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Dime Community Bank Reviews: Checking, Savings, CD, Money Market and IRA Accounts

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Dime Community Bank’s checking account options

Perfectly Free Checking

Free checks and no fees almost make up for the lack of interest with this basic checking account.
  • Minimum opening deposit: $25
  • Monthly account maintenance fee: None
  • ATM fee: None
  • ATM fee refund: None
  • Overdraft fee: $30 per item

Perfectly Free Checking is Dime’s bare-bones checking account. After your opening deposit, there are no maintenance fees or minimum balance requirements. You’ll also get your first 50 checks for free.

But this account bears no interest. While you’ll be pulling in zero interest, checking accounts aren’t typically the best place to grow your nest egg, anyway, as this is where you keep the money you’ll be spending and paying bills with on a day-to-day basis.

To open a Perfectly Free Checking account, you will have to visit a branch or call 800-321-3463. It’s more convenient to visit in person since you will have to submit a copy of your driver’s license, state-issued ID or passport to open your account. If you’re doing so in person, all you have to do is bring your physical ID with you, and your representative will take care of the rest.

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Fabulous 50 Interest Checking

A fee-free checking account for seniors offering a low interest rate.
APYMinimum Balance to Earn APY
0.05%$0.01
  • Minimum opening deposit: $25
  • Monthly account maintenance fee: None
  • ATM fee: None
  • ATM fee refund: None
  • Overdraft fee: $30 per item

Fabulous 50 Interest Checking is a checking account available to seniors. It is nearly identical to Perfectly Free Checking, down to the 50 free checks. This account does bear interest, though. The interest rate is incredibly low, but it doesn’t come with any required minimum balance to earn your APY.

Open this account by visiting your local branch or calling 800-321-3463. Remember that you will have to submit a copy of your driver’s license, state-issued ID or passport to open your account.

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Direct Interest Checking

Set up direct deposit and earn a low APY on this checking account.
APYMinimum Balance to Earn APY
0.05%$0.01
  • Minimum opening deposit: $25
  • Monthly account maintenance fee: None
  • ATM fee: None
  • ATM fee refund: None
  • Overdraft fee: $30 per item

If you have your paycheck go into your checking account via direct deposit, you could qualify for Direct Interest Checking, which is the same as Fabulous 50 Interest Checking, except that you don’t have to be 50 or older. You will get 50 free checks and earn the same low interest rate with no monthly maintenance fees or minimum balance requirements.

To open any checking account with Dime Community Bank, call 800-321-3463 or visit a location near you. Be prepared with your driver’s license, state-issued ID or passport whichever way you decide to apply.

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Prime Dime Interest Checking

Burdensome minimum balance requirements outweigh the scaling APY on this checking account.
APYMinimum Balance to Earn APY
0.05%$0.01
0.08%$1,500
0.10%$10,000
  • Minimum opening deposit: $25
  • Monthly account maintenance fee: $10 a month if you don’t maintain an average daily balance of $1,500
  • ATM fee: None
  • ATM fee refund: Up to $10 a month on fees charged by other financial institutions
  • Overdraft fee: $30 per item

Prime Dime Interest Checking does offer a slightly higher interest rate, but, to qualify for the higher rates, you’ll have to build up far larger reserves in your checking account. You can get much higher interest rates elsewhere with much lower minimum balance requirements.

One other bonus of this account is that if you use an outside ATM and are charged a fee by another financial institution or ATM owner, Dime Community Bank will refund those fees up to $10 a month. But that potential win is partially canceled out by the fact that you’ll be charged a $10 monthly maintenance fee if you don’t keep your daily balance high enough.

To open this account with Dime Community Bank, visit one of its branches or call 800-321-3463. You will need a driver’s license, state-issued ID or passport to open your account.

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How Dime Community Bank’s checking accounts compare

Dime Community Bank’s interest rates are dramatically lower than the checking account rates offered by the competition. You may be thinking that these other financial institutions offering better rates must be charging higher fees but, most of the time, that isn’t true. Many financial institutions now offer low-fee, high-interest checking, and many of these accounts can be opened online from the convenience of your living room.

Dime Community Bank’s savings account options

Statement Savings

A savings account offering all the same benefits as a checking account but with more fees.
APYMinimum Balance to Earn APY
0.05%$250
  • Minimum opening deposit: $500
  • Minimum balance to earn APY: $250
  • Monthly account maintenance fee: $4 if you do not maintain an average daily balance of at least $500
  • ATM fee: None
  • ATM fee refund: None
  • Overdraft fee: $30 per item

The requirements of Dime Community Bank’s Statement Savings account aren’t worth the “reward.” Offering an interest rate akin to its checking accounts, Dime Community Bank requires its customers to maintain $500 balances. Customers could achieve the same goals by using Dime Community Bank’s Direct Interest Checking account. The checking account has no minimum balance requirements or incurring monthly maintenance fees — as long as you are setting up direct deposit.

A further restriction on savings accounts is that all of them — regardless of the financial institution offering them — are governed by the federal government’s Regulation D. This regulation stipulates that you are allowed up to six certain withdrawals per month from a savings account.

With Dime Community Bank, however, withdrawals made at a branch or via mail do not count toward this limit. If you violate this rule regularly enough, the bank will be forced to shut your account down.

To open this savings account, you can start the process by visiting your local branch, emailing Dime Community Bank or calling 800-321-3463. Be prepared to submit a scanned copy of your ID, whether it be a driver’s license, state-issued ID or passport.

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Club Account

Stow away savings until a predetermined date and earn a low APY in the meantime.
APYMinimum Balance to Earn APY
0.05%$0.01
  • Minimum opening deposit: $5
  • Minimum balance to earn APY: None
  • Monthly account maintenance fee: None
  • ATM fee: None
  • ATM fee refund: None
  • Overdraft fee: $30 per item

If you’re trying to save money for the holiday season or any other savings goal, you may consider a Club Account. This savings account allows you to put money in a separate account, and then that money is released to you at a specified date.

For example, if you were saving for holiday shopping, your Club Account funds may be distributed to your checking account sometime in November.

The idea is to set the funds aside separately from your other money so that it doesn’t get lost to day-to-day spending. This account comes with no minimum balance requirements and no account maintenance fees.

Club Accounts can be opened by visiting your local branch, emailing Dime Community Bank or calling 800-321-3463. Remember to come prepared with your driver’s license, state-issued ID or passport.

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Student Savings

Although this savings account carries a low interest rate, it is fee-free.
APYMinimum Balance to Earn APY
0.05% Variable $0.01
  • Minimum opening deposit: None
  • Minimum balance to earn APY: None
  • Monthly account maintenance fee: None
  • ATM fee: None
  • ATM fee refund: None
  • Overdraft fee: $30 per item

This savings account is for teens and young adults who have not yet graduated from college. It offers a meager interest rate, but it also comes with no minimum opening deposit requirement, no minimum balances and no monthly maintenance fees. It’s a low-cost account that will be converted to a regular savings account when the account holder turns 23.

To get the ball rolling on your Student Savings account, visit your local branch, call 800-321-3463 or email Dime Community Bank. Students will need to submit a copy of their state-issued ID, driver’s license or passport before opening an account.

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How Dime Community Bank’s savings accounts compare

Dime Community Bank’s savings accounts are hard to take seriously. Interest rates are abysmal. Statement Savings has potential monthly maintenance fees, and the account itself is difficult to set up. Shop for other savings accounts, where you’ll find better rates and lower fees. Your money will thank you.

Dime Community Bank’s CD rates

Certificates of deposit

Dime Community Bank’s CDs have low rates, but there may be a few pleasant surprises with this product.
TermAPY
3 Months0.10%
4 Months0.15%
5 Months0.15%
6 Months0.20%
7 Months2.00%
8 Months0.30%
9 Months0.30%
10 Months0.40%
11 Months0.40%
12 Months0.40%
13 Months1.35%
14 Months0.45%
15 Months0.50%
16 Months2.00%
16 Months — Promotional2.80%
18 Months0.50%
2 Years1.60%
2 Years — Promotional2.25%
30 Months2.00%
3 Years2.00%
4 Years2.00%
5 Years2.00%
7 Years1.60%
  • Minimum opening deposit: $500
  • Minimum balance amount to earn APY: $500
  • Early withdrawal penalty: One month worth of interest on terms of three to six months; three months’ worth of interest on terms of six months to one year; nine months’ worth of interest on terms of one to two years; 18 months’ worth of interest on terms of two to three years; 24 months’ worth of interest on terms of three years or more

As is the trend with most of Dime Community Bank’s products, its CDs are lackluster when it comes to APY. Two gleaming exceptions are the 11-month and 16-month promotional CDs. These offer competitive interest rates that keep pace with other options on the market.

Minimum opening deposit and balance requirements are also on the low end, which means more people will be able to take advantage of these terms.

You must open your CD in person, and you must present your driver’s license, state-issued ID or passport when you do.

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How Dime Community Bank’s CD rates compare

Most of Dime Community Bank’s rate and term offerings are not competitive. But the 11-month and promotional 16-month term CDs hold their own. Be sure to compare these individual terms and rates with the best CD offers on the market to ensure you get the highest-yielding account appropriate for your situation and time horizon.

Dime Community Bank’s money market account options

DimeDirect Money Market Account

This money market account offers a fantastic rate. Be careful of the potentially steep fees.
APYMinimum Balance to Earn APY
1.35%$0.01
0.20%$500,000
  • Minimum opening deposit: $1,000
  • Minimum balance to earn APY: None
  • Monthly account maintenance fee: You must have $5,000 in your money market or $1,500 in your checking account to avoid a $15-a-month fee.
  • ATM fee: None
  • ATM fee refund: None
  • Overdraft fee: $30 per item

The DimeDirect Money Market Account offers a great rate on balances less than $500,000. There is a fairly steep monthly maintenance fee, but it can be alleviated by building up a higher balance in your money market account, or by satisfying rather ambitious minimum balance requirements in a Dime Community Bank checking account.

Money market accounts are also savings accounts, so be sure to remember Regulation D when you make your financial plans. You are able to make up to six certain withdrawals from this account per month, though Dime Community Bank may cut you some slack the first couple of times it happens.

This is one account available outside of the Big Apple. You can open your DimeDirect Money Market Account online regardless of where in the U.S. you live. Just know that you will have to upload an image of your state-issued ID, driver’s license or passport as a part of the application process.

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Rewards Money Market Account

A low-yield money market account you cannot open online.
APYMinimum Balance to Earn APY
0.05%$0.01
0.10%$1,000
0.15%$25,000
0.15%$50,000
0.20%$75,000
  • Minimum opening deposit: $2,500
  • Minimum balance to earn APY: Varies depending on desired APY
  • Monthly account maintenance fee: If your balance stays at or above $2,500, you will not have to pay the $10-a-month maintenance fee.
  • ATM fee: None
  • ATM fee refund: None
  • Overdraft fee: $30 per item

The Rewards Money Market Account is not available online, and the differences don’t stop there. While DimeDirect Money Market offers highly competitive rates, the Rewards Money Market Account is a letdown. You can find far better rate offers elsewhere — sometimes even with lower minimum balance requirements.

We’d encourage you to open a DimeDirect Money Market Account instead of this one, but if you want to give the Rewards Money Market Account a go anyways, you can do so by opening this account at your local branch with a passport, driver’s license or state-issued ID.

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How Dime Community Bank’s money market accounts compare

Dime’s two money market accounts couldn’t be more different. The online DimeDirect Money Market Account is right up there with the accounts offering the best rates on the market, while the Rewards Money Market Account, which is more difficult to open, doesn’t hold a candle to these rates. Do some comparison shopping for money market accounts as you might find your match at another financial institution, but keep this page open as you do. DimeDirect is going to give them a run for their money.

Dime Community Bank’s IRA account options

IRA CD rates

The promotional rates on these IRA CDs may be gone tomorrow.
TermAPY
18 Months1.75%
  • Minimum opening deposit: $500
  • ? Minimum balance amount to earn APY: $500
  • Early withdrawal penalty: Nine months’ worth of interest

Here today and potentially gone tomorrow, Dime Community Bank’s IRA certificate is promotional in nature. That being said, it does offer an APY that merits a second look. This rate is far from the highest on the market, but it’s no so low that it’s insulting either. Minimum opening deposit and balance requirements are reasonable, but this account isn’t so great that you should forgo checking out the competition.

To get the process started, call 800-321-3463.

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How Dime Community Bank’s IRA CD rates compare

The rates on this promotion are respectable, but they’re far from the best around. Other financial institutions are offering better rates, though they will sometimes come with much higher minimum deposit requirements. Do your research to make sure you are getting the best IRA CD for your individual situation. As this will be part of your IRA, it may not be a bad idea to sit down with a certified financial planner or chartered financial analyst while you’re at it to see how this type of account would function within your entire portfolio.

Overall review of Dime Community Bank’s banking products

Dime Community Bank offers many disappointing banking products with a few shining exceptions. While you’ll want to avoid its checking accounts, you’ll want to at least consider hopping online to open a DimeDirect Money Market Account. Its savings accounts aren’t the best products around, but the 11-month and promotional 16-month CDs are incredibly competitive.

If you’re piecemealing together the best financial landscape possible, a few of Dime Community Bank’s products will help you do just that. But if you’re looking for the convenience of a one-stop shop, your money is likely to grow quicker elsewhere.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Brynne Conroy
Brynne Conroy |

Brynne Conroy is a writer at MagnifyMoney. You can email Brynne here

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Reviews

Webster Bank Review: Checking, Savings, CD and Money Market Accounts

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Webster Bank’s checking account options

WebsterOne Relationship Checking

Steep maintenance fees and virtually no interest make this checking account hard to sell.
APYMinimum Balance to Earn APY
0.01%$0.01
  • Minimum opening deposit: $50
  • Monthly account maintenance fee: $14.95 if you set up direct deposit and $16.95 otherwise. Read below to find out how you can avoid this fee.
  • ATM fee: None
  • ATM fee refund: None
  • Overdraft fee: $37 on overdrafts more than $5. If your account remains overdrawn for more than five days, you will be charged an extra $5 fee each day it remains overdrawn.

Webster Bank’s maintenance fees are a bit steep, but there are ways to reduce or avoid paying them. For WebsterOne Relationship Checking, you get a couple of dollars knocked off the maintenance fee if you set up direct deposit. The fee can be eliminated, though, if you have a combined total of $4,000 across your Webster Bank checking, savings and money market accounts. Another way to get the fee to $0 is to have $20,000 in business with Webster Bank across your checking account, savings account, money market account, certificates of deposit (CDs), home equity loan and installment loans.

While WebsterOne Relationship Checking comes with only a sliver of interest, it also comes with no fees when you use an ATM outside of Webster Bank’s network. The same cannot be said of most of the other deposit accounts offered by this bank.

How to get WebsterOne Relationship Checking account

You can apply online or in person using your employment information, Social Security number and driver’s license number.

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Webster Value Checking

This no-interest checking account has plenty of fees, but most of them are easy to get out of paying.
  • Minimum opening deposit: $50
  • Monthly account maintenance fee: $11.95. Read more below to learn how to avoid this fee. Separately, there is a $2 monthly fee if you do not receive monthly statements electronically.
  • ATM fee: $2.50 for non-Webster Bank ATM transactions
  • ATM fee refund: None
  • Overdraft fee: $37 on overdrafts more than $5. If your account remains overdrawn for more than five days, you will be charged an extra $5 fee each day it remains overdrawn.

Webster Value Checking has a slightly lower account maintenance fee than the WebsterOne Relationship Checking option, and getting around the fee is much easier, too. For this account, you have three options to avoid the fee: You can keep a $1,000 average monthly balance in your Webster Value Checking account, make at least 10 non-ATM transactions with your debit card or be 65 and older and have direct deposit set up.

This account bears no interest, comes with ATM fees and will incur a $2 fee per month if you don’t opt into electronic statements. The $2 fee is waived for those 65 and older or 18 and younger.

How to get Webster Value Checking account

Apply online or in person using your driver’s license, Social Security number and employment information.

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Webster Opportunity Checking

An account for those who may have been pushed out of the traditional banking system.
  • Minimum opening deposit: $50
  • Monthly account maintenance fee: $11.95 if you set up direct deposit and $16.95 otherwise. Separately, there is a $2 monthly fee if you do not receive monthly statements electronically, unless you are 65 and older or 18 and younger.
  • ATM fee: $2.50 for non-Webster Bank ATM transactions
  • ATM fee refund: None
  • Overdraft fee: $37 on overdrafts more than $5. If your account remains overdrawn for more than five days, you will be charged an extra $5 fee each day it remains overdrawn.

Webster Opportunity Checking may look nearly identical to Webster Value Checking, but it’s not. Webster Opportunity Checking is built for those who may have been forced out of the traditional banking system by past financial mistakes or misfortunes. When this happens, many financial institutions will turn you away, making it difficult to manage your money and avoid predatory financial services.

You can earn a clean slate, though, by opening a Webster Opportunity Checking account. There is no way to avoid the monthly maintenance fee with this account.

How to get Webster Opportunity Checking account

You can only open this account by visiting a branch. Be sure to bring a valid government-issued ID and a copy of your Social Security card.

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Webster Premier Checking

Steeper fees and balance requirements get you a marginal increase in APY with this account.
APYMinimum Balance to Earn APY
0.01%$0.01
0.01%
$50,000
  • Minimum opening deposit: $500
  • Monthly account maintenance fee: $21.95 (this can be waived)
  • ATM fee: None
  • ATM fee refund: All charges from outside ATM owners will be returned to you the same day
  • Overdraft fee: $37 on overdrafts more than $5. If your account remains overdrawn for more than five days, you will be charged an extra $5 fee each day it remains overdrawn.

Webster Premier Checking is an expensive way to access marginally better interest rates. First, it has the largest of all Webster Bank’s maintenance fees, and it can only be waived if you keep $10,000 across your checking, savings and money market accounts, or if you have a combined $50,000 across your Webster Bank checking, savings and money market account, CDs, home equity loans and installment loans.

There is no fee for using another financial institution’s ATM, though. When an ATM owner imposes a fee on its end, Webster Bank will return it to you the same day. Other perks include free wire transfers, free checks and a reduction in interest rates on loan products. You must have this account to take full advantage of the Webster Premier Savings account, which we will talk about shortly.

How to get Webster Premier Checking account

Gather your driver’s license, Social Security number and employment information before applying in person or online.

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Webster Student Checking

This lower-fee account for college students bears no interest.
  • Minimum opening deposit: $50
  • Monthly account maintenance fee: None for five years
  • ATM fee: First four non-Webster ATM transactions per month are free; each after that incurs a $2.50 fee
  • ATM fee refund: One fee charged by a non-Webster Bank ATM owner will be returned to you per month
  • Overdraft fee: $37 on overdrafts more than $5. If your account remains overdrawn for more than five days, you will be charged an extra $5 fee each day it remains overdrawn.

Aimed at college students, the Webster Student Checking account doesn’t bear any interest, but it does come with several other perks. For example, with this type of account you won’t have any maintenance fees for five years. You’ll also get four free transactions per month at non-Webster Bank ATMs, though each transaction after that will cost you a couple of dollars.

You’ll get the first fee that another financial institution charges you to use its ATM returned to you with this account. But that refund will only happen once per month. After that, you’re stuck paying outside ATM owners whatever fee they’re charging with no reimbursement. On top of that potential refund, you can get one overdraft fee refunded to you each academic year.

How to get Webster Student Checking account

Open your account online or in person with your student ID card.

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How Webster Bank’s checking accounts compare

The fee structure on Webster Bank’s checking accounts is a lot to keep up with. While it’s wonderful that there are ways to avoid many of the fees, each one comes with an added asterisk that you’ll have to remember throughout every month. Individually, the fee waivers are simple, but when considered holistically it’s likely to be difficult to keep up with them.

On top of that, Webster Bank’s checking account rates are not anywhere near competitive. We highly recommend shopping around for other checking accounts before deciding to open your account here. Because there are so few options for shopping around when you’ve been booted from the traditional banking system, Webster Opportunity Checking may still be a desirable account if you’ve gone through that experience. But otherwise, you can find better rates elsewhere.

Webster Bank’s savings account options

Webster Value Savings

This account is essentially the same as Passbook Savings, except you can access it online.
APYMinimum Balance to Earn APY
0.02%$0.01
  • Minimum opening deposit: $5
  • Minimum balance to earn APY: 1 cent
  • Monthly account maintenance fee: $5 unless you have a consumer checking account with Webster Bank or maintain an account balance of $300
  • ATM fee: $2.50 for non-Webster Bank ATM transactions
  • ATM fee refund: None
  • Overdraft fee: $37 on overdrafts more than $5. If your account remains overdrawn for more than five days, you will be charged an extra $5 fee each day it remains overdrawn.

Webster Value Savings is very similar to Passbook Savings, except it can be accessed online. The other difference is that besides age and balance potentially getting you out of the monthly maintenance fee, you can also dodge this fee by having a checking account with Webster Bank. Remember that you cannot make more than six withdrawals per month as this is a savings account.

How to get Webster Value Savings account

You can apply online or in person with your employment information, Social Security number and driver’s license.

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WebsterOne Savings

This account boasts better — though still low — interest rates. But you’ll have to have a corresponding checking account to earn them.
APYMinimum Balance to Earn APY
0.05%$0.01
0.10%$25,000
0.15%$100,000
  • Minimum opening deposit: $5
  • Minimum balance to earn APY: Varies depending on desired APY
  • Monthly account maintenance fee: $5 unless you maintain a balance of at least $300
  • ATM fee: $2.50 for non-Webster Bank ATM transactions
  • ATM fee refund: None
  • Overdraft fee: $37 on overdrafts more than $5. If your account remains overdrawn for more than five days, you will be charged an extra $5 fee each day it remains overdrawn.

With WebsterOne Savings, you start to see interest rates creeping up, but they are still low compared to the rest of the market. Besides that, the minimum balance requirements for the higher interest rates are quite steep. To earn these interest rates, you must have a WebsterOne Relationship Checking account. If you don’t, your WebsterOne Savings account will only pay the going interest rate of a Webster Value Savings account.

To get out of paying the monthly maintenance fee, you must maintain a balance of $300. The only other way out if it is age: Those younger than 21 or 65 and older do not have to pay this fee. But they are still subject to the rule of six withdrawals per month.

How to get WebsterOne Savings account

Gather your driver’s license, Social Security number and employment information so that you can apply in person or online.

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Premier Savings

Get slightly higher interest rates in exchange for having a Webster Premier Checking account.
APYMinimum Balance to Earn APY
0.05%$0.01
0.05%$10,000
0.15%$25,000
0.20%$50,000
0.25%$100,000
  • Minimum opening deposit: $5
  • Minimum balance to earn APY: Varies depending on desired APY
  • Monthly account maintenance fee: None
  • ATM fee: $2.50 for non-Webster Bank ATM transactions
  • ATM fee refund: None
  • Overdraft fee: $37 on overdrafts more than $5. If your account remains overdrawn for more than five days, you will be charged an extra $5 fee each day it remains overdrawn.

While Webster Bank’s Premier Savings account offers higher rates, they are still low. To earn these interest rates, you will have to have a Webster Premier Checking account in your name, too. Otherwise, you’ll only be rewarded with the marginal Webster Value Savings rate.

This account comes with no maintenance fee and a limit of six withdrawals per month.

How to get Webster Bank’s Premier Savings account

Use your driver’s license, Social Security number and employment information to open this account online or in person.

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Premier Savings Extra

This savings account offers a small bump in APY in exchange for a higher balance requirement.
APYMinimum Balance to Earn APY
0.15%$0.01
0.30%$25,000
0.40%$50,000
0.50%$100,000
0.55%$250,000
  • Minimum opening deposit: $5
  • Minimum balance to earn APY: Varies depending on desired APY
  • Monthly account maintenance fee: $10 (this can be waived)
  • ATM fee: $2.50 for non-Webster Bank ATM transactions
  • ATM fee refund: None
  • Overdraft fee: $37 on overdrafts more than $5. If your account remains overdrawn for more than five days, you will be charged an extra $5 fee each day it remains overdrawn.

If you want to earn about half a percentage point more, you can do so with Premier Savings Extra. This account has slightly higher interest rates, and the monthly maintenance fee can be waived if you maintain a balance of $10,000 or more. You will also need a Webster Premier Checking account. Otherwise, you’ll only earn the rate offered for Webster Value Savings.

How to get Webster Bank’s Premier Savings Extra account

Come prepared with your driver’s license, Social Security number and employment information when you apply for this account online or in person.

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Passbook Savings

This account can only be accessed by visiting a brick-and-mortar location.
  • Minimum opening deposit: $5
  • Minimum balance to earn APY: 1 cent
  • Monthly account maintenance fee: $5 unless you maintain a balance of $300
  • Overdraft fee: $37 on overdrafts more than $5. If your account remains overdrawn for more than five days, you will be charged an extra $5 fee each day it remains overdrawn.

Passbook Savings is an in-person savings account. That means you will not have access to online banking, and every transaction you want to make will have to be completed at a brick-and-mortar location. Also, you’ll have to call the bank to check for the current rates. This may be no big deal if online banking makes you uncomfortable, or if you want to make it harder to get money out of your account for self-disciplinary reasons. But for most other people, it’s an inconvenience.

This account does come with a monthly maintenance fee, but it can be waived if you maintain a balance of $300 or more. It can also be waived if you are younger than 21 or 65 and older – even if you have less than $300 in your account.

Savings accounts fall under certain federal rules, including Regulation D. This regulation states that you are allowed up to six certain withdrawals per month. If you do and it is your first offense, Webster Bank will send you a warning letter. If your behavior persists, the bank will be forced to shut your account down.

How to get Webster Bank’s Passbook Savings account

To open this account, bring employment information, your Social Security number and your driver’s license to your local branch. This account cannot be opened online.

Holiday Club Savings

This savings account can help you save for the holidays with a low APY.
APYMinimum Balance to Earn APY
0.02%$0.01
  • Minimum opening deposit: $5
  • Minimum balance to earn APY: 1 cent
  • Monthly account maintenance fee: None
  • Overdraft fee: $37 on overdrafts more than $5. If your account remains overdrawn for more than five days, you will be charged an extra $5 fee each day it remains overdrawn.

Holiday Club Savings accounts help you save for holiday spending by automatically transferring some money from one of your other accounts every month. This set-it-and-forget-it method ensures that you’ll be socking money away even if you forget.

Every year during the third week of October, Webster Bank will issue you a physical check for the amount you have saved in your Holiday Club Savings account. From there, all you have to do is deposit it and get shopping.

How to get Webster Bank’s Holiday Club Savings account

You can get the process started in person or online with your employment information, Social Security number and driver’s license.

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on Webster Bank’s secure website

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How Webster Bank’s savings accounts compare

Webster Bank’s savings accounts don’t hold a candle to some of the best savings rates on the market. These higher rates can be found at traditional banks and credit unions, but the majority of them are offered by online-only financial institutions that do not have to pay the overhead costs of maintaining brick-and-mortar location.

If the idea of a Holiday Club Savings account sounds appealing to you, know that Webster Bank is not the only one to offer it. Typically, you’ll find these accounts at credit unions. If you shop around, you’re likely to find one with a far higher interest rate.

Webster Bank’s CD rates

Traditional CDs

This CD product offers middle-of-the-road interest rates with a unique fee formula.
TermAPY
11 months2.25%
16 months2.40%
24 months1.75%
36 months1.75%
60 months1.75%
  • Minimum opening deposit: $1,000
  • Minimum balance amount to earn APY: 1 cent
  • Early withdrawal penalty: Early withdrawals on 11-month CDs incur a $25 fee plus 1% of the amount you withdraw; all other CDs incur a $25 fee plus 3% of the amount you withdraw.

Webster Bank’s traditional CDs don’t have the worst rates around, but they’re not the best, either. Be sure to shop around for the top CD rates to ensure your money has a chance to grow quickly.

A relatively unique feature of these traditional CDs is that you can withdraw money even if it puts your balance below the minimum opening deposit amount. Your fees are structured a bit differently, too.

Most CDs have early withdrawal penalties based on the amount of interest your certificate has accrued. But Webster Bank charges a flat-rate fee plus a percentage of the amount you withdraw. It’s still never a great idea to withdraw money from a CD as withdrawal penalties — however they’re formulated — can eat away at your earnings.

How to get Webster Bank’s traditional CDs

You can open your traditional CD with your employment information, Social Security number and driver’s license online or in person.

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on Webster Bank’s secure website

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Bump Up CD

The lower interest rate on this CD has potential to grow.
TermAPY
36 Months1.75%
  • Minimum opening deposit: $1,000
  • Minimum balance amount to earn APY: 1 cent
  • Early withdrawal penalty: $25 plus 3% of the amount you withdraw

The Bump Up CD is offered in a 36-month term. You may notice that the rate on this 36-month CD is slightly lower than a traditional 36-month CD. But with the Bump Up CD, you have the option to “bump up” your interest rate once during your term. That means if rates go up, you’ll be able to take advantage and potentially score a higher rate than even the traditional CD for the remainder of your term. It’s not a guarantee, though — rates could go down or stay stagnant, in which case you’re not going to want to bump your rate at all.

To get this kind of CD, you must have either a Webster Premier Checking or WebsterOne Relationship Checking account.

How to get Webster Bank’s Bump Up CDs

You’ll need your employment information, driver’s license and Social Security number when you go to open this CD in person or online.

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on Webster Bank’s secure website

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How Webster Bank’s CD rates compare

Webster Bank’s CD rates aren’t horrible, but they aren’t the best CDs on our list, either. They also come with some unique features you aren’t likely to find at other financial institutions. These features can be bad, such as the mandatory nature of certain checking accounts, or good, such as the ability to withdraw money beyond the floor of the minimum opening deposit.

Shop around to make sure you’re finding those better rates, keeping these CDs’ unique features in mind.

Webster Bank’s money market account option

Premium Money Market Savings

You’ll find a low rate of return on Webster Bank’s only money market product.
APYMinimum Balance to Earn APY
0.02%$0.01
0.02%$10,000
0.05%$25,000
0.15%$100,000
  • Minimum opening deposit: $1,500
  • Minimum balance to earn APY: Varies depending on desired APY
  • Monthly account maintenance fee: $12 waivable fee
  • ATM fee: $2.50 for non-Webster Bank ATM transactions
  • ATM fee refund: None
  • Overdraft fee: $37 on overdrafts more than $5. If your account remains overdrawn for more than five days, you will be charged an extra $5 fee each day it remains overdrawn.

Webster Bank’s Premium Money Market Savings account doesn’t earn a high rate of return, regardless of which tier your balance places you in. There is also a maintenance fee, which not all money market accounts have when competitors offer them. But this fee can be waived if you maintain a balance of $2,500 or more.

Money market accounts fall into the savings account category, which means that they are also subject to federal Regulation D. You are allowed up to six certain withdrawals per month without risking getting your account closed shut down by the bank.

How to get Webster Bank’s Premium Money Market Savings account

Open your account in person or online with your Social Security number, driver’s license and employment information.

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on Webster Bank’s secure website

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How Webster Bank’s money market account compares

The rates offered by Webster Bank fall entire percentage points behind the competition. Money market accounts were originally meant to offer much higher rates than your typical savings account. You can still get that benefit today if you shop for money market accounts. Unfortunately, you won’t find competitive rates at Webster Bank.

Overall review of Webster Bank’s banking products

All the deposit accounts offered by Webster Bank fall behind the competition. Many of them also require high balances or tandem accounts to avoid monthly maintenance fees or score a slightly higher APY.

The only account that may be worth checking out is Webster Opportunity Checking. But that account is only useful to consumers who are having trouble finding a financial institution that will allow you to open an account. Everyone else should shop the competition to potentially nab higher interest rates and lower fees.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Brynne Conroy
Brynne Conroy |

Brynne Conroy is a writer at MagnifyMoney. You can email Brynne here

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Reviews

BankUnitedDirect Review: Money Market and CD Rates

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

BankUnitedDirect’s CD rates

Certificates of Deposit

Competitive certificates with reasonable minimum opening deposit requirements.
TermAPY
6 Months1.90%
9 Months2.05%
12 Months2.25%
18 Months2.25%
24 Months2.25%
36 Months2.25%
  • Minimum opening deposit: $1,000
  • Minimum balance amount to earn APY: $1,000
  • Early withdrawal penalty: 6 months’ worth of interest

BankUnitedDirect’s CD rates are highly competitive, especially so in certificates with shorter terms. While they aren’t the highest on the market, you could definitely do worse. On top of the minimum opening deposit requirement, the max you can hold in your CD is $250,000, also the point where your account has maxed out its FDIC protection.

If at any time you make a withdrawal from your BankUnitedDirect CD, it will automatically shut down. You will be charged the easy-to-understand early withdrawal penalty, and you can then choose to withdraw all of your money or put some of it back into a new CD.

How to get BankUnitedDirect’s CDs

You will have to open your CD online. Before you begin the application, make sure you have some basic information and documentation like your current address, Social Security number, phone number, email address, valid government-issued ID and account funding information.

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on BankUnitedDirect’s secure website

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How BankUnitedDirect’s CD rates compare

Minimum deposit rates at BankUnitedDirect fall within an industry standard range. The offered APY on certificates is not the highest around, but it’s far from the worst deal out there.

You’ll want to consider term length when comparing rates. For example, at the time of this writing, BankUnitedDirect’s 12 month certificate is only one tenth of a percentage point behind the market leader, but 3 year certificates lag behind by an entire 0.45%. While the rates are generally competitive, you’re going to want to check out the current best CD offers on the market before committing.

BankUnitedDirect’s money market account options

Money Market Account

One of the best money market accounts around. Just watch out for the monthly fee.
APYMinimum Balance to Earn APY
1.95%
$0.01
  • Minimum opening deposit: $2,500
  • Minimum balance to earn APY: $0.01
  • Monthly account maintenance fee: $15, if your balance falls below $2,500
  • ATM fee: First 5 out-of-network ATM transactions per statement cycle are free. After that, there will be a $2.50 fee for each transaction at out-of-network ATMs.
  • ATM fee refund: None
  • Overdraft fee: $35 base fee, plus $4 fee per day for each day your account is overdrawn.

BankUnitedDirect’s Money Market Account is extremely competitive. Many money market accounts require you to maintain a minimum monthly balance in the thousands and sometimes tens of thousands to earn the advertised APY, but BankUnitedDirect does not. In fact, any balance you keep in your Money Market Account will earn the advertised APY, which ranks among the highest rates currently offered by any financial institution.

That doesn’t mean there are no balance requirements, though. If your balance falls below $2,500 in any given month, you will be charge a $15 fee. Depending on how far below the $2,500 mark you are, that can eliminate the return you’re getting in interest.

Money market accounts are subject to federal Regulation D. That means you’re allowed up to six certain withdrawals or transfers per month without a penalty enforced by the bank. If you make more than six of these transactions, you will be charged an excessive withdrawal fee of $15 for each transaction by BankUnitedDirect.

Make sure you’re committed before opening this account. If you choose to close it within six months of opening, you will be charged an additional $15 fee.

How to get BankUnitedDirect’s Money Market Account

You must open this account online with your valid government-issued ID, Social Security number, address, phone number, email address and account funding information.

LEARN MORE Secured

on BankUnitedDirect’s secure website

Member FDIC

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How BankUnitedDirect’s money market accounts compare

BankUnitedDirect offers a phenomenal money market account. On top of a competitive interest rate, there are no minimum balance requirements to earn the APY. While there are minimum balance requirements in order to avoid the monthly maintenance charge, this requirement is low compared with similar accounts of this ilk. You should always shop around on our list of best money market accounts before making a final decision, but you can stress less as you go into the shopping experience knowing this is one of the best options on the market.

Overall review of BankUnitedDirect’s banking products

There’s really no losing with BankUnitedDirect’s current deposit account offerings. While you currently only have certificates of deposit and money market accounts as account options, both of these products offer fair rates with limited “gotcha” fees and requirements.

Its Money Market Account, in particular, is a star product. With some of the highest rates and lowest balance requirements around, it ranks as a favorite. Its CDs are competitive, too. They just don’t carry the absolute best rates at this point in time, requiring a more urgent need to shop around than if you are looking at only money market account offerings.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Brynne Conroy
Brynne Conroy |

Brynne Conroy is a writer at MagnifyMoney. You can email Brynne here