New Rate Leader - Vio Bank's High Yield Online Savings, 2.52% APY
Vio Bank has just added six bps to its High Yield Online Savings (HYOS) account, making it the rate leader for nationally available savings accounts with low minimum balance requirements. Currently earning 2.52% APY on all balances, the HYOS requires a minimum $100 opening deposit.
In the ten months since Vio Bank opened its virtual doors with a product line consisting of the HYOS and several CDs, the HYOS has added a total of 42 bps in ten rate increases.
Today wasn’t as good a day for Vio Bank’s shorter-term CDs, with most rates dropping by 5 bps.
Funding and Accessing the HYOS
The initial deposit (minimum $100) must be made by ACH from the linked bank account named on the online application. After the account is established, up to five external bank accounts can be linked and deposits from those linked accounts can be made via ACH or wire. The speed of incoming ACHs is anywhere between 2-5 business days, with hold times for incoming ACH being 2 or 3 business days.
This is a “true” savings account, having no ATM/debit card. Any withdrawals must be made through ACH or wire. Withdrawals initiated through Vio Bank’s online banking platform are limited to $5k per day, with an aggregate monthly total of $20k. Withdrawals initiated by an external bank have no dollar limits. There is a $10 excessive transaction fee “for each limited withdrawal in excess of six withdrawals per monthly statement cycle.” The Online Banking Agreement provides a great deal of useful information about the ins-and-outs of Vio Bank transactions.
Potential Fees
Since I first wrote about the HYOS account, the number of fees has actually decreased: no charge if the account is closed within 90 days of opening (was $25) and the charges for incoming wires, either domestic or international, have been eliminated. While there is no monthly maintenance or service fee, there are a couple potential charges to be aware of, including,
- $5 per month after 12 months of inactivity
- $5 per month for paper statements
- $18 for an outgoing domestic wire
Beneficiaries
Multiple payable-on-death (POD) beneficiaries are allowed. While there is no set number, the online application can only accommodate two beneficiaries to be named at a time. Social Security numbers are NOT required for beneficiaries. Charities/non-profits cannot be named, but trusts can be named as a beneficiary.
Availability
Headquartered in Oklahoma City, Vio Bank offers accounts to US persons, defined as “a citizen or resident of the United States,” 18 years or older with a valid Social Security number.
Only individual and joint accounts can be opened with Vio Bank, with custodial accounts and trust accounts not permitted. As mentioned above, trusts can be named as a beneficiary.
As an internet bank, Vio Bank has no brick-and-mortar branches. Opening a High Yield Online Savings account (or any other Vio Bank product) can only be done online.
Bank Overview
As an online division of MidFirst Bank, Vio Bank operates under MidFirst Bank’s FDIC Certificate and shares its financial history.
Vio Bank/MidFirst Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 5.27% (excellent) based on March 31, 2019 data. In the past year, the Bank increased its total non-brokered deposits by $816.53 million, an excellent annual growth rate of 10.22%. Please refer to our financial overview of Vio Bank/MidFirst Bank (FDIC Certificate # 4063) for more details.
Note: Vio Bank’s FDIC Coverage page states,
Deposits held at Vio Bank are deposits of MidFirst Bank and are combined with any other MidFirst Bank deposits for FDIC insurance purposes. MidFirst Bank deposits includes deposits at MidFirst Bank and any of its divisions including Vio Bank, MidFirst Private Bank, 1st Century Bank, and MidFirst Direct.
MidFirst Bank, one of the five largest privately-owned banks in the United States, traces its roots to Midland Mortgage Company, which was founded in 1950 by a group of Oklahoma City area bankers. The name was changed to MidFirst Bank in 1982, following the purchase of a thrift charter. Through continued growth and market expansion, today’s MidFirst Bank has assets in excess of $19.3 billion and 77 branch locations in Colorado, Oklahoma, and Arizona.
As mentioned above, MidFirst Direct is also a division of MidFirst Bank, and like Vio Bank, it also offers an online savings account and online CDs. I first reported on MidFirst Direct in 2012, when it offered very competitive online CD rates. DA began tracking MidFirst Direct’s High Yield Online Savings (HYOS) account in January 2016; at that time, the HYOS earned 0.45% APY. While the HYOS has seen several rate increases, the rate is still low when compared to other internet savings accounts. For current rates and rate histories, please refer to the rates section of our MidFirst Direct information page.
How the High Yield Online Savings Compares
When compared to 213 Savings Accounts tracked by DepositAccounts.com that are available nationwide and do not require a large minimum balance, Vio Bank’s High Yield Online Savings APY currently ranks first.
The above rates are accurate as of 6/7/2019.
To search for the best Savings Account, both nationwide and state specific, please refer to DepositAccounts.com’s Savings Account Rates page.
2.5% savings account rate till the end of the year
Given their history of top rates, I doubt this is a bait & switch but I'm not opening another account over .002%.
I am moving most of my remaining AA funds to Northern before the 21st though.
In my view, for liquid funds, PurePoint's NPCD offering is more attractive than this Vio Bank account. Just the thirteen month rate lock alone is sufficient reason to choose PurePoint, given possibility interest rates could decline later this year.
At Northern, I can pay a $37 credit card bill and send my broker $1500 without breaking a larger npcd.
True, my rate is only guaranteed thru year end but another extension would not surprise me at that time given they increased their previously guaranteed rate. (And that rate is only for those grandfathered which makes it easier for the bank)
Interest rate:
2.47%
I will certainly be annoyed if I am the only one marked out for a tiny rate cut:) (2.4% APR online for me). I did call twice to confirm that it is a global rate cut for all, but will show up respectively as individual statement evolves (my statement of 31 May listed 2.44% APY).
Stay tuned for my strong protest, yes indeed, for a 0.07% cut:D
The only exception I can think of is that I opened the HYS at a local branch In Mass, did you all open accounts via EBSB Direct?
The important information I got (from my own educated guess and confirmed by a CSR and a VP today) is that this small rate reduction (0.07%) applies only to those who opened accounts at branches. However, the overall trend for both EBSB and EBSB Direct are downward; they are not looking to be rate leaders, so to speak. :)
Still a good rate, but I am opening an NBD MM account just in case.
https://www.northernbankdirect.com/money-market
me it could be a short-lived offer like last year. Hope they're prepared for a boat-load of incoming funds,, ..wonder if the checks are still free?