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Best Online Savings & Money Market Account Rates 2024

Best Online Savings & Money Market Account Rates

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Goldwater Bank Offers 4% Savings Account

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

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.


Another Hit for Banks - They May Need to Pay More to Replenish FDIC Fund

The FDIC's insurance may lose 17% of its capital as bank failures have drained it. It's expected to to the point where the FDIC may ask other banks to pay more to replenish the fund.

The FDIC's insurance may lose 17% of its capital as bank failures have drained it. It's expected to to the point where the FDIC may ask other banks to pay more to replenish the fund.

Bloomberg writes:

"The pace of bank closings is accelerating as financial firms have reported almost $495 billion in writedowns and credit losses since 2007. The FDIC's ``problem'' bank list grew by 18 percent in the first quarter from the fourth, to 90 banks with combined assets of $26.3 billion. A revised list is due this month. The insurance fund had $52.8 billion as of March 31.

The FDIC estimated its shutdown of California-based mortgage lender IndyMac, which filed to liquidate its assets last month, might drain as much as 15 percent from the fund. Seven other banks will take $1.16 billion, or about 2 percent.

The potential $9.16 billion in withdrawals would be the highest since the insurance account was created in 1933, Diane Ellis, the FDIC's associate director of financial-risk management, said in a telephone interview. Bank failures pulled a record $6.9 billion from the fund in 1988 during the savings- and-loan collapse, Ellis said."

Many analysts expect a rash of bank failures of the next coupe of years as the mortgage mess continues to wreck havoc on bank's balance sheets. This will further draw down the FDIC.

What happens if the FDIC insurance fund is drawn down to $0? In that case, the Federal Government will step in and allocate more money as it did with the S&L crisis in the 1980s.

While your FDIC insured money is safe, we could all be paying more in taxes, bank fees, interest rates on loans because of the poor lending decisions over the last 10 years.


Indymac Federal Savings Bank Not Effected by Bankruptcy Filing of Indymac Bankcorp

PASADENA, Calif., Aug 01, 2008 (BUSINESS WIRE) -- On Friday, August 1, 2008, IndyMac Bancorp, the former holding company of IndyMac Bank filed for bankruptcy protection under the U.S. Bankruptcy Code (Title 11, Chapter 7 U.S.C). This action has no effect on the operations of IndyMac Federal Bank, FSB, which came into existence on July 11, 2008, when IndyMac Bank was removed from its holding company, IndyMac Bancorp, and IndyMac Federal Bank was placed into conservatorship by the Federal Deposit Insurance Corporation (FDIC). Other than a similarity of name, IndyMac Federal Bank has no relationship, nor does it share any employees, with IndyMac Bancorp.

Indymac Federal Savings Bank Press Release:

PASADENA, Calif., Aug 01, 2008 (BUSINESS WIRE) -- On Friday, August 1, 2008, IndyMac Bancorp, the former holding company of IndyMac Bank filed for bankruptcy protection under the U.S. Bankruptcy Code (Title 11, Chapter 7 U.S.C). This action has no effect on the operations of IndyMac Federal Bank, FSB, which came into existence on July 11, 2008, when IndyMac Bank was removed from its holding company, IndyMac Bancorp, and IndyMac Federal Bank was placed into conservatorship by the Federal Deposit Insurance Corporation (FDIC). Other than a similarity of name, IndyMac Federal Bank has no relationship, nor does it share any employees, with IndyMac Bancorp.

Of IndyMac Bancorp's bankruptcy filing, IndyMac Federal Bank CEO John Bovenzi said, "The announcement by the former holding company of IndyMac Bank has no impact on IndyMac Federal Bank or its customers. Our customers will continue to receive the same value and personal service they have come to expect from IndyMac, which, due to its FDIC backing is one of the safest banks in America and a great place for our customers to keep their funds."

IndyMac Federal Bank remains under the FDIC's conservatorship and, as such, is backed by the FDIC's approximately $53 billion deposit insurance fund, which is further backstopped by the full faith and credit of the U.S. government. IndyMac Federal Bank is one of the safest banks in America and its customers should know that today's news has no effect on them, their deposits or their relationship with IndyMac Federal Bank. The FDIC's stated goal is to return the bank to the private ownership of safe and sound financial institutions within the next three months.