With today’s 5 bps rate increase, Vio Bank’s High Yield Online Savings (HYOS) account is now the rate leader for nationally available savings accounts with low minimum balance requirements. The HYOS now earns 2.46% APY on all balances, and requires a minimum $100 opening deposit.
Since its introduction in late August (when Vio Bank opened its virtual doors), the HYOS has added a total of 36 bps in nine rate increases.
Funding and Accessing
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.
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
Multiple payable-on-death (POD) beneficiaries are allowed. While there is no set number, the online application only allows for 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.
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. Custodial accounts and trust accounts are not permitted, but 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.
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 6.18% (excellent) based on December 31, 2018 data. In the past year, the Bank increased its total non-brokered deposits by $939.98 million, an excellent annual growth rate of 12.04%. 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.
As mentioned above, MidFirst Direct is also a division of MidFirst Bank. Like Vio Bank, MidFirst Direct offers an online savings account and online CDs. I first reported on MidFirst Direct in 2012 when it offered very competitive online CD rates. We began tracking MidFirst Direct’s savings account in January 2016 when the rate was 0.45%. The rate has risen, but it 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.
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 $17.2 billion and 77 branch locations in Colorado, Oklahoma, and Arizona.
How the High Yield Online Savings Compares
When compared to 202 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 3/27/2019.
To search for the best Savings Account, both nationwide and state specific, please refer to DepositAccounts.com’s Savings Account Rates page.