1.15% APY Online Savings Account Offered at Newtown Savings Bank

August 26th, 2010 Jonathan Chamberlain Leave a comment Go to comments

Do you mind electronic accounts? If you don’t, then you can take advantage of the high interest savings account offered by Newtown Savings Bank . It earns up to 1.475% of interest. Aside from that, it is also a high yield savings account which earns 1.150% APY every year. When it first came out, there were rumors that it was only offered locally, but updates on the savings account tell us that it’s now available across all states of the USA.

Apparently, the account has no service charges, but the downside to this is that the bank is giving no guarantee as to how long this current yield will last. Most savings accounts which are offered nationwide tend to fluctuate without warning. You would want to check the bank’s rate page first before opening a savings account with them because you’re never really sure when the rates are down.

There were also rumors that the savings account allowed you to withdraw as many times as you want within a month. Most of us who are familiar with the federal bank laws would know better, though. Sure enough, the bank clarified that it’s only allowing a cap of six withdrawals every month and posted this fact to their FAQs page.

One more limitation in the account features is the lack of check writing abilities. Holders also don’t have ATM cards, so you’ll be limited to electronic ACH transfers. Because it is mainly an electronic account, the bank doesn’t limit the number of linked third party accounts to your own e-account. If you have an online business which requires you to make daily transactions through the net, this is a good savings account to have.

What could also disturb you are the poor safety and soundness ratings of the bank. You might want to hold out on this one if you’re concerned about financial stability. They received only three stars from BauerFinancial.com and a one star out of five from Bankrate.com. Despite the poor reviews, Newtown Savings Bank is still a member of the FDIC. It is federally insured under FDIC Certificate #18199.

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