This morning SFGI Direct raised the rate on its Savings Account by 5 bps to 1.36% APY. This applies to all balances of at least $1. The account requires $500 to open, and there are monthly service fees.
It’s a small increase, but it’s an encouraging sign as we head into this week’s Fed meeting. I also like to highlight banks such as SFGI Direct which have a long history of remaining competitive without creating new accounts. Out of all of the nationally-available, small-minimum savings and money market accounts which currently have rates of at least 1.35% APY, SFGI Direct is the only one that has maintained a rate above 1% since January 2014. That excludes accounts with rates that only apply to new customers or accounts with small balance caps. You can see the account history chart by clicking the savings account row in the table above. This will expand the row to show the rate history of the account.
Thanks to DA reader, Maecl, for his Forum post about this latest rate hike.
SFGI Direct Savings Account Overview
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 overview from September.
- 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).
- 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)
- 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.
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 17.27% (above average), based on September 30, 2017 data. In the past year, the Bank has increased its total non-brokered deposits by $419.6 million, excellent annual growth rate of 42.84%. This large growth was primarily due to the acquisition of First Century Bank in April. Please refer to our financial overview of SFGI Direct/Summit Community Bank for more details.
Summit Community Bank (Summit) is currently West Virginia’s third largest bank, with assets in excess of $2.09 billion and more than 78,000 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 branches in West Virginia (17) and Virginia (13).
How the Savings Account Compares
When compared to the nationally available Money Market accounts and Savings accounts tracked by DepositAccounts.com that have no maximum deposit and small minimum balance requirements, SFGI Direct Savings Account’s APY currently ranks ninth. Below is a sample of the top accounts as compared to SFGI Direct Savings Account. Note, the table excludes the savings accounts at Incredible Bank and Colorado Federal Savings Bank due to their large minimum balance requirements. It also excludes the Mega Money Market Accounts at All America Bank and Redneck Bank due to their $35k maximum deposit.
|Interest Rate||Account Name||Credit Union/Bank|
|1.50% APY||Savings Account (no min)||DollarSavingsDirect|
|1.50% APY||eOne Savings - New Money Only (no min)||Salem Five Direct|
|1.45% APY||Savings Account (no min)||Live Oak Bank|
|1.36% APY||Savings Account ($1 min)||SFGI Direct|
The above rates are accurate as of 12/11/2017.