2.60% Reward Checking Account with $100K Balance Cap at Savoy Bank in NYC - Local Only
POSTED ON BY Ken Tumin
Savoy Bank is offering a reward checking account called Super NOW. It has the following rates and features if certain monthly requirements are met:
It's a small bank with one office located in New York City.
The bank was established in January 2008 so it's labeled as a start-up at BauerFinancial. It has a 3-star rating for safety and soundness (performing) at Bankrate.com based on 6/30/09 financial data. The bank is a FDIC member (FDIC Certificate # 58641).
Update 12/12/09: Savoy Bank received a NY State Cease-and-Desist Order (pdf) and a FDIC Cease-and-Desist Order (pdf) on 6/08/2009.
Other Reward Checking Accounts
Reward checking has been rare in New York so I'm happy to find a new one. A rate under 3% is low for reward checking, but the $100K cap is much better than the typical $25K cap.
To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.
- 2.60% APY on balances up to $100,000 guaranteed to 4/15/2010
- 1.30% APY on portion of balance above $100,000 (tiered money market rates)
- If requirements are not met, it reverts to tiered money market rates
- Refunds ATM fees worldwide
- At least one debit card purchase
- One Direct Deposit or other ACH deposit
- Receive electronic statements
- $1 minimum to open
- No monthly service fees
- Free bank style checks
- Free bill pay services
It's a small bank with one office located in New York City.
The bank was established in January 2008 so it's labeled as a start-up at BauerFinancial. It has a 3-star rating for safety and soundness (performing) at Bankrate.com based on 6/30/09 financial data. The bank is a FDIC member (FDIC Certificate # 58641).
Update 12/12/09: Savoy Bank received a NY State Cease-and-Desist Order (pdf) and a FDIC Cease-and-Desist Order (pdf) on 6/08/2009.
Other Reward Checking Accounts
Reward checking has been rare in New York so I'm happy to find a new one. A rate under 3% is low for reward checking, but the $100K cap is much better than the typical $25K cap.
To find reward checking accounts in other areas of the nation, please refer to the reward checking section of DepositAccounts.com. To learn more about reward checking, please refer to this reward checking overview.
After that they will lower the rate to below competitive rates.
Reminds me of when Igobanking also did a interest checking account but without a guarantee and no debit card requirements and less perks.
I haven't yet found a one size fits all bank to use since I keep swapping banks, and for 4 months, Savoy isn't worth it.
Would rather HSBC than Savoy because of its wider scale and reach even with its lower interest rates for its online accounts.
Paper checks are meaningless. I get them from GE Interest Plus with a $250.00 min requirement just in case which has a higher yield which will be there for the long haul over Savoy's 4 month yield.
Don't find anything of interest here. Its a one branch bank with nothing to offer and a 4 month teaser.
All the perks and the rate look nice but after 4 months, the offering will be even worse.
They had a Cease and Decist Order last year as per:
http://www.banking.state.ny.us/ea090608.pdf
Do not do banking with these guys. Bank will be bankrupt just like AmTrustDirect. Deposits will be FDIC insured, however with a bank the goal is to make money, not give it away.
A 4 month teaser will not hold, plus it is doubtful the bank will even last this long. The 3 stars is incorrect on this institution.
Giving money to an unresearched bank is akin to giving your money to Bernie Madoff and company.
And safe and secure banks, give the least rates, while the unsafe risky banks make promises they can not keep.
Rate swapping gets you nowhere and putting money in the unregulated marketplace can be even worse and deadly.
Do yourself a favor and don't bank with Savoy. The cease and decist order I posted is all you need to know.
How many people will bank with Savoy based on a rate without even giving a first glance at the fundamentals of the institution they are dealing with.
Just don't do it.
Most recent cease and decist order to Savoy Bank.
But posting this without the notice of cease and decist order and saying it has a 3 star ranking from Bankrate.com, makes you think otherwise.
When I talked with a bank rep yesterday, I did not ask if they accept out-of-state customers. Banks' policies on this often changes with different reps reporting different info. So it's best to confirm with a branch manager before planning a long trip.
When a bank has a cease and decist order, it makes you wonder why it was there to begin with. One needs to understand how banks work, and how safe the funds are once they decide to do business with the bank.
But it does boggle the mind why it was given a 3 star rating by Bankrate. I am not saying nor was trying to insinuate any wrongdoing.
The blog is realtime and as such information has to be taken with a grain of salt.
Personally I would never do banking with a bank for a 4 month teaser rate which has one branch who also has a cease and desist order in play. This is a recipe for disaster for the consumer.
If the bank has a cease and decist order, it shouldn't be offering high rates either because it means the bank has to stabalize the assets. Customer is FDIC insured, but FDIC insurance takes time and a willing suitor has to be found.
Even on 100,000, 2.6% for 4 months is minimal, its not even worth the time even if you want to and understand the necessary risks since if you have that kind of cash you can be getting into much better investments to begin with.
And at lower dollar amounts, the amounts gained are peanuts.
and
Next Day Availability on your deposited funds.
Look I am not going to deny the terms and conditions of the bank but if you live in NH are the perks so big in your favor you need to travel to NYC for banking?
With AmtrustDirect, I had issues which also had a cease and decist order before being taken over by New York Community Bank.
Savoy has excellent perks but the rate has a seperate small fine print, so while the account is good till the date, one never knows if they will change it.