bank rates

First Trade Union 3.20% Savings Account

First Trade Union Bank’s “High and Mighty Savings Account” pays 3.20% APY with a $2,500 minimum balance.

That’s more than twice what you’ll earn from the average 6-month of 12-month CD, or money market account.

If your balance falls below $2,500 the interest rate falls to 0.75%, and if your balance falls below $250 you’ll have to pay a $2.50 monthly fee.

You also have to open the account with “new money,” you can’t transfer funds from another First Trade Union Bank account.

The Boston-based bank has four branches and earns a solid four out of five stars on Bankrate’s “Safe & Sound” rating system.

First Trade Union’s Web site says: “We process applications for deposit accounts and loans only from those individuals residing in Massachusetts, Rhode Island, Connecticut, New York and Southern New Hampshire with a valid tax identification number. If you have any further questions, please contact us by email or by calling the Customer Care Center at 1-800-242-0272.”

But when you call the Customer Care Center it doesn’t know anything about that restriction and says the offer is nationwide.

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Comments (10)
1 Star2 Stars3 Stars4 Stars5 Stars (10 votes, average: 4.90 out of 5)
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10 Existing Comments
  1. BankVibe said:
    on March 7th at 09:23 pm

    This is a sweet deal. Way better than the current online savings account offers. Anyone know of any similar yields on the west coast?

  2. dealster81 said:
    on March 8th at 12:49 pm

    Good deal, too bad it’s not nationwide.

  3. 1uscs said:
    on March 9th at 01:48 am

    Here’s a west coast bank to look at, Centennial Bank in Fountain Valley, Ca. A sample of their Variable Rate Savings Accounts list for example, 25-50K is 2.79 percent, 50-100K is 3.05 percent and over 100K is 3.3 percent. I just left DollarSavingsDirect as their rate went down to 2.25 percent and am considering Centennial Bank.

  4. bklyngrrl5 said:
    on March 9th at 12:43 pm

    Just called First Trade Union to inquire about limitations on out of state account holders. According to the rep., residents from ALL states can open an account. However, it is important to keep in mind that the 3.15% is subject to change at the bank’s discretion. So you can open an account today to take advantage of the rate, and tomorrow, the bank could drop the rate to the market norm.
    But it is a great rate!

  5. BloggingBanks said:
    on March 10th at 04:20 am

    I would use extreme caution in opening new savings accounts which have high current yields. These are “teaser rates”, which will most certainly be cut. Instead buy Certificates of deposit.

  6. RateRunner said:
    on March 10th at 09:58 am

    Bklyngrrl5:

    Great catch. The bank’s Web site couldn’t be more clear. Here’s what it says:

    “We process applications for deposit accounts and loans only from those individuals residing in Massachusetts, Rhode Island, Connecticut, New York and Southern New Hampshire with a valid tax identification number. If you have any further questions, please contact us by email or by calling the Customer Care Center at 1-800-242-0272.”

    But after I saw your comment I called customer care and they never heard of that restriction. We were told First Trade will take deposits from anywhere. I’ll change the post to reflect that.

  7. Elliot said:
    on March 15th at 02:28 pm

    The rate just got knocked down to 3.04

  8. Len said:
    on March 24th at 02:57 pm

    Just opened an account here and it’s kind of cumbersome relative to other online savings accounts like E*Trade, HSBC, Dollar Savings, etc. Although you open the account online, you have to do all the followup including your initial deposit via snail mail. Now I’m trying to set up linked accounts to my main checking account at another bank so I can do transfers between accounts at external banks. There web site says this is an option that is doable, but it could be a show stopper if I can’t do it. I’ll update this info when all is said and done.

  9. al said:
    on March 27th at 07:24 pm

    there is no access to external accounts at this time. web states target for july,09. you must open checking acct. 10.00 and hopefully they will send checks, but haven’t received them yet. transfer out at this time is only possible by mail or thru your linked checking acct.by check

  10. walt said:
    on April 2nd at 04:14 pm

    I live in CA and I have this account. ACH transfers must originate at the other institution. We shall see if they drop the rate quickly once they have built up deposits, as many others (EverBank, DollarDirect, Capital1, WaMu) have.