I first reported on Stock Yards Bank & Trust's eSavings account last year when the yield was 2.15%. The yield remains competitive (1.50% APY as of 9/13/2010). This is one of the rare internet savings accounts that is not available nationwide. You have to enter your zip code in the online application, and it'll inform you if you are outside their target area. The target areas appear to be around Cincinnati and Indianapolis.
For those who can qualify, this looks like a good deal. The minimum initial deposit is $500. There is no minimum balance required or monthly service charge. One downside is that they limit free withdrawals to only 3 per month. Please refer to my 2009 eSavings review for more details.
Most of Stock Yards Bank's offices are located in Louisville, Kentucky with just one in Cincinnati and one in Indianapolis. So it appears this eSavings account is intended to be a low-cost way to bring in more deposits from these areas.
The bank's overall health score is 4 out of 5 with a Texas Ratio of 7.68% (excellent) based on 6/30/10 data. Please refer to our financial overview of Stock Yard Bank & Trust for more details. The bank has been a FDIC member since 1934 (FDIC Certificate # 258).
Other Online Savings Accounts
You can sometimes receive better rates at these regional internet savings accounts. Besides this one, there's also Pinnacle Bank's BankOn (see see review). BankOn's Money Market Savings Account pays 1.60% APY on all balances as of 9/13/2010. BankOn's accounts are only available to Colorado, Kansas, Missouri, Nebraska and Wyoming residents.
These local internet savings accounts are not always better deals. Back in 2005 Sunmark Federal Credit Union in New York State began an internet savings account at RateEdge.com. Back in 2007 the account had better rates than most nationwide internet savings accounts. However, when rates started to go down, RateEdge slashed rates. Since mid-2009, the rate has only been 0.20%.
To find the best savings account rates available where you live, please refer to the savings account rates section of DepositAccounts.com.