SFGI Direct has just raised the rate on its Savings Account (1.21% APY). It was just over a month ago when SFGI Direct increased the savings account APY to 1.16%. Before that rate hike, the APY was 1.06% and had been at 1.06% since June 2015. The account has a long history of remaining competitive. This can be seen by clicking the savings account row in the table below. This will expand the row to show the rate history of the account.
With the Fed holding rates steady this week, SFGI Direct’s rate increase is likely being driven by competition. Last week Synchrony Bank increased its savings account APY to 1.20%, and this week Barclays did the same thing. Few internet banks seem willing to challenge the rate leaders. Instead, most of the internet banks want to give an impression that they are remaining competitive. They probably won’t attract many new deposits this way, but this strategy probably prevents most of their customers from moving their money.
SFGI Direct’s Savings Account has several nice features such as no monthly fees and no maximum dollar limit on external transfers. Below is a copy of my SFGI Direct Savings Account review from last month.
- No monthly fees or minimum balance requirements (opening deposit ranges from a minimum of $500 to a maximum of $25k).
- Online line account application and funding (per FAQ).
- You can initiate external transfers (ACH).
- Initiating ACH transfers through another institution is allowed (per FAQ).
- Fast external transfers (readers have reported one day delays).
- No maximum dollar limit on external transfers (per FAQ).
There has been one very important change for the better: the online application now allows up to four named beneficiaries. In addition to the usual name/address/birthdate information, SFGI Direct requires a Social Security number for each beneficiary.
On the downside,
- Only allow one external link for ACH transfers (per FAQ), but you can change the linked account 90 days after account opening.
- Five business days hold for the initial ACH deposit and a two day hold for ongoing ACH deposits (per account disclosure)
Thanks again to DA reader, Maecl, for his Forum post about this rate increase.
SFGI Direct is the online division of Summit Community Bank, which is headquartered in Moorefield, West Virginia. U.S. citizens and resident aliens, 18 years or older, can opening a SFGI Direct Savings Account through the Bank’s online application.
SFGI Direct has quite a detailed FAQs page that answers almost any question you might have about the Savings Account. If you need additional information, CSR can be contacted at 877.776.9722.
As the online division of Summit Community Bank, SFGI Direct operates under Summit’s FDIC Certificate (# 34102) and shares its financial history.
SFGI Direct/Summit Community Bank has an overall health grade of "B" at DepositAccounts.com, with a Texas Ratio of 21.53% (above average), based on March 31, 2017 data. In the past year, the Bank has increased its total non-brokered deposits by $144.93 million, excellent annual growth rate of 15.13%. Please refer to our financial overview of SFGI Direct/Summit Community Bank for more details.
Summit Community Bank (Summit) is currently West Virginia’s fourth largest bank, with assets in excess of $1.7 billion and more than 57,300 customer accounts. Summit’s history traces back to the South Branch Valley National Bank, which was chartered in 1883. Summit extended its market area into Virginia in 2000 and today has 30 full-service branches in West Virginia (17) and Virginia (13).
How the Savings Account Compares
When compared to the 205 Savings Acccounts tracked by DepositAccounts.com that are available nationally, six savings accounts have higher rates. SFGI Direct’s Savings Account rate is now tied with the savings account rate at Incredible Bank. Below is a sample of these six accounts that have higher rates, showing how they compare with SFGI Direct.
|Interest Rate||Account Name||Credit Union/Bank|
|1.40% APY||Dollar Savings Account||DollarSavingsDirect|
|1.35% APY||Savings Account||Live Oak Bank|
|1.30% APY (up to $100k)||Premier High Yield Savings||CIT Bank|
|1.21% APY||Savings Account||SFGI Direct|
The above rates are accurate as of 7/28/2017.