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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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.
- A treasury rate lock goes two ways, just like a CD. You can't just deposit $100 a week into treasuries and withdraw whenever you want easily. You have to go to the secondary market, sell, wait for settlement, and won't always get the exact amount of cash you want, to the penny. Contrast that to an ATM deposit or withdrawal or EFT, which is super easy, quick and exact.
- You are correct that sometimes your HYSA becomes noncompetitive and you have to switch. This can be minimized by shopping well, but can't be completely avoided. If you want to keep a HYSA-like product in your brokerage account to avoid opening new accounts, I would understand that, and such products exist as sweep options with some brokerages. But, those products aren't treasury bonds (they might be bond funds though).
- Bonds are liquid, but going to the secondary market involves risk. If interest rates go up (which is recent news for long-term treasuries), the value of your bonds go down, and you could lose principal when you sell. That can't happen in a HYSA or if you hold to maturity. I don't like the idea of adding risk to the most risk-avoiding section of my portfolio. I have (corporate and muni) bonds, but I don't sell them. I just hold them until maturity. I don't have treasuries, usually buying CDs instead.
They've dropped from 5.5% to 5.0%, but they are still near the top of the heap of interest rates. Not at the very top, but close.
They've dropped from 5.5% to 5.0%, but they are still near the top of the heap of interest rates. Not at the very top, but close.
Then did $10 trial deposit from source bank and trial pull from Openbank ($50 minimum), both transactions took 5 days to show up on the account dashboard even though both transactions showed up being debited from source bank within a day.
Based on how they estimated the month to date interest (mostly on the initial deposit) if I calculated correctly, it took 5 days before the $500 started accruing interest. Not sure if these delays in the funds showing as 'deposited' is due to my account being new? This will be something to consider if you are thinking of transferring large balances to gain a small % increase - thats a lot of interest to lose.
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.
easily one of the most unstable countries in Europe in fact, if it wasn't for the kind of people in France and Germany who basically superfund, Spain, Portugal, Greece, and Italy that have net losses every year
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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.
Unless they download the 23andMe hack 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.
thats the only reason i looked into it before
thats the only reason i looked into it before
That's a benefit. Not the only one, but a biggie if you are in a state with high state income taxes.
In a low or no income tax state, it's a reason to buy CDs.
In a low or no income tax state, it's a reason to buy CDs.
Right now, the 1-year treasury yield is about 4.3%.
With a 3% state tax rate, you would need 4.43% from a CD to get the same tax-equivalent yield.
You won't find that in brokered CDs, but there are plenty of bank CDs that pay better than 4.43% for a year:
https://www.depositacco
I live in a state with 4% state income tax. Every time I've analyzed this, I've ended up buying a CD. But, I do check every time.
Admittedly, treasuries in a brokerage account are more convenient than bank CDs.
Right now, the 1-year treasury yield is about 4.3%.
With a 3% state tax rate, you would need 4.43% from a CD to get the same tax-equivalent yield.
You won't find that in brokered CDs, but there are plenty of bank CDs that pay better than 4.43% for a year:
https://www.depositacco
I live in a state with 4% state income tax. Every time I've analyzed this, I've ended up buying a CD. But, I do check every time.
Admittedly, treasuries in a brokerage account are more convenient than bank CDs.
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I'd wait to see if their HYSA rates stay near the top of the heap. There isn't enough historical data to know that yet.
I'm currently with flagstar/mybankingdirect at 5%. They're usually somewhere near the top.
Not leaving for 0.25%.
Are they on depositaccounts.com?
Having generic name,its become hard to search them!
https://www.depositacco