Security Savings Bank is offering a 5.40% APY savings account. It's called the SecurityAdvantage Statement Savings Account. Here's the basic info from the bank's website.
- $100 minimum deposit to open
- $100 minimum balance to avoid $10 fee per statement cycle
- Interest compounded daily, credited quarterly
- No closing fee after 90 days. Before 90 days, the closing fee is $20.
- Typical 6 withdrawals per month allowed without a fee
- Application available online. Must be mailed with check and copy of drivers license
It looked too good to be true, so I called the bank for more info. Here are some additional details that I received:
- 5.40% APY is not a promo rate. Previous APY was 5.00%. In December, it was 3.55% APY.
- Available from any state
- Online banking is NOT available
- Allows ACH withdrawals and deposits initiated by another bank
- Without external ACH, withdrawals can be done my mail or by opening a money market account and initiating transfers by phone, then using MMA check
- No hard credit pull, just Chex System check
- $500K maximum allowed balance
The best way to use this bank seems to be in conjunction with an account at an online bank like GMAC or HSBC. Then you should be able to link your Security Savings Bank account and initiate ACH transfers from the online bank. For those who don't have an online bank that allows linking to savings accounts, Security Savings Bank's money market account is an option to allow convenient withdrawals. The money market account has a $1000 balance minimum to avoid fees and has check writing privileges with the first box of checks free. The rate is only 4.50% APY for balances over $1K, but you could keep most of your money in the savings account. Transfers from the savings to the money market can be initiated by phone.
The bank also has some very competitive certificate of deposit rates which range from 5.35% APY 3-month, 5.50% APY 6-month and 5.65% APY for 1-year and longer. The minimum deposit for all is $1K.
Security Savings Bank is a small, one-office bank located in Las Vegas, Nevada. Since this can be a little worrisome (what happens in Vegas, stays in Vegas), I've done a little research at FDIC and Bankrate.com.
Security Savings Bank is FDIC insured. Bankrate.com gives it a financial strength rating of 3 out of 5 stars (performing). Bauer Financial gives it 4 out of 5 stars (excellent).