SFGI Direct Offers 2.25% APY on High Interest Savings Account

Rate information contained on this page may have changed. Please find latest savings rates.

SFGI Direct, a division of Summit Community Bank is offering a high interest savings accoung paying 2.5% APY. That's currently the best savings rate on the BestCashCow rate tables.

SFGI Direct, a division of Summit Community Bank is offering a high interest savings account paying 2.25% APY. That's currently one of the best savings rates on the BestCashCow rate tables.

Summit Financial Group, Inc., the owner of Summit Community Bank, is a financial holding company which provides community banking and insurance services. Summit’s community banking operations consist of 15 banking offices located in the Eastern Panhandle and South Central regions of West Virginia and the Shenandoah Valley and Northern regions of Virginia.  As of June 30, 2009, Summit Community Bank had $1.5 billion in assets.

High Yield Savings Account

SFGI Direct's only offering at the moment is their high yield savings account. Key features include:

  • Minimum initial deposit of $500
  • Initial deposit limit of $25,000. You can deposit more using additional deposits.
  • Funding only via electronic ACH.
  • Interest accrues daily and credited monthly.
  • No beneficiaries or IRA accounts.
  • Joint accounts are available.

Account Opening and Funding

When opening an account, you will be asked for your U.S. Social Security number and a valid form of identification including: Driver’s license, State ID, Military ID or Passport. You will also need to provide personal information, including your name, social security number, date of birth, physical address, telephone number, former mailing address(es), and employment information.  If you are not a U.S. Citizen or U.S. Resident Alien and do not have this information, you will be unable to open an account.

Once your account is opened, the only way to fund it is via an electronic ACH transfer from another bank account. SFGI Direct will validate the sending account via to small micro deposits. 

 SFGI Direct Safety and Soundness

SFGI Direct's parent Summit Community Bank is an FDIC insured institution. Bauer Financial gives it 2 out of 5 stars (Problematic)  for its safety and soundness which is actually rather low for a community bank. As always, be sure to stay below FDIC insurance limits of $250,000 per person per bank.

Please share your experience with SFGI Direct below. 


Capital One Direct Offers $50 Money Market and Savings Bonus

Rate information contained on this page may have changed. Please find latest savings rates.

Capital One Direct Banking is offering another $50 bonus to open a savings account or money market account online. To get the bonus you need to open an account and fund it with at least $10,000 by 11/25/2009.

Capital One Direct Banking is offering another $50 bonus to open a savings account or money market account online. To get the bonus you need to open an account and fund it with at least $10,000 by 11/25/2009. 

Details of the offer include:

  • Online available to accounts opened online
  • Must have opened account with offer code SAVER50DF and funded it with $10,000 by 11/25/2009
  • This account must remain open 4-8 weeks after 11/25/2009 during which time the bonus will be deposited into your account.

The savings and money market accounts are currently paying 1.60% APY which is currently the 20th amongst the best savings account rates on the BestCashCow rate tables. That's competitive.

Let's do a little math. If you deposit $10,000 and get a $50 bonus, that's a .5% return. Add that to the 1.6% APY and you get an 2.1% APY, which would put it third on the rate table for return. If you deposit more money then that return will go down.

Capital One also has a Costco account. Costco members can open a savings account that currently yields 1.75% APY instead of 1.6% APY. With that bonus, the Capital One account would have the top 1 year APY for deposits of $10,000.

ACH Transfers Improved

As reported by BankDeals, Capital One Direct has also improved the speed of its incoming ACH transfers. Incoming transfers now post the next day as long as the transfer is made for 7:00 PM. Outgoing transfers though still take 2-4 business days. To me, the outgoing transfer speed is the bigger issue. If I need the cash, I want it quick. I'm less concerned about losing a day or two of  interest on the way in.

Please share any questions or experiences you've had with this account and bonus.


Money Funds Returning Close to 0% - Consider a Savings Account

Rate information contained on this page may have changed. Please find latest savings rates.

Here's a Wall Street Journal Article that's stating the obvious if you read BestCashCow. Money market funds, not money market accounts, are returning close to 0%. On BestCashCow, the highest money market fund rate is W&R advisors with a 0.67% 7-day trailing average. With inflation, or deflation, the returns are a bit better (add another 1%) but still well below the return on an FDIC insured savings account, money market account, or CD.

The Journal article even suggests short-term bond funds although the article states that last year, "Vanguard Short-Term Investment Grade took a beating—returning a negative 6.9% in the six months through November."

That's not where I want to park my "safe" cash. Go with a savings account or a CD. And if you have several million dollars to invest and are worried about FDIC insurance limits and don't want to run around opening 10 different bank accounts, then consider the CDARS program. The Certificate of Deposit Account Registry allows individuals to get up to $50,000,000 in FDIC insurance from a single bank when opening a CD.