If you’re looking for a high-yield savings account with a competitive interest rate, the NASB High Rate Savings Account might be an option to consider. In this review, we’ll take a closer look at how the account works, its benefits, and the potential drawbacks to help you determine if it’s the right fit for your financial goals.
What Is the NASB High Rate Savings Account?
The North American Savings Bank (NASB) High Rate Savings Account is designed for those with larger savings balances, offering a higher-than-average annual percentage yield (APY). This account provides FDIC-insured savings with easy access, but it requires a minimum deposit of $50,000 to earn the competitive 0.35% APY. Balances under $50,000 earn a much lower APY of 0.10%.
NASB is based in Kansas City, Missouri, but its online platform makes it accessible to individuals nationwide. The account is ideal for those looking to earn more on their savings without locking the funds into a certificate of deposit (CD) or other fixed-term investments.
Key Features of the NASB High Rate Savings Account
- APY: Earn 0.35% APY on balances between $50,000 and $5,000,000 (fixed for six months).
- No Monthly Fees: No service charges for maintaining the account.
- Easy Withdrawals: Free online transfers and ATM access at NASB or U.S. Bank ATMs.
- FDIC Insurance: Deposits are insured up to $250,000 per depositor, per institution.
- Online and Mobile Banking: Convenient access through NASB’s mobile app and website.
What Makes the NASB High Rate Savings Account Attractive?
Competitive Interest Rate
The NASB High Rate Savings Account stands out with its 0.35% APY on large balances, making it a top contender among savings accounts, especially when compared to traditional banks offering much lower rates. For individuals with significant savings who don’t need immediate access, this is a great option for growing your money safely.
For example, if you have a large sum saved for a future goal like a down payment on a house, this account offers a solid return without the risk of market fluctuations or the commitment of a CD.
FDIC Insurance
Another major benefit of the NASB High Rate Savings Account is the FDIC insurance, which ensures your deposits up to $250,000 are safe. In the unlikely event that NASB encounters financial trouble, your money will be protected by the federal government.
Easy Access to Funds
While this is a high-yield savings account, NASB offers flexibility. You can access your funds online or through the mobile app, making it convenient to manage your money anytime, anywhere. Plus, you can make withdrawals from NASB or U.S. Bank ATMs for free, though there is a $3 fee for withdrawals from non-network ATMs.
Potential Downsides of the NASB High Rate Savings Account
High Minimum Deposit Requirement
The biggest downside of the NASB High Rate Savings Account is the requirement to deposit a minimum of $50,000 to earn the 0.35% APY. For those with smaller savings, this account may not be the most beneficial, as balances under $50,000 will only earn a much lower APY of 0.10%.
Additionally, if your balance drops below $50,000 after opening the account, the interest rate will drop, which can be frustrating if you’re not able to maintain that higher balance.
Limited Branch Availability
NASB only has physical branches in Missouri, which may be a downside for those who prefer in-person banking. However, the bank’s online and mobile banking platforms provide extensive access to manage your account, making this a minor inconvenience for most customers.
Withdrawal Limitations
While the NASB High Rate Savings Account offers flexible access, there is a $250,000 withdrawal limit every 30 days. For most people, this won’t be an issue, but if you plan to store a large amount of money in the account and may need to access it all at once, this limitation could be a consideration.
Additionally, if you close the account within 90 days of opening, there is a $30 closure fee. This fee can easily offset any interest earned if you’re only keeping the account open for a short time.
How to Open an NASB High Rate Savings Account
Opening an account is simple and can be done online. You’ll need to provide personal information, including your name, address, Social Security number, and details about your employment and income. Additionally, you’ll need to fund your account with at least $50,000 to take advantage of the high APY.
Once your account is set up, you’ll have access to NASB’s online and mobile banking services, including digital check deposits and easy account management.
How to Use the NASB High Rate Savings Account
The NASB High Rate Savings Account is best used as a place to park large sums of money for short- to medium-term goals. It’s not designed for daily transactions, so it’s not ideal for paying bills or making point-of-sale purchases. However, it’s a great option for saving for future purchases or building an emergency fund.
Deposits and transfers are free, and you can withdraw funds from ATMs or via online transfers. The added benefit of having a mobile app allows you to deposit checks remotely, which adds convenience for managing your funds.
The Verdict: Is the NASB High Rate Savings Account Right for You?
The NASB High Rate Savings Account is a great option for those with significant savings who are looking to earn a competitive return without locking their funds away in a CD. With an attractive interest rate of 0.35% APY on balances over $50,000, FDIC insurance, and easy access to funds, it’s an ideal short-term savings solution for larger balances.
However, the high minimum deposit requirement and potential for a reduced interest rate if your balance falls below $50,000 may make it less appealing for those with smaller amounts to save. If you meet the balance requirement and are looking for a safe, flexible way to earn more on your savings, this account is worth considering.
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