vanguard, the funds are taken out of your Vanguard settlement fund (Vanguard Federal Money Market Fund), on the date that your trade settles. The settlement fund is not FDIC-insured, but I view the fund's underlying assets as quite safe, and the fund has maintained its $1.00 share price for many, many years.

By contrast, it is unclear to me what happens when you send funds to these fintech accounts. Are they instantly in an FDIC- or NCUA-insured account, or is there some sort of lag time (milliseconds? hours? a day? I do not know.)? And if there is a lag time, where are the funds?

re Comment #2:

The author of Comment #2 states that Strike Two is "you don’t have an account number and routing number that you can use to access the account from outside the SaveBetter platform."

Similarly, when you get a CD through a brokerage (rather than directly from a bank), or a U.S. Treasury bill, note or bond.through a brokerage (rather than through TreasuryDirect), "you don’t have an account number and routing number that you can use to access the account from outside the" brokerage platform. There are things I don't particularly like about Vanguard, but that ain't one of them.

As to Comment #2's Strike Three: "Anytime you have a middleman the chance of problems grows exponentially." -- What are the exponentially growing problems that Vanguard or Fidelity customers are subjected to when they purchase CDs and Treasury obligations? I am unaware of them. I am certain that individuals have encountered problems, but that's also the case with dealing directly with banks, credit unions, or TreasuryDirect.

Thank you fred_b for your valuable observations.
P_D
  |     |   Comment #14
I'm glad you asked this question fred_b and I was wondering if someone would.
 
I think alan1 covered some of the answer and I agree with much of what he wrote, but I would add this important point.
 
When you buy a brokered CD from Fidelity or Vanguard, they are classified as "securities," regulated by the SEC and covered by SIPC. A CD directly purchased from a bank is not a "security." Because this fintech entity is not a brokerage firm, I do not believe that this account qualifies for SIPC. SIPC protection gives you another layer of protection which is especially useful in the event of fraud or incompetent accounting of your account which in a case where a financial institution uses an allocated accounting system like this is important.
 
I think that the next most important point is that as brokerages, Fidelity and Vanguard are highly regulated entities operating an institution that is well established. Not so with the fintechs. They are thus more like the wild west when it comes to regulation; it's still being worked out.


I'll add another point that gives a different dimension to this question.  A brokered CD is technically riskier than a CD purchased directly from an FDIC insured bank and both are riskier than a treasury security.  That is one reason why brokered CDs can sometimes pay higher rates than direct CDs and why both sometimes pay more than treasuries.  This is a complex topic but part of the reason the CDs are "riskier" is a direct result of having "middlemen."  They are insured private entities as opposed to the US government which is not insured except by its authority to create money and issue securities which are direct obligations of and backed by the full faith and credit of the US government.  So while I agree that having a middleman is not an issue "per se" the effects of having a middleman make an investment risker than one which does not and that was my point.
 
I differ a little with some of alan1's comments on my points, but I think the above makes the case pretty well so I won't get into that.
alan1
  |     |   Comment #16
I believe much of Comment #14 is erroneous, but I might be mistaken. I welcome any corrections, and would be interested in learning of sources that support assertions made in Comment #14.

According to Comment #14:
When you buy a brokered CD from Fidelity or Vanguard, they are classified as "securities,"

According to FINRA (Financial Industry Regulatory Authority):
"Although brokered CDs may have certain features that traditional CDs do not have, it is important to remember that, as long as a banking institution issues the brokered CDs, sets all of their features, and FDIC insurance applies to them, brokered CDs are generally considered bank products, not securities."
(see p. 2 of PDF at https://www.finra.org/sites/default/files/NoticeDocument/p003449.pdf;
for circumstances that could result in a brokered CD being deemed a "security", see p. 3 of the PDF)

Now as to CDs that are, or might be, "securities", Comment #14 asserts:

"SIPC protection gives you another layer of protection which is especially useful in the event of fraud or incompetent accounting of your account which in a case where a financial institution uses an allocated accounting system like this is important."

Even if the brokered CDs are securities, I believe that the SIPC (Securities Investor Protection Corporation) protection only kicks in if the brokerage firm fails. If a Vanguard or Fidelity customer is a victim of "fraud or incompetent accounting", SIPC protection is unavailable, except in the unlikely event that Vanguard or Fidelity has also failed.

There are other remedies potentially available to Vanguard and Fidelity customers, but SIPC protection is irrelevant if Vanguard or Fidelity is still operating, but you've been victimized by them.

from the SIPC website:

"SIPC has recovered billions of dollars for investors. Our job is to recover missing cash or securities if your brokerage firm has gone out of business."
https://www.sipc.org/for-investors/

"The Securities Investor Protection Corporation (SIPC) protects customers if their brokerage firm fails."
https://www.sipc.org/for-investors/introduction

for more on the SIPC, see their brochures:

"How SIPC Protects You: Understanding the Securities Investor Protection Corporation"
https://www.sipc.org/media/brochures/HowSIPCProtectsYou-English-Web.pdf

or

"Cómo lo protege la Corporación para la Protección de Inversionistas en Valores"
https://www.sipc.org/media/brochures/HowSIPCProtectsYou-Spanish-Web.pdf

and

"The Investor’s Guide to Brokerage Firm Liquidations"
https://www.sipc.org/media/brochures/Liquidations-Web.pdf

The author of Comment #14 concludes with the self-congratulatory statement:
"I think the above makes the case pretty well..."

I suspect that the folks at FINRA and SIPC would disagree with that conclusion.
P_D
  |     |   Comment #17
I have read that passage from FINRA before that you posted alan1. But I am not aware of the full context. Maybe it is referring to primary market brokered CDs as opposed to secondary market CDs. To my knowledge, the latter at least are "securities" as defined by federal regulation.

Note that that passage says "CDs are generally considered bank products, not securities."

Other than that I don't disagree with what you said about SIPC. My understanding is that it will cover your losses on CDs in the event that Vanguard or Fidelity fail but not cover them in the event that this fintech fails (and I listed some of the hazards, e.g. fraud or improper accounting that they cover). So I don't see any disagreement on that point.

Brokered Certificates of Deposit: Much More Risk than Standard CDs (kurtalawfirm.com)
"Are Brokered CDs Securities?Yes, brokered CDs are securities. Investors can buy and sell brokered CDs on a secondary market. This makes it possible to redeem them before their maturity dates, unlike regular bank CDs.However, keep in mind that investors looking to sell their brokered CD may not find buyers quickly or be able to sell at the desired price."

I think you jump too quickly to the wrong conclusion about the meaning of some of my points and consequently sometimes see disagreement where there is none.
Kerry2
  |     |   Comment #19
P_D, nicely explained, however you are missing a fundamental flaw in our banking system, the BAIL-IN law. If a FI fails they are allowed to confiscate all or partial depositor's money until they get solvent. As time goes by, many if not all FI will hit the wall of no return sooner or later, be prepared for it.
P_D
  |     |   Comment #21
Thank you Kerry2.

I stand by the points I made above but just want to post one last comment to succinctly reiterate and summarize what I believe is the most important point of the response to fred_b's question in this thread because there has been a lot of diversion.

fred_b's question was:
"How is this riskier than a brokered CD from Vanguard or Fidelity?"

And the point that I made is that one important difference is that your investment with SaveBetter is not covered by SIPC while your investment in a brokered CD with Vanguard or Fidelity is.

I believe that to be factually correct and perhaps the most critical answer to the question. If it is not factually correct, I stand ready to amend my comment. But so far I have seen no evidence to the contrary.
Choice
  |     |   Comment #22
Spoiler Alert. All CDs are securities, ie money or value provided to another with the expectation of a return based on efforts of others. Whether or not a specific type of security is governed under requirements of…. is a different ?
P_D
  |     |   Comment #23
"All CDs are securities..."

Don't mean to spoil your spoiler alert but I believe that to be incorrect. One of the technical requirements of the financial definition of a security is that it must be tradable. A CD you invest in directly with a bank is not tradable and therefore not a security by convention of financial definition.

But I agree with the concept of your other statement that different kinds of financial instruments may fall under the regulatory purview of different government agencies.
Choice
  |     |   Comment #24
Tradable? Nope…soooo, a non traded Ponzi scheme is not a security transaction …really!
Kerry2
  |     |   Comment #25
You are onto something, but you have to explain that the big banks have advantage over the smaller banks in that, that they can play with the depositors money as their own money and can invest in the stock market or exchange them for other securities, as long as they keep 10% of the depositors money as security to satisfy the FDIC.

The smaller banks can not do that, they buy overnight bonds/notes from the US treasury and also can invest the money into other secure investments backed by FDIC. There is no fair play in our banking system, therefore, the smaller banks are prone to failure for not being able to compete on the open market. Some smaller banks work in the grey area just to be able to make more money from our investments, like they trade some CD certificates with the big banks to bring in more profits home. If caught, the penalty is minuscule.

Also to remember, the big banks do not share the profits with the consumers, most of the profits goes to the upper managements as bonuses or extra high salaries or dividends or issuing preferred stocks that is shared among them as another bonus.
Shelby
  |     |   Comment #15
I just purchased brokered secondary mkt CD's from my major brokerage.No commission 3yr major bank FDIC CD close to 3.50% under par with no additional fees.In fact Sallie Mae is offered in the secondary mkt for 3/4 yr CD purchase well above what Save Better is offering.
zjts
  |     |   Comment #29
would anyone with  a savebetter account share their bonus code with me? $25 for each of us [email protected]
banktester
  |     |   Comment #30
Just sent you a PM. I didnt even know there was such a thing. thanks
fdic
  |     |   Comment #31
thank you. thinking of opening an account with them
zjts
  |     |   Comment #32
sent you a pm
juliet17681
essjaye
  |     |   Comment #33
I'm still confused as to the safety of Savebetter.

If I open accounts through them and deposit $250,000 each to Banks A, B, And C do I have FDIC insurance e totaling $750,000?

And what seems to be the consensus as to the safety of this Fintech?
Choice
  |     |   Comment #34
What if your funds get caught between the Fintech and any bank if things go south? How are you being compensated for that risk?
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Competitive 5-Year CD Rate at Ponce De Leon Federal Bank in New York City

Ponce de Leon Federal Bank is offering a competitive 5-year CD rate of 2.75% APY. Minimum deposit is $500. This rate is listed at the bank's rates page as of 11/15/2010.

As a comparison to internet banks, the best 5-year CD rate is 2.70% APY at iGObanking.com as of 11/15/2010. For credit unions with easy membership, the best 5-year CD rate is 3.03% APY at Melrose Credit Union. The best 5-year CD rate in NYC appears to be at LOMTO Federal Credit Union which is offering a 3.14% APY 5-year CD...

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4.75% 60-Month CD & 4.00% 36-Month CD at Ponce De Leon Federal Bank in New York City
Ponce De Leon Federal Bank is offering several competitive CD rates. These include a 4.75% APY 60-month CD, a 4.00% APY 36-month CD, and a 3.75% APY 24-month CD. Minimum deposit is $500. These rates are listed in the bank's rate table as of 1/13/2009. I called the bank late yesterday, and I was told these rates are still valid. However, they update rates on Wednesdays, so these may not last much longer.

A branch visit is required. Branches are located in Bronx, Manhattan, Brooklyn, Astoria and Jackson Heights, New York,...

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