I know many of us who opened the 6 month installment account will be reaching the maturity date soon. We can also use this thread to discuss ease of withdrawing and next strategies.
Edit: Pulling some helpful information from the old thread--
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mh83 said:
There is no penalty fee for missed payments. Missed payments will result in the amount at maturity being different from the original contract amount.
The Vacation/Christmas Club account requires payments to be made every two weeks by auto-transfer from a NewBank account (the free checking account qualifies for this purpose). Interest accrues on the balance in the account each day but is only paid at maturity. The early withdrawal penalty is 14 days interest.
The Education and Installment Club accounts require payments to be made once per month by auto-transfer from a NewBank account (the free checking account qualifies for this purpose). Interest accrues on the balance in the account each day but is only paid at maturity. The early withdrawal penalty is half of the interest earned.
Strabo said:
Thank you for contacting the FDIC. Specifically, you asked the following:
“Is NewBank's 'Christmas / Vacation Club Account' covered by the FDIC?”
FDIC insurance covers all types of deposits received at an insured bank, including deposits in checking, NOW, and savings accounts, money market deposit accounts, and time deposits such as certificates of deposit (CDs).
According to NewBank's web site, NewBank's Christmas/Vacation Club account is a time deposit account. This information can be found on NewBank's web site at: <http://www.newbankusa.com/new_page.php?code=personal_banking_time_deposit_#Christmas>
The basic insurance amount is $250,000 per depositor, per insured bank.
This insurance will last until December 31st, 2009.
Message edited by: 2stepsbehind on 2009-10-15 02:04:21 CDT
Another case where archiving renders an interesting FWF thread essentially useless.
I can't find any online rate sheet for them at http://www.newbankusa.com/. Unless someone can find one or goes to a branch, scans a current rate sheet, and uploads it here, interest will be limited. In fact interest may very well have gone down.
Message edited by: glxpass on 2009-10-01 16:15:52 CDT
on the homepage they reference the 6 month 6.5% club account.
glxpass said:Another case where archiving renders an interesting FWF thread essentially useless.
I can't find any online rate sheet for them at http://www.newbankusa.com/. Unless someone can find one or goes to a branch, scans a current rate sheet, and uploads it here, interest will be limited. In fact interest may very well have gone down.
nymgiants said:on the homepage they reference the 6 month 6.5% club account.
glxpass said:Another case where archiving renders an interesting FWF thread essentially useless.
I can't find any online rate sheet for them at http://www.newbankusa.com/. Unless someone can find one or goes to a branch, scans a current rate sheet, and uploads it here, interest will be limited. In fact interest may very well have gone down. I see, thanks. It's referenced in the news box where items roll-up. Here's a static link to the news items. You can see some of the dates are quite old, so it's uncertain if the rates are still current. Here's the unlinked information on that page. Sorry for the not-so-great formatting:
No Title Section Date View
9 SBA Loan Seminar News 2009-08-27 23
8 Grand Opening New Jersey Branch !!! News 2009-02-23 286
7 MOBILE BANKING SERVICE News 2008-03-18 198
6 EDUCATION CLUB SAVINGS 7.00% APY News 2008-02-11 754
5 Summer Vacation/Christmas Club Savings News 2008-02-11 458
4 SWEEP TRANSFER News 2008-02-11 205
3 NewBank is now a SBA Preferred Lender! News 2007-12-07 135
2 e-Deposit Service! News 2007-10-26 91
1 NewBank is Open as of September 29, 2006... News 2007-10-26 117
I still wish they had an actual rate page.
Message edited by: glxpass on 2009-10-01 18:27:28 CDT
I know many of us who opened the 6 month installment account will be reaching the maturity date soon. We can also use this thread to discuss ease of withdrawing and next strategies.
Message edited by: ussrfw on 2009-10-02 00:27:41 CDT
Yes. They restricted it to 10 after a few weeks of the fwf/bankdeals effect (mh83 noted that one of the tellers mentioned that some individuals were opening 50 such accounts). I wonder though if they would be more lenient for those who are repeat customers.
My 6.50% Club accounts matured last week. I took a screenshot of the accounts before I closed them as evidence of the nutty things we do for a decent rate. Twenty-two accounts at one bank is my personal record.
I didn’t encounter any problems closing the accounts. Unlike at account opening, only two documents per account needed to be prepared – the account closure form and the withdrawal slip.
Currently, all NewBank installment savings account rates remain unchanged, but the number of accounts allowed per customer has become more stringent. They said they’ve had to implement a limit of one account per account type per customer. That is, a person can only have one Vacation Club account, one Education Club account, and one Installment Club account.
The Vacation Club account still has a maximum contract amount of 5K. However, both the Education Club and Installment Club accounts have unlimited contract amounts.
They’ve also raised the rates on the MMA which if used as the funding source for the ISA makes the combined effective yield very competitive. As an example, for the 12-Month term, combining the 4.60% APY ISA and the 1.77% APY MMA would yield ~3.28%.
Since I’m not interested in a 5K contract and I already have an Education Club account, they urged me to open an Installment Club account. I’m still mulling it over. I also stopped by Woori to pick up their current rate sheets for comparison.
mh83 said:Currently, all NewBank installment savings account rates remain unchanged, but the number of accounts allowed per customer has become more stringent. They said they’ve had to implement a limit of one account per account type per customer. That is, a person can only have one Vacation Club account, one Education Club account, and one Installment Club account.
The Vacation Club account still has a maximum contract amount of 5K. However, both the Education Club and Installment Club accounts have unlimited contract amounts.
If the largest Education Club denomination is $100,000 and the largest Installment Club denomination is $25,000, as per the rate sheet, and you can only open one of each then how can you get an unlimited contract? Are the contract amounts negotiable or can you open more than one of these accounts?
mh83 said:My 6.50% Club accounts matured last week. I took a screenshot of the accounts before I closed them as evidence of the nutty things we do for a decent rate. Twenty-two accounts at one bank is my personal record.
I didn’t encounter any problems closing the accounts. Unlike at account opening, only two documents per account needed to be prepared – the account closure form and the withdrawal slip.
Currently, all NewBank installment savings account rates remain unchanged, but the number of accounts allowed per customer has become more stringent. They said they’ve had to implement a limit of one account per account type per customer. That is, a person can only have one Vacation Club account, one Education Club account, and one Installment Club account.
The Vacation Club account still has a maximum contract amount of 5K. However, both the Education Club and Installment Club accounts have unlimited contract amounts.
They’ve also raised the rates on the MMA which if used as the funding source for the ISA makes the combined effective yield very competitive. As an example, for the 12-Month term, combining the 4.60% APY ISA and the 1.77% APY MMA would yield ~3.28%.
Since I’m not interested in a 5K contract and I already have an Education Club account, they urged me to open an Installment Club account. I’m still mulling it over. I also stopped by Woori to pick up their current rate sheets for comparison.
Great update mh83! It seems like NewBank rates continue to be a step ahead of the other installment accounts. Given their competitive rates and the flexibility to miss transfers without penalty, I may consider opening a installment account club account as well since it seems unlikely that they'll let me open another Education Club account. It is a real pity that the vacation club limits are so low.
for those that never heard of these install accounts, they are fdic insured? i read that we need to go to a branch to open, but can we cancel over the phone?
Also, is it possible to get a check mailed to you at maturity or renew/open a new account without another branch visit? I live in CA but I'll be in NYC for a few days next month and am considering opening one of these accounts while there. If anyone knows the answers to these questions, it would be quite helpful so that I can choose term length, etc. TIA
edit: to answer user3657's question - yes, the accounts are FDIC insured.
Message edited by: mttatkns on 2009-10-15 01:36:03 CDT
user3657 said:for those that never heard of these install accounts, they are fdic insured? i read that we need to go to a branch to open, but can we cancel over the phone?
Yes they are fdic insured. Given the laborious process of opening the account (basically filling out 2 forms by hand and signature for each account), I bet you have to go in or at least mail the correct closing forms.
mttatkns said:Also, is it possible to get a check mailed to you at maturity or renew/open a new account without another branch visit? I live in CA but I'll be in NYC for a few days next month and am considering opening one of these accounts while there. If anyone knows the answers to these questions, it would be quite helpful so that I can choose term length, etc. TIA
edit: to answer user3657's question - yes, the accounts are FDIC insured. I was told you have to open and close the accounts in person. You could always call and ask if the policy has changed.
Message edited by: glxpass on 2009-10-15 09:44:04 CDT
mrteeth said:If the largest Education Club denomination is $100,000 and the largest Installment Club denomination is $25,000, as per the rate sheet, and you can only open one of each then how can you get an unlimited contract? Are the contract amounts negotiable or can you open more than one of these accounts? Only one account of each type is allowed. For Education Club and Installment Club, contract amounts larger than those listed in the tables are permissible and the monthly payments will be a multiple of what’s shown in the tables. For instance, I have a 15-Year 500K Education Club contract and my payments are 1596.05 per month (5 x 319.21).
Regarding account openings and closings, they still must be done in person for both new and existing customers.
mh83 said:mrteeth said:If the largest Education Club denomination is $100,000 and the largest Installment Club denomination is $25,000, as per the rate sheet, and you can only open one of each then how can you get an unlimited contract? Are the contract amounts negotiable or can you open more than one of these accounts? Only one account of each type is allowed. For Education Club and Installment Club, contract amounts larger than those listed in the tables are permissible and the monthly payments will be a multiple of what’s shown in the tables. For instance, I have a 15-Year 500K Education Club contract and my payments are 1596.05 per month (5 x 319.21).
Regarding account openings and closings, they still must be done in person for both new and existing customers.
When I inquired at the branch yesterday I was told that the maximum contract amount for the Education Club Savings is $100k, no multiples allowed even for new customers.
Also, no statements will be provided for the club accounts, not even an annual statement. Is this within federal guidelines?
mh83 said:No doubt fueled at least in part by all the recent deposits streaming in to the Installment Club account, NewBank declared rate cuts yesterday.
This declaration of rate cuts is running rapid! Several of my MM accounts and personal checking accounts dropped in the last few days. It's enough to give me a headache..
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