bank rates

TIAA Direct Shuts Out New Savers

Existing customers can still take advantage of its good rates.If you haven’t opened an account with TIAA Direct, which for months has offered the best nationally available savings and money market account rates, you won’t be able to do so anytime soon.

The online bank has posted a note on its website saying it won’t accept new customers for the foreseeable future.

The accounts, which launched in February, were originally planned as a pilot program for employees, family and friends. But it also allowed savers everywhere to sign up, too.

While EverBank and UFB Direct eventually joined TIAA Direct in offering 1.25% APY on MMAs, TIAA Direct’s savings rate had remained unrivaled. Plus the bank only required a $25 minimum deposit to open an account, charged no fees and paid the top rate on all balances.

Now TIAA Direct is putting new customer accounts on hold.

“We’ve just concluded a successful pilot and are taking some time to enhance our processes and continue to improve the customer experience,” the bank said in a statement.

The bank will eventually allow new customers to sign up, but no date has been set.

In the interim, current customers can open new accounts.

So if someone has a savings account, they can still open a money market account or CD.

And existing savings and MMA customer will still earn 1.25% APY.

TIAA Direct is a division of TIAA-CREF, which is best known for providing retirement services to teachers.

If you aren’t a TIAA Direct customer, you can get the best rates from EverBank and UFB Direct.

EverBank (www.everbank.com) guarantees the rate of its Yield Pledge Money Market for six months. Then the rate will drop to the rate on a standard MMA, which currently is 0.76%.

It takes a $1,500 minimum deposit to open an account, and the highest rate is available on balances to $50,000. Balances above that earn 0.76% APY.

If you don’t keep at least $5,000 in your account, you’ll be charged an $8.95 monthly fee by the bank, based in Jacksonville, Fla.

You can earn the same rate at UFB Direct (www.ufbdirect.com), but you need a $5,000 minimum deposit to open a money market. Any money in your account earns interest, but if you don’t keep at least $5,000 in the account, you’ll pay a $10 monthly fee.

The rate is good on balances to $250,000. Balances above that amount earn 0.25% APY. UFB Direct is a division of BofI Federal Bank, based in San Diego

On the savings front, the highest rate is now being paid by CIT Bank (www.bankoncit.com). The bank pays 1.05% APY on balances of at least $25,000. Balances below that amount earn 0.90% APY.

The account has no minimum deposit requirement.

Its parent, CIT Group, headquartered in New York, provides lending, leasing and advisory services to small and midsize businesses.

When searching for a new account, make sure to check out the top money market accounts in our extensive database.

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  1. Brendan said:
    on July 24th at 11:11 am

    I opened an account with them in April and so far so good. The rate hasn’t dropped in 3 months so I put my entire Capital One saving account money in there. 1.25% is better than 0.60%