Openbank.us is offering their
Openbank by Santander: High Yield Savings Account: Earn 5.25% APY (
Annual Percentage Yield) when you
open an account and deposit a
minimum of $500 to your account (
additional requirements listed below) valid for
New Openbank Customers only.
Thanks to community member
iyoury for finding this deal
Note, ensure that this offer is active/offered in your area when you apply your zip code.
- FDIC Insured
- No fees/hidden charges
- Top Tier Rate: 11x National Average
How Do I Open a Openbank High Yield Savings account?- Make a minimum initial deposit of $500
- Be at least 18 years old
- Have a U.S. mobile phone number
- Have a smartphone or tablet enabled with face or fingerprint identification
- Download the Openbank app onto that smartphone or tablet (which will become your trusted mobile device)
- Be a U.S. Citizen or a U.S. Resident Alien with a valid residential address in our current service area (check your ZIP code here to see if you're eligible)
Top Comments
CDs are great for those in a situation where they are helpful, but they can't always replace a HYSA.
CDs are only useful if:
- You have a decent, fixed chunk of cash now.
- You are really, really sure you won't need the money before maturity.
If not, it's not the product for you.
Personally, I have both. I regularly deposit into an HYSA (CDs suck for that). When the balance gets big enough, I may open a new CD.
That said, I'm not buying into this HYSA. This smacks me as likely a promo rate they plan on killing once they are more established in the USA.
Better off with an outfit that has been near the top of the highest-apy-savings-accounts for several years, showing a longer-term strategy of being near the top and staying there.
But like the other comment said, a HYSA isn't gonna cut it now that the Fed is starting to lower rates. This deal would be slick if it were a CD, not a HYSA.
"We're sorry. Openbank isn't available there yet. We're planning to bring High Yield Savings to your area soon."
144 Comments
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FDIC thats what matters. I wonder when people talk abotu banks failing. Banks usually get taken over. If the FDIC takes posession of a bank it happens on a SAT usually and by monday everything is working. So whats the issue really? I would not bother to chase this one since I am getting close to that same amount with my current.
Last December, Wells Fargo offered a platinum savings account with a locked in rate of 4.5% for 12 months, although it required "new" money, not just shifting money from your current account to it. Of course at the time, it was easy to find a savings account with rates over 5% but if you wanted to lock in the same rate for a year without doing a CD, it was an option.
They might assign your accounts to another bank, which immediately reduces your rate.
They might pay a CD and interest earned to date immediately, not letting it go to maturity (essentially calling a non callable CD). That can suck if rates went down and you can't get a replacement at the same rate. The FDIC has a lot of leeway in that.
Yes, you won't lose principal or interest earned to date, but the future of those accounts are not guaranteed.
And, there's probably going to be annoying forms and paperwork.
CDs are great for those in a situation where they are helpful, but they can't always replace a HYSA.
CDs are only useful if:
- You have a decent, fixed chunk of cash now.
- You are really, really sure you won't need the money before maturity.
If not, it's not the product for you.
Personally, I have both. I regularly deposit into an HYSA (CDs suck for that). When the balance gets big enough, I may open a new CD.
That said, I'm not buying into this HYSA. This smacks me as likely a promo rate they plan on killing once they are more established in the USA.
Better off with an outfit that has been near the top of the highest-apy-savings-accounts for several years, showing a longer-term strategy of being near the top and staying there.
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But I've never tried it either, so maybe...nah probably not gonna happen 😂
You know all biometric authentication happens on the phone. The phone verifies who you are for the app. The app itself doesn't get access to your actual biometric data.
1) Short term treasuries aren't paying 5.25% - they are under 5%.
2) Opening a savings account isn't harder than opening a brokerage account, and buying a bond isn't easier than depositing to your savings account. Not seeing the convenience.
3) Bonds are not savings accounts and don't work for the same purposes. They are more similar to CDs.
4) The FDIC is just as guaranteed as a treasury, as long as you are under $250k.
2) Opening an account for a savings rate that can change on a whim ends up being very inconcenient in the long term. 1 brokerage account vs multiple savings accounts to find the best interest rate is much more convenient. I've done both scenarios
3) Bonds are sellable and plenty liquid, I don't fully understand the difference unless we're talking about tax rates, which are better on treasuries and even better on municipals.
4) Valid point for those below <250k.
1) Short term treasuries aren't paying 5.25% - they are under 5%.
2) Opening a savings account isn't harder than opening a brokerage account, and buying a bond isn't easier than depositing to your savings account. Not seeing the convenience.
3) Bonds are not savings accounts and don't work for the same purposes. They are more similar to CDs.
4) The FDIC is just as guaranteed as a treasury, as long as you are under $250k.
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