Update 8/20/19: rate has been further decreased to 2.15%.
Rate has been further decreased to 2.3% APY
Update 6/12/19: Readers note that EBSB has made an unannounced rate drop from 2.5% to 2.37%. Account is not available for signup, regardless, but those with the account should keep this in mind when deciding whether to leave their money there.
Actually it’s still unavailable, I saw the option to open the statement savings account but you need the high yield statement savings for the 2.5% APY rate. Sorry for the confusion.
Update 2/21/19: Deal is available again. Hat tip to readers Schmekel
Update 1/10/19: Currently unavailable.
Update 12/11/18: This offer was around for a few weeks in October, and they’ve now brought the offer back again.
Offer at a glance
- Interest Rate: 2.5% APY
- Minimum Balance: $5,000
- Maximum Balance: $1,000,000
- Availability: Nationwide?
- Hard/soft pull: Unknown
- ChexSystems: Unknown
- Credit card funding: None
- Early account termination: $25 if closed within 180 days
- Monthly fees: None
- U.S. Citizen: Yes
- Insured: FDIC & DIF
The Offer
- EBSB Direct is offering 2.5% APY on balances $5,000 to $1,000,000
Avoiding Fees
This account has no monthly fees to worry about. There is an early account termination fee of $25 if the account is closed within 180 days.
Our Verdict
This is the current best high yield savings account. It isn’t 100% clear if it’s available nationwide or not as some people have reported being denied due to the product being unavailable out of state, only to be told that they should have been approved. Some people have also suggested in the past if EBSB raise rates they don’t raise those rates for existing customers so something to keep in mind. This is 0.25% higher than the next best rate though, so might be worth considering for some.
Hat tip to EDUARDO BAEZ
On 3/24 I noticed that the account showed .62% for a balance <$5K and can't look up what the % is today having less than the $5K balance (shows 0%). They clearly are not interested in online only savings accounts any longer and I was not pleased to be told that they care to focus on local branch business. This came about when I inquired why EBSB.com rates are higher than EBSBdirect.com rates and if they could match it. Oh well, no care for my business and generally non-competitive rates means I have moved my money out.
I agree, I moved my money out long ago. Keeping a penny in there just to piss them off.
Now down to 1.09% – clearly not going to maintain rate leadership, so time to close.
Starting from February 2020, the interest rate dropped from 1.92% to 1.69%.
Hi Eduardo, any updates on the interest rate for March?
Another rate drop. Now 2.15%. Run for the hills.
cc
William Charles
Updated, thanks
Doc, I just noticed that the interest rate is now 2.30%. APY would be around 2.32 or 2.33% now. Again, announced. Just pulled all the remaining balance. Will close it once the external transfer is complete.
Thanks
Oops just saw the typo. Unannounced.
My latest statement (on 06/30/19) still has an APY of 2.48%. Is this a false alarm? I can’t see my current APY as I’ve moved the money out earlier this month already (which results in a zero APY).
My latest statement (dated 6/30/2019; covers 91 days) showed an APY of 2.47% — but I’m sure it’s high because of a blend of 2.5 months at 2.5% and 0.5 months at 2.4%. The bad thing is now I see my account says the rate is 2.3%…
How disappointing. I liked this bank too, especially its unlimited deposit insurance.
Oh well, onto the next one.
Which would the next one? There are a few other that provide 2.50% apy but which is the best?
@James I was going to open an account at Vio Bank. It’s 2.52% and a soft pull. You have to have $100 in the account which is better than the $5,000 min you had to have at EBSB. Someone posted that there was a $5,000 limit of pushes and pulls, but if you read the terms, that is not the case. Within the Vio interface, yes there is a $5,000/day limit, but you can do pulls and pushes from your external bank and are not limited to the $5K limit.
“Pitchforks for sale, get your pitchforks!”
Got mine, see you guys at the branch.
I just called EBSB as well. The guy was pretty adamant about it and said I agreed to them not having to inform the rate change in advance when opened the account. I was told the monthly withdrawal limit is $150k. Am moving all my funds to one of the other banks that offer higher rates from DoC’s recent high yield savings accounts post just to protest, probably CIT I’ve had no issues with for a few years.
The info I received directly from EBSB over the phone this morning (6/13) is that there are no daily or monthly ACH limits. The rep literally said “if you have $1 million available in your account you can ACH all of it out in one transaction”.
Just logged into my EBSB account and saw the rate dropped from 2.47% to 2.37% (probably 2.4% APY). I’m going to pull what’s in there to Redneck/All America for now (which I understand will also decrease too, but at least I like them!)
Which of the few 2.5% APY accounts should I open to replace this?
Now that several banks are dropping out of 2.5% I am reluctant to jump into any new ones. Perhaps a CD to lock in these rates for a year or so is a wise choice now?
Yes, you are probably right. I don’t want the hassle of opening a new 2.5+ and then having to empty it right away.
I can’t see locking in a rate of 3% when there are 4% accounts available. I’d rather keep the funds liquid and open an account at somewhere like Vio Bank (2.52%). Then the money is available for opening accounts that offer bonuses.
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