Online Savings Account rate check for end of July, 2009

August 1st, 2009 · No Comments

Continuing their quickly dropping trend, Ally Bank has dropped their OSA yield down to a 1.75% APY from the 1.85% it was less than two weeks ago.  However, the yield on the No Penalty CD held constant at 1.90% APY. a point of comparison though, the OSA rate is still higher than my other existing banks:

  • FNBO Direct is at 1.50% APY
  • ING Direct is at 1.40% APY
  • ATFCU (my local credit union) is at 0.71% APY
  • Wachovia “Premium Savings” is at 0.05% APY

A quick check at, shows there are only 3 national banks offering rates higher than Ally’s current rate: WTDirect @ 1.76% APY but with a $10,000 minimum balance, EverBank @ 1.85% with either a $8.95/month fee or a minimum balance of $5,000, or SFGI Direct @ 2.25% APY and no minimum.  So who is this SFGI Direct?

SFGI Direct is a division of Summit Community Bank, which is owned by Summit Financial Group, Inc, which has 15 banking offices across Virginia and West Virginia.  They trade on NASDAQ under the symbol SMMF and have a market value of $57.7M USD.  From the news I’ve been able to dig up, Summit Community Bank has recently had a rather high level of non-performing loans – a ratio of 5.45%, relative to tangible assets, as of March 31, 2009.  While, the FDIC gives them a “Well Capitalized” rating, it seems that they’re definitely trying to attract deposits by offering the highest nationally available OSA yield.  They are a member of FDIC with Fed ID 2372774.  I have no idea of the history of their offered yields, and the non-performing loans situation makes me just a tad nervous, so for now I’m not even considering opening an account with them.

Tags: Savings

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