Last week, I wrote about AloStar Bank of Commerce’s (AloStar) recent CD rate increases. AloStar also raised the rate on its Savings account (1.05% APY) at that time.
The minimum opening deposit is $50, although the maximum opening deposit is limited to $250k.
This is the first rate increase for the Savings account since its debut in July 2011, when the initial APY was 0.50% APY.
While AloStar’s website lists a great deal of information about the Savings account, I couldn’t find the answers to several questions that I know interest DA readers. AloStar’s CSR was amazingly helpful in addressing my concerns and provided answers. The following is my laundry list of questions, formatted a la Jeopardy style.
- Yes - Is there an ACH transfer service that customers can log into and initiate a transfer to/from their accounts at other banks?
- Yes - Is it free to initiate ACH transfers?
- $25k incoming / $10K outgoing - What is the maximum dollar amount for incoming and outgoing transfers (initiated using AloStar's system).
- No Limit - If AloStar does have an ACH transfer service, how many accounts at other banks can be linked?
- Yes - Does AloStar allow ACH deposits and/or withdrawals that are initiated by you from another bank?
- Available on the effective date of the deposit - How many days after an ACH deposit are the deposited funds placed on hold (inaccessible)?
- 1 business day - What is the transaction time for ACH transfers for incoming and outgoing transfers?
- Yes - Can beneficiaries (i.e., POD or ITF) be listed?
- Yes - Can multiple beneficiaries be listed?
- Name, SS#, and birthdate - What information for each beneficiary is required?
- Yes, Revocable and Family Trusts - Can the account be opened as a trust account?
Headquartered in Birmingham, Alabama, AloStar Bank of Commerce offers its services and product line to all U.S. citizens, 18 years or older, with a permanent U.S. address.
Opening a Savings accounts can done online. While AloStar does not have any traditional brick-and-mortar branch locations, it does maintain a commercial lending office in Atlanta, Georgia.
AloStar Bank of Commerce (FDIC Certificate # 59060) has an overall health grade of "A" at DepositAccounts.com, with a Texas ratio of 6.81% (excellent) based on December 31, 2015 data. In the past year, AloStar has increased its total deposits by $16.22 Million, an above average growth rate of 2.56%. Please refer to our financial overview of AloStar Bank of Commerce for more details.
AloStar Bank of Commerce is a young bank (although they describe themselves "as really a bunch of old hands in the financial industry"), having been established in 2011 following the failure of Nexity Bank. The FDIC arranged for the newly-chartered Alostar to assume all of Nexity’s deposits, and Alostar continued to operate in the same fashion as Nexity: as an internet bank. Today, AloStar has assets in excess of $893 Million.
How the Savings Account Compare
When compared to the 143 Savings Accounts tracked by DepositAccounts.com that are available nationally, AloStar Bank of Commerce’s Savings APY currently ranks fourth.
The above rates are accurate as of 4/18/2016.
Edit 4/19/2016: AloStar corrected a few of the account details listed above.