TAB Bank High Yield Savings Account Has Top Rate
Since the beginning of the year, savings account rates have remained sluggish as CD rates have become robust, with substantial APY increases seeming to occur every week. Savings account rate increases have started to pick up. As DA reader, rockies, noted in a Forum post, Utah-based TAB Bank raised its High Yield Savings (HYS) rate this week to 1.26% APY on all balances. After maintaining a 0.50% APY for about a year, a total of 76 bps have been added in the last four months; the HYS currently has the highest rate offered on a nationally available savings account.
More than three years ago, TAB Bank restructured the rate tiers, and the $2.5k minimum deposit and minimum balance requirements have disappeared. There is no minimum deposit requirement and all balances of $1+ earn the stated APY.
Interest is compounded daily and credited on a monthly basis. If the High Yield Savings account is closed before the interest is credited, the accrued interest will be forfeited.
The HYS is basically fee-free, with no monthly service fees. The Excessive Withdrawal Fee of $20 for each withdrawal beyond the six allowed is currently not in effect, as TAB Bank continues to honor the Federal Reserve’s Regulation D change. CSR explained that currently there are “no limits on the number of fee-free withdrawals” that can be made from an HYS. eStatements are free, but paper statements incur a $5 fee per statement.
According to CSR, funding an HYS can be done by ACH, wire, or check; online and mobile banking access is also available, using TAB Bank’s recently updated online banking platform. There is no limit on the number of links that can be established to external bank accounts for ACH transfers. Unfortunately, TAB Bank limits outgoing ACH transfers initiated in-house to $3k per day. When I expressed my surprise to such a small daily limit, CSR tried to make it sound better by saying, “but there are no weekly or monthly transfer limits” (except as dictated by the daily $3k limit). There are no limits on ACH withdrawals that are initiated from another bank.
TAB Bank CDs
In addition to raising the HYS rate, TAB Bank also did across-the-board CD rate increases, adding between 45 and 70 bps. Not surprising, the short-term CDs are offering the best rates, with the 9-month (1.55% APY) and 12-month (1.85% APY) having the most competitive rates in the CD product line. The minimum opening deposit for any TAB Bank CD is $1k, with no stated balance cap.
TAB Bank CDs are also available as IRA CDs (Traditional, Roth, CESA), earning the same APYs with the same deposit requirements.
As stated in the Truth in Savings document, the Early Withdrawal Penalty reads as follows:
If your account has an original maturity of 12 months or less: The fee we may
impose will equal 90 days interest on the amount withdrawn subject to penalty.
Funding a TAB Bank CD can be done by ACH, wire transfer, or check; maturing funds can be distributed through the same three methods. CDs automatically renew following a ten day grace period.
Availability
Headquartered in Ogden, Utah, TAB Bank has been offering its product line nationwide for several years. TAB Bank added an online application about four years ago, which is definitely an improvement over submitting an application by phone, e-mail, or even snail-mail.
A High Yield Savings account and/or a CD can be opened online or in person at the sole branch located on Harrison Boulevard in Ogden, Utah.
Bank Overview
TAB Bank has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 1.97% (excellent), based on March 31, 2022 data. In the past year, the Bank increased its total non-brokered deposits by $36.11 million, an excellent annual growth rate of 6.19%. Please refer to our financial overview of TAB Bank (FDIC Certificate # 34781) for more details.
Currently Utah’s 24rh largest bank, Tab Bank was established in 1998 as the Transportation Alliance Bank, Inc. by parent company, Flying J Inc. Originally founded to provide financial services to the US and Canadian trucking industry, TAB Bank subsequently expanded to offer custom working-capital solutions to businesses from a variety of industries.
According to a March 9, 2022 press release,
TAB Bank announced today the launch of its latest online and mobile platform, ushering in a new era of customer experience and future capabilities for businesses and consumers. The new banking external interface and back-end platform creates a consistent experience between mobile and online banking, and gives customers complete control over their interactions and account views.
“With this new platform, TAB Bank is moving forward with bold solutions that will help our customers track and leverage their money to greater financial success,” said Curt Queyrouze, CEO and president of TAB Bank. “It enables TAB Bank’s vision of banking as a service. In the coming months and years, the bank will unveil new products and features that will provide access to financial success for both small businesses and consumers. We know we will be successful as we help our customers succeed financially.”
How the High Yield Savings Compares
When compared to nationally available Money Market Accounts and Savings Accounts tracked by DepositAccounts.com, that do not require large balances or direct deposit, and do not have small balance caps, the TAB Bank High Yield Savings APY currently ranks first.
| APY | Account Name | Credit Union/Bank |
|---|---|---|
| 1.26% | High Yield Savings ($1 min) | TAB Bank |
| 1.25% | Bask Interest Savings (no min) | Bask Bank |
| 1.17% | High Yield Money Market ($1k min) | CFG Bank |
| 1.15% | High Yield Savings Account ($1 min) | Bread Financial (formerly Comenity Direct) |
To look for the best rates on liquid bank accounts, both nationwide and state specific, please refer to our Money Market Accounts Table and Savings Accounts Table.
How the 9-Month CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationally and have minimum deposit requirements of $10k or less, only credit union has a higher rate than currently offered on the TAB Bank 9-month CD. The following table compares the 9-month CD to the two highest-rate CDs from other banks and the two highest-rate CDs from credit unions.
| APY | CD Term (Early Withdrawal Penalty) | Credit Union/Bank |
|---|---|---|
| 1.60% | 9-Month Share Certificate Special (EWP=182 days) | NASA Federal Credit Union |
| 1.55% | 9-Month CD (EWP=90 days) | TAB Bank |
| 1.25% | 8-Month CD (EWP=90 days) | Evansville Teachers Federal Credit Union |
| 1.25% | 6-Month CD (EWP=90 days) | Limelight Bank |
| 1.25% | 6-Month CD (EWP=90 days) | Live Oak Bank |
How the 12-Month CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationally and have minimum deposit requirements of $10k or less, one credit union and three banks have a higher rate than currently offered on the TAB Bank 12-month CD. The following table compares the 12-month CD to the two highest-rate CDs from other banks and the two highest-rate CDs from credit unions.
| APY | CD Term (Early Withdrawal Penalty) | Credit Union/Bank |
|---|---|---|
| 2.26% | 12-Month Certificate Special (EWP=90 days) | Connexus Credit Union |
| 2.00% | 1-Year Bread Savings CD (EWP=180 days) | Bread Financial |
| 2.00% | 12-Month CD (EWP=90 days) | Crescent Bank |
| 1.85% | 12-Month CD (EWP=90 days) | TAB Bank |
| 1.75% | 12-Month Money Market Certificate (EWP=maximum 30% of maturity dividends) | PenFed Credit Union |
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.
The above rates and information are accurate as of 6/4/2022.
As long as there are no restrictions on ACHs initiated externally, such as in this case, it might not necessarily be a deal breaker especially since you are compensated for the inconvenience with a higher rate.
In my case though, during this point in a rate cycle, I find it unprofitable to chase liquid rates for a difference of 10 or 20 basis points even with the large amounts that I manage. Rates change too quickly and it is too much like a dog chasing its tail. Time is better spent managing other aspects of the portfolio. Instead I like to choose FIs that stay consistently competitive even if not at the top, have solid customer service, and execute transactions reliably and with minimum delay. Over a longer term I think this pays better dividends.
But right now the best i have is a measly .85% at both aa and marcus
Sending marcus some money for the first time without a bonus
But with .41% difference to TAB---- and more with the debt accounts its probably worth doing
I'd grade their customer service as poor, especially in terms of knowledge regarding their own website upgrades.
Option 1
Deposit a check- Choose from two convenient ways to deposit checks into your account:
1) Use our mobile check deposit.
2) Mail us a check to 4185 Harrison Blvd Ogden, UT 84403
Option 2
Transfer funds- Choose from two convenient ways to transfer funds into your account:
1) Send us a wire.
2) Send us an ACH from your existing institution.
Option 3
Switch your direct deposit over to TAB
When I went to my OnJuno account to set up TAB Bank as an external account, they use Plaid to connect the accounts. When I entered "TAB Bank," the only link that came up was TAB Bank-Business. I eventually found out from another source that Plaid lists TAB Bank-Personal under their original name, "Transportation Alliance Bank." Be forewarned if you use Plaid!
When opening my account online, I had hoped to set up a POD Beneficiary account, but there was no place during that application process that I was able to do so. Too bad!
Reasons why:
1. To avoid any limitations set at the target FI. (You are only limited by external F.I. Push/Pull limits). In this case you will bypass entirely the 90-day wait policy set by the new F.I. making it a non issue.
2. Only the F.I. that established the external links can initiate a PUSH or a PULL preventing the other F.I. from clawing back a push or pull.
I highly recommend that after completing any Plaid transaction you should change your login password/credentials.
You may be a Class Member if you are a United States resident and you connected a financial account to an app between January 1, 2013 and November 19, 2021.
https://www.plaidsettlement.com/
Too little reward? Yes of course, the lawyers always get the lions share, and we get peanuts.
This time their CSR seemed better-trained, or perhaps was simply a different person. She made the account non-dormant and emailed me info. to migrate my acct. to their current website upgrade. This time (unlike months ago), their instructions worked. After the upgrade my previously-established TAB acct. number was unchanged, meaning I could still initiate ACH transfers to this acct. from another FI. I did so and the funds arrived promptly, were immediately “available” in the old (rewards checking) acct., could be immediately moved by me on-line into the new (savings) acct., and are immediately both earning 1.26% and listed as “available”.
So sure, the 1.26% might easily be leapfrogged soon, but for now it seems useful.