Apple Bank - New kid on the internet banking block

Apple Bank for Savings, a New York state chartered savings bank and Member FDIC which traces its roots back to 1863 Manhattan, has recently entered the online banking arena with the Grand Yield Direct account. Grand Yield Direct, as of January 4, 2007, has an APY of 5.27%, which exceeds the rates of most of the more established online savings banks. For example, as of January 4, 2007, the Apple Bank account compares favorably with HSBC Bank USA’s best rate of 5.05%.

It’s easy to open a bank account online, too, the whole process can be completed electronically at Apple Bank, unlike with HSBC. No handwritten signature is required to open your account. It isn’t an internet only bank, however, with nearly 50 full-service neighborhood branch locations throughout greater New York. With over $5.5 billion in assets, Apple stands today as the 4th largest savings bank in the State of New York.

While Apple Bank has been around for a long time, the online savings aspect seems very new. The website is rather clunky still, and doesn’t hold a candle to those of ING Direct, VirtualBank, or HSBC. As the account gains favor and the user base increases, I expect to see Apple Bank refine the website. One advantage of the account over some of its competitors is that you can link it to other online money market accounts, so you don’t need to use a checking account as a middle man when chasing the rate increases.

Right now, I’m intrigued by Apple Bank, and have opened an account with them, but have yet to transfer a substantial amount from any of my lower-earning accounts. A little more polish to the website, and I’ll be a convert.