Goldwater Bank Offers 4% Savings Account

Goldwater Bank, a small bank operating out of Scottsdale, Arizona is offering a very competitive 4% APY savings account. The minimum opening deposit is $1,500 and to get the listed rate you must keep at least $100 in the bank.

A customer service representative (CSR) stated that the rate was good until the end of the year although I'd verify this when opening an account (there's no discussion of this on the website).

The bank opened in 2007 and now has 14 employees and $29.8 million in deposits. It's too new to have a Bauer rating but it is FDIC insured (FDIC Certificate # 58405).

Acccount Opening

Once you fill in the online form, they'll mail you a signature card. You can mail a check with the signature card or do a wire transfer. They do not accept ACH transfers. Wire transfers are free.

Withdrawals

They only allow 6 withdrawals per quarter versus the usual six per month. There is a $20 fee for an outgoing wire transfer but it's free to request a cashier's check.

Interest Payments

They pay interest quarterly. If you withdraw money before the quarterly interest is paid, you lost all of the money accrued during the quarter,

How Does it Compare?

The Goldwater's 4% APY rate is tied withfor second according to the BestCashCow rate table with Amtrust Direct's e-Savings Account. Amtrust offers a smoother account opening process and has a $1 minimum balance. The rate is also below Everbank's 4.76% APY 3 month promo rate. Still, this is a very competitive rate.

Thanks to Bankdeals for passing this along.

See the best savings rates where you live here.