Goldwater Bank Offers 4% Savings Account

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Goldwater Bank, a new, small bank out of Scottsdale, Arizona is offering a very competitive 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.


Washington Mutual Raises Online Savings Rate to 4%

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WaMu now offers an online savings account with 4% APY.

On September 23, 2008, WaMu has raised their online savings rate to 4%, which is the best online savings offer with no minimum balance.

To get the 4% savings account you will need to first open a free checking account and then link the savings account to it.  This can all be done together online.

Washington Mutual, however, is a very troubled institution and is considered by many to be unlikely to survive. Depositors are therefore reminded that especially in this case to keep deposits below FDIC limits.

Please note that WaMu has not adjusted all of the copy on its site and may still be listing the rate as 3.75% APY in some places.

For more information, see the BestCashCow.com savings and money market rate tables.


Online Banking Not Being Adopted by Younger Users

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Online banking has been a hit with Gen X consumers but not so much so with Gen Y. Why?

Who's Banking OnlineOnline banking has been a hit with Gen X consumers but not so much so with Gen Y.  Why?  Most likely because Gen Y (15-29 year olds) don't have the money to make it interesting.  Would you be interested in logging in to see a balance of $200?  How much can you really do if you don't have the funds yet to actively manage?

This, of course, makes me wonder about the future of services like Mint.com.  How can online banking on steroids really take route if plain old online banking isn't being embraced by the most plugged-in generation?

Maybe all of this will change once Gen Y start to accumulate their own money. But I think by then, there will be new services competing for their dollars.

Get the best online savings rates here.