bank rates

Better-Paying Savings Account In Boston

Boston-area savers can celebrate the new year with a savings account that pays 1.15% APY if they’re willing to cut through a little red tape – or red ribbon, because it is the holiday season.

Belmont Savings Bank in Belmont, Massachusetts, is paying one of the highest rates we’ve seen in a long time for a local savings deal with its PowerBlue Savings account.

But like so many other top-paying savings and money markets accounts, this one comes with strings attached. You can’t just open an account and start collecting your earnings.

Instead, you need to also open a PlatinumBlue Checking account and then meet a minimum monthly requirement. Granted, the requirements aren’t as stiff as you’d find with a rewards checking account, but it’s still extra work.

To earn the best rate on a PowerBlue Savings account, you’ll need to make a minimum deposit of $10 to open the account. Then you’ll need to open a PlatinumBlue Checking account with a minimum deposit of at least $250.

Then, to earn the best rate on your savings each month, you’ll need to make regular use of your PlatinumBlue Checking account. You must make a direct deposit of at least $250 into your checking account, or do five debit card transactions, or make five online bill payments, or keep a ridiculously high average daily balance of $10,000.

If you do just one of those things, you’ll earn 1.15% APY on your PowerBlue Savings account balance up to $100,000, and your ATM fees will be refunded. Higher balances earn 0.40% APY.

But if you drop the ball in a certain month and don’t use your checking account as planned, you’ll get hit with a $25 monthly checking service charge, have to pay your own ATM fees and earn just 0.25% on your savings account.

While the rate paid on the PowerBlue Savings account falls short of the 1.25% APY paid by national savings leader UFB Direct, those terms are far more onerous if you want to earn the best rate. Quite simply, you need to have $25,000 to leave in your UFB Direct account to earn the top rate. Lower balances earn just 0.20% APY.

What happened to the day savers could just deposit a couple hundred bucks into their savings account and earn a decent rate? Oh, yeah. The Federal Reserve.

If you opt for a PowerBlue Savings account at Belmont Savings Bank, you can open the account online or at one of its six locations in the Boston area.

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