Customers Bank recently added a new savings product with a tempting yield to its lineup.
On Monday, the Pennsylvania bank launched a high-yield savings account offering a 2.5 percent annual percentage yield, or APY. The account is available online only and offered in all states except Alaska, Arizona, Hawaii and New Mexico.
Previously, Customers Bank was known for its Ascent Money Market Savings Account, which offers 2.25 percent APY. Before this week’s launch, Customers Bank’s highest-paying savings account (non-money market) was the Reserve Savings account, yielding 0.15 percent APY.
The high-yield savings account and the Ascent Money Market Savings Account are both available online only. While the Reserve Savings is advertised on the bank’s website, it is an in-branch-only product.
How the APY stacks up
The new account’s 2.5 percent APY puts it among the top-yielding savings accounts available nationwide. For instance, North American Savings Bank (NASB) is one of the few banks that has a higher APY on a savings account, offering a 2.53 percent APY (though the minimum balance requirement is a steep $50,000). Meanwhile, the national average yield on savings accounts is a mere 0.1 percent APY, according to Bankrate.
A few institutions, such as United Bank and Western State Bank, offer 2.5 percent APYs on money market accounts.
You can compare rates on savings accounts and money markets accounts on Bankrate to find the right account for you.
Requirements, minimums and fees
There is a $25,000 minimum deposit required to open the Customers Bank high-yield savings account. There is no minimum balance needed to avoid a fee, but the balance needed to earn the 2.5 percent APY is also $25,000. Interest is compounded and credited to your account monthly.
Unlike the Ascent Money Market Savings Account at Customers Bank, which has a guaranteed minimum rate of 2.25 percent APY through Dec. 31, the interest rate on the high-yield savings account can change at any time.
Variable rates on savings accounts and money market accounts are common. It’s less common to see a guaranteed rate for a certain period on liquid savings products. Because banks typically can change their rates at any time, it’s smart to periodically check yields to make sure your APY is still competitive.
You must go to the Customers Bank website to access your money from the high-yield savings account since it’s an online-only account.