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Earn 2.50% With This Savings Account

Posted in Savings Accounts by DealMaven
August 2, 2009 08:15 AM - 6 Comments

1st Constitution Direct has a unique deal for short-term savings.

Its Direct Super Savings Internet Special pays a fixed 2.50% APY for the first three months.

After that the rate drops to a very respectable 2.25% APY — although there are no guarantees on how long that will last because the rate becomes variable and can change.

With the average 3-month CD paying a pathetic 0.50%, this is a great alternative for short-term savings.

If 1st Constitution doesn’t slash the rate after the first three months it could even be a good alternative for 12-month CDs, which are paying an average rate of just over 1%.

To qualify for this return you must maintain a minimum balance of $10,000. (Anything less earns 1.60% APY.)

You can open an account online, from anywhere in the country, and money can be transferred to your new savings account from your current checking account.

1st Constitution Direct is the online division of 1st Constitution Bank, which has 11 branches in northern New Jersey.

Click here to compare its deal with the savings and money market rates available from dozens of other banks in our extensive database

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Comments (6)
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  1. Cash Flow Moe said:
    on August 2nd at 08:10 pm

    There are lots of good deals for those that look. I have a rewards checking account with Renasant Bank that pays 4.00% with no minimums. There are a few requirements each month that are easily attainable such as use of a debit card, direct deposit, paperless statements, etc. If you check with banks in your area, I bet you can find a similar deal.

  2. are we stupid said:
    on August 3rd at 09:42 am

    are we stupid for a rate of 1% for the ceos can give themselves millions you all should of went under.

  3. Satsu said:
    on August 5th at 08:56 am

    I tried to open the account online couple of days ago. Yesterday, I got an email saying they could not verify the information. They did not say what’s wrong with the information that I provided and they say they do not disclose anything. I called up the customer service but no use. I would never apply with them again….

  4. Catso said:
    on August 9th at 01:22 pm

    There website doesn’t work properly. Be forewarned.

  5. DealMaven said:
    on August 18th at 10:36 am

    1st Constitution Direct has slashed the yield it’s paying on savings accounts. The APY is now 2.05% — a sharp drop from the previous 2.50%. But if you compare current savings rates, you’ll find it is still one of the highest-paying accounts available. Tennessee Commerce Bank in Franklin, Tenn. leads by a mile, paying 2.30% APY.

  6. Jo said:
    on September 2nd at 01:00 pm

    Ist Constitution’s website looks like something that has been put together by a scam artist. I have tried opening accounts with several of the banks offering the highest rates on savings, and the experience has not been good. They are either snowed under with problems, or may be are short staffed. I had to call Discover Bank four times, and even wrote them a letter, because I sent them a check which simply disappeared. We eventually got the bottom of it, but not without a little anxiety. BankofInternet don’t seem to have the best customer handling skills. Be wary of teaser rates, when interest is paid, and pay particular attention to efficiency. This is a bad time for banks and rate chasers opening and closing accounts has probably added to their already large workload. For anyone interested, (and this is not a plug) Anglo Irish were recently offering 3% for 6 months, and they have an Irish government guarantee. I was a customer for many years and they ran a fairly tight ship. I think that guarantee expires in 2010.

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