Heritage Bank Review of Checking, Savings, CD, Money Market and IRA Rates

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Updated on Sunday, November 1, 2020

Heritage Checking Account Options

Heritage Summit Checking

Summit Checking pays interest on all deposits, no matter how small.

APY

Minimum Balance to Earn APY

0.02%

$0 - $9,999.99

0.03%

$10,000 - $24,999.99

0.04%

$25,000 - $49,999.99

0.05%

$50,000+

  • Minimum opening deposit: $100
  • Monthly account maintenance fee: $8, waived with a $1,500 minimum balance
  • ATM fee: $0 for network ATMs; $2.50 for others
  • ATM fee refund: None
  • Overdraft fee: $34 per instance, up to six times per day; additional $5 daily overdraft fee starting on the fourth consecutive business day of overdraft, assessed for up to 15 consecutive days; $5 overdraft protection transfer fee, per business day

Heritage Summit Checking carries a higher monthly maintenance fee than other Heritage Bank checking accounts, but the fee can be waived with a minimum sustaining balance. Unlike other Heritage Bank checking accounts, Summit Checking pays interest on balances as small as $0.01. Interest rates are tiered across four levels, with deposits of $50,000 or more earning the highest rates.

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Heritage Premier Checking

Premier Checking has a waivable $8 service fee but does pay higher interest.

APY

Minimum Balance to Earn APY

0.03%

$0 - $9,999.99

0.05%

$10,000 - $24,999.99

0.08%

$25,000 - $49,999.99

0.10%

$50,000 - $99,999.99

0.15%

$100,000 - $249,999.99

0.20%

$250,000+

  • Minimum opening deposit: $100
  • Monthly account maintenance fee: $8; waived if you have $50,000 balance across all Heritage accounts
  • ATM fee: $0 for network ATMs; $2.50 for others
  • ATM fee refund: None
  • Overdraft fee: $34 per instance, up to six times per day; additional $5 daily overdraft fee starting on the fourth consecutive business day of overdraft, assessed for up to 15 consecutive days; $5 overdraft protection transfer fee, per business day

Premier Checking is the high-deposit version of the bank’s Summit Checking account. With Premier Checking, you’re entitled to all the benefits of the Summit Checking account with the added feature of higher interest rates. The account is limited to customers with at least $50,000 deposited at the bank, across all accounts. Premier Checking customers earn interest at six different tier levels, with the highest rates paid on accounts with at least $250,000 on combined deposit.

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Heritage Base Checking

Base checking is Heritage Bank’s no-frills, low-fee account.
  • Minimum opening deposit: $100
  • Monthly account maintenance fee: $7, waived when $100 minimum balance is met
  • ATM fee: $0 for network ATMs; $2.50 for others
  • ATM fee refund: none
  • Overdraft fee: $34 per instance, up to six times per day; additional $5 daily overdraft fee starting on the fourth consecutive business day in overdraft status, assessed for up to 15 consecutive days; $5 overdraft protection transfer fee, per business day

Although Base Checking is the lowest service offering from Heritage Bank, it still carries many benefits. Like all Heritage Bank checking accounts, you’ll have access to the following features:

  • A nationwide, surcharge-free ATM network
  • Free online banking and bill pay services
  • Mobile banking with remote deposit
  • 24-hour toll-free telephone banking
  • Visa debit card with purchase protection
  • Standard overdraft coverage
  • Online statements

The Base Checking account also offers “Dime-a-Time” rewards, which allow customers to earn ten cents, or a dime, for every credit transaction (signature, non-PIN based) using the provided Visa debit card. E-statements are free, and paper statements are available for $3, or $5 with check images. The account has a small opening balance requirement and offers free unlimited check writing.

Heritage Bank has very high overdraft charges. However, you can minimize those by signing up for standard overdraft coverage, which will cover your overdrafts with funds from a Heritage Bank checking, savings or money market account.

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Heritage Ascent Checking

Ascent Checking charges a higher fee but comes with the bank’s “BaZing” benefits.
  • Minimum opening deposit: $100
  • Monthly account maintenance fee: $6
  • ATM fee: $0 for network ATMs; $2.50 for others
  • ATM fee refund: None
  • Overdraft fee: $34 per instance, up to six times per day; additional $5 daily overdraft fee starting on the fourth consecutive business day of overdraft, assessed for up to 15 consecutive days; $5 overdraft protection transfer fee, per business day

Heritage Ascent Checking carries all the features of the bank’s Base Checking account. This includes the $100 minimum balance requirement, unlimited check writing and the same ATM fee structure. However, it also provides access to Heritage BaZing benefits, free of charge. BaZing benefits include:

  • Identity theft assistance
  • Roadside assistance
  • Cell phone protection
  • $2,500 personal identity protection
  • $10,000 travel accident death insurance
  • Local and national shopping and dining discounts
  • Nationwide, hotel, travel, entertainment and recreation discounts
  • Savings on prescriptions, hearing aids and vision services

How to open Heritage Bank’s checking accounts

You can open any type of Heritage Bank account online in about 10 minutes. The intuitive progress indicator guides on the left side of the page as you go through the following steps:

  • Account selection
  • Account options
  • Account disclosures and agreements
  • Applicant information
  • Account usage
  • Final look
  • Account approval

To qualify for an account, you’ll need:

  • A Social Security number
  • A valid form of government-issued ID, such as a driver’s license, state ID or passport
  • A funding source for the account, such as a checking or savings account, or a credit or debit card
  • Your prior address, if you have moved in the past two years

If you’d prefer to open an account in person, you can visit one of the bank’s branches in Washington or Oregon. You can call the bank’s customer service line for more information. Customer service hours are from 7:30 am to 6:00 pm, Monday through Friday, and 9:00 am to 1:00 pm on Saturday.

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How Heritage Bank’s checking accounts compare

As a regional bank, Heritage Bank focuses on providing community services in the Northwest, where all its branches are found.

Only two of Heritage Bank’s checking accounts pay interest, and rates are low. Although the top rates on the bank’s high-balance checking account are above the national average, Heritage Bank’s checking accounts don’t approach the top online banks’ checking account in terms of interest rates.

All Heritage Bank accounts provide an impressive level of basic services, including extensive free ATM access within the bank’s network. However, there are no fee rebates for non-network ATMS.

A huge drawback of the Heritage Bank checking accounts is the high overdraft fee. This fee can be reduced through overdraft protection, but if customers act on that, the exorbitant overdraft fee can be assessed as many as six times a day.

On the plus side, the bank’s BaZing Benefits, offered on all checking accounts except for Base Checking, provide services that appeal to many customers, all free of charge. Benefits like cell phone protection, roadside assistance and personal identity protection are all valuable additions.

Heritage Bank Savings Account Options

Heritage Alpine Savings Account

The bank’s base savings account pays interest on all balances.

APY

Minimum Balance to Earn APY

0.03%

$0+

  • Minimum opening deposit: $100
  • Monthly account maintenance fee: $3, waived with $300 deposit
  • ATM fee: $0 for network ATMs; $2.50 for others
  • ATM fee refund: None

Heritage Bank’s most basic savings account has a low minimum deposit requirement paired with a low monthly maintenance fee that can easily be waived. The ATM and overdraft fee structure is the same as with the bank’s checking accounts, meaning no in-network ATM fees but high overdraft fees.

The Alpine Savings account pays the same interest rate on all balances, regardless of size.

As a savings account, Alpine Savings is subject to the Federal Reserve’s Reg D restriction on monthly withdrawals. Once you reach six or more withdrawals per cycle, you’ll pay a $10 fee for each instance thereafter.

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Heritage Peak Savings Account

Peak Savings offers a tiered interest rate schedule that pays higher interest on larger deposits.

APY

Minimum Balance to Earn APY

0.03%

$0 - $4,999.99

0.03%

$5,000 - $9,999.99

0.04%

$10,000 - $24,999.99

0.04%

$25,000 - $49,999.99

0.06%

$50,000 - $74,999.99

0.06%

$75,000 - $99,999.99

0.08%

$100,000 - $499,999.99

0.08%

$500,000+

  • Minimum opening deposit: $100
  • Monthly account maintenance fee: $10, waived with $2,500 deposit
  • ATM fee: $0 for network ATMs; $2.50 for others
  • ATM fee refund: None

The Heritage Peak Savings account may appeal more to those making larger deposits. The account minimum is higher on this account, but the more you deposit, the more you can earn, although rates currently plateau for deposits of $75,000 or more.

The bank does provide separate interest tiers for deposits of $100,000 to $499,999.99 and $500,000+, but for now, those rates are the same as those for deposits of $75,000. Since the bank specifies that these are different interest rate tiers, those higher deposit tiers might be the first to jump if rates increase in the future.

As with the Alpine Savings account, you’ll face the same $10 excess activity fee if you make more than six withdrawals from the Peak Savings account during any cycle.

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Holiday Club

The bank’s first type of specialty savings account is designed for savers looking to set aside small amounts for holiday savings.

APY

Minimum Balance to Earn APY

0.05%

$0+

  • Minimum opening deposit: $10
  • Monthly account maintenance fee: $0
  • ATM fee: n/a
  • ATM fee refund: n/a
  • Overdraft fee: $34 per instance, up to six times per day; additional $5 daily overdraft fee starting on the fourth consecutive business day of overdraft, assessed for up to 15 consecutive days; $5 overdraft protection transfer fee, per business day

The Holiday Club savings account is a simple savings account with a low minimum opening deposit and no monthly maintenance fee. Savers build up balances through automatic transfers or additional deposits throughout the year. On Oct. 31 of each year, the account balance is automatically transferred into a regular savings account.

As this is a holiday account, there is no ATM access; withdrawals made before the Oct. 31 payout will close the account. The kicker here is that the APY paid is higher than the bank’s Alpine account, and even higher than that paid for the lowest two tiers of the Peak savings account.

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Health Savings Account

The Heritage Health Savings Account is a standard HSA.

APY

Minimum Balance to Earn APY

0.03%

$0 - $999.99

0.03%

$1,000 - $2,499.99

0.03%

$2,500 - $4,999.99

0.05%

$5,000 - $9,999.99

0.07%

$10,000+

  • Minimum opening deposit: $0
  • Monthly account maintenance fee: $2, waived with $2,500 balance
  • ATM fee: $0 for network ATMs; $2.50 for others
  • ATM fee refund: None

If you participate in a qualified high-deductible health plan, or HDHP, you may contribute to a Heritage Bank HSA. Contributions are subject to IRS limits. Since the Heritage Health Savings Account is an individual account only, contributions for 2018 are limited to $3,450, per the IRS.

How to open Heritage Bank’s savings accounts

Heritage Bank has one standard online application for all types of accounts, so opening a savings account requires the same steps as opening a checking account.

You can open any account online in about 10 minutes. The intuitive progress indicator guides on the left side of the page as you go through the following steps:

  • Account selection
  • Account options
  • Account disclosures and agreements
  • Applicant information
  • Account usage
  • Final look
  • Account approval

To qualify for an account, you’ll need:

  • A Social Security number
  • A valid form of government-issued ID, such as a driver’s license, state ID or passport
  • A funding source for the account, such as a checking or savings account, or a credit or debit card
  • Your prior address, if you have moved in the past two years

If you’re in Washington or Oregon, you can open an account at one of the bank’s branches. Another option is to call the customer service line. Lines are open from 7:30 am to 6:00 pm, Monday through Friday, and 9:00 am to 1:00 pm on Saturday.

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on Heritage Bank (WA)’s secure website

Member FDIC

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How Heritage Bank’s savings accounts compare

Unlike many of its competitors, Heritage Bank pays interest on all of its savings accounts, even for deposits as low as $0.01. Additionally, the bank’s savings accounts have low minimum deposits and carry low monthly fees that can be waived. However, interest rates across the board fall below the national average, even for the most generous account at the highest deposit tier. The disparity is even worse when Heritage Bank is compared with the highest online savings rates available.

The two specialty savings accounts give customers additional options for holiday or health care savings, which is a nice distinction from some other banks. All of the savings accounts can be used as reserve accounts for overdraft protection against the bank’s checking accounts, which can help reduce the onerous overdraft fee charged on all Heritage Bank accounts.

Heritage Bank’s CD Rates

Flex-Term CDs

Term

APY

Minimum Balance to Earn APY

3 - 5 months

0.03%

$0 - $24,999.99

3 - 5 months

0.05%

$25,000 - $49,999.99

3 - 5 months

0.10%

$50,000+

6 - 8 months

0%

$0 - $24,999.99

6 - 8 months

0.10%

$25,000 - $49,999.99

6 - 8 months

0.10%

$50,000+

9 - 11 months

0.05%

$0 - $24,999.99

9 - 11 months

0.10%

$25,000 - $49,999.99

9 - 11 months

0.10%

$50,000+

  • Minimum opening deposit: $2,500
  • Minimum balance amount to earn APY: $0
  • Early withdrawal penalty: 3 months’ interest

Heritage Bank’s short-term CDs are known as Flex Term. Maturities are 11 months or shorter, and the CDs offer a tiered rate structure. The highest rates are paid on balances of $50,000 or more. If you need to take out your money before your CD matures, you’ll pay an early withdrawal penalty of a few months’ interest.

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Fixed Rate CDs

Term

APY

Minimum Balance to Earn APY

12 - 17 months

0%

$0 - $24,999.99

12 - 17 months

0.18%

$25,000 - $49,999.99

12 - 17 months

0.18%

$50,000+

18 months

0%

$0 - $24,999.99

18 months

0.18%

$25,000 - $49,999.99

18 months

0.18%

$50,000+

19 - 24 months

0%

$0 - $24,999.99

19 - 24 months

0.18%

$25,000 - $49,999.99

19 - 24 months

0.18%

$50,000+

30 months

0%

$0 - $24,999.99

30 months

0.15%

$25,000 - $49,999.99

30 months

0.18%

$50,000+

36 months

0%

$0 - $24,999.99

36 months

0.18%

$25,000 - $49,999.99

36 months

0.18%

$50,000+

48 months

0%

$0 - $24,999.99

48 months

0.18%

$25,000 - $49,999.99

48 months

0.18%

$50,000+

60 months

0%

$0 - $24,999.99

60 months

0.20%

$25,000 - $49,999.99

60 months

0.20%

$50,000+

  • Minimum opening deposit: $2,500
  • Minimum balance amount to earn APY: $0
  • Early withdrawal penalty: 3 months’ interest for maturities of less than 12 months; 6 months’ interest for maturities of 12 months of more

Heritage Bank’s Fixed Rate CDs have maturities between 12 and 60 months. As with the bank’s flex-term CDs, rates for each maturity are divided into three interest-rate tiers. Higher rates are paid for larger deposits. The bank’s top rate is paid on deposits of $50,000 or more for the 60-month maturity.

Heritage Bank assesses an early withdrawal penalty if you need to take money out of your CD before it matures.

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Manager’s Special CDs

Term

APY

Minimum Balance to Earn APY

22-month bump-rate CD

0.40%

$0 - $9,999.99

22-month bump-rate CD

0.45%

$10,000 - $49,999.99

22-month bump-rate CD

0.50%

$50,000+

30-month CD

0.60%

$0 - $24,999.99

30-month CD

0.65%

$25,000 - $49,999.99

30-month CD

0.70%

$50,000+

  • Minimum opening deposit: $2,500
  • Minimum balance amount to earn APY: $0
  • Early withdrawal penalty: 3 months’ interest for maturities of less than 12 months; 6 months’ interest for maturities of 12 months of more

The Manager’s Special CDs can vary. Currently, the rates are not a big advantage over standard rates. The 30-month CD special is identical to the bank’s standard fixed rates, and the bump-rate CD starts lower than the standard rate, although it can rise over time.

As with the fixed-rate CDs if you need to withdraw money from your CD before it matures, Heritage Bank will assess an early withdrawal penalty that will cost you some of your interest.

How to get Heritage Bank’s CDs

If you’re opening a CD online, you’ll need to have a funding source, such as a checking or savings account, and you’ll have to be prepared to deposit at least the $2,500 minimum required for Heritage Bank CDs.

Next, you’ll need to verify your personal information. Valid identification options to open a CD account include any type of government-issued ID, such as a driver’s license or passport.

If you don’t want to open an account online, you can visit one of the bank’s branches. If you need help deciding on the type of CD you want to purchase, opening your account in-person might be a better option. One of Heritage Bank’s bankers can walk you through your options and help you select the right CD.

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How Heritage Bank’s CD rates compare

Across the board, Heritage Bank’s CD rates are below the national average. The best rate that the bank offers, on its fixed-rate, 60-month CD for deposits of $50,000 or higher, are the closest the bank gets to the national average. Rates don’t approach the best CD rates available from competitors.

Heritage Bank’s CD rates are tiered, so larger contributions can often earn you any additional interest. The best way to get the highest rates at Heritage Bank is to check the bank’s special rates, or to buy the CDs with the longest maturities.

Minimum purchase amounts are reasonable, although not as low as some other banks that offer $1,000 or even lower opening balance requirements.

Heritage Bank’s money market account options

Heritage Cascade Money Market Account

APY

Minimum Balance to Earn APY

0.05%

$0 - $4,999.99

0.05%

$5,000 - $9,999.99

0.08%

$10,000 - $24,999.99

0.08%

$25,000 - $49,999.99

0.10%

$50,000 - $74,999.99

0.10%

$75,000 - $99,999.99

0.10%

$100,000 - $499,999.99

0.14%

$500,000+

  • Minimum opening deposit: $1,000
  • Minimum balance to earn APY: $0
  • Monthly account maintenance fee: $10, waived with $1,000 deposit
  • ATM fee: $0 for network ATMs; $2.50 for others
  • ATM fee refund: None
  • Overdraft fee: $34 per instance, up to six times per day; additional $5 daily overdraft fee starting on the fourth consecutive business day of overdraft, assessed for up to 15 consecutive days; $5 overdraft protection transfer fee, per business day

Heritage Bank’s Money Market account has a high monthly fee, but it’s easy to avoid since the minimum opening balance of $1,000 is the same amount required to waive the charge.

There are numerous interest tiers to choose from with the Cascade Money Market account, with larger deposits earning higher interest. Rates top out on investments of $100,000 or more. However, even at the highest rates, the APYs on the Cascade Money Market account are low.

To prevent overdrafts, you can use the Cascade Money Market account as a source of funds. Overdraft protection is important at Heritage Bank because the related fees are so high. You’ll still pay a fee even with a backup account, but it’s greatly reduced.

Just like the bank’s savings accounts, you’ll have to keep your monthly withdrawals to six or fewer. This is due to federal restrictions in place at all financial institutions nationwide. Heritage Bank will assess an excess activity fee if you exceed this maximum.

How to get Heritage Bank’s money market accounts

As with other accounts at Heritage Bank, you can visit a branch to speak with someone in person or call the customer service line. You can reach a representative between 7:30 am to 6:00 pm, Monday through Friday, and 9:00 am to 1:00 pm on Saturday.

If you want to open an account online, follow the prompts on the webpage and provide the necessary information. You’ll need a valid ID and a way to fund your account, like another bank account.

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How Heritage Bank’s money market accounts compare

Although the rates on the Cascade Money Market step up with higher deposits, they remain below the national average regardless of amount. The top rates at Heritage Bank are about half the national average. When it comes to the highest available money market rates at other banks, Heritage Bank can’t compete. The account also has a high overdraft fee. The monthly maintenance fee is also high, but it can be easily waived.

Heritage’s IRA CD rates

Fixed-Rate CDs

Term

APY

Minimum Balance to Earn APY

12 - 17 months

0%

$0 - $24,999.99

12 - 17 months

0.18%

$25,000 - $49,999.99

12 - 17 months

0.18%

$50,000+

18 months

0%

$0 - $24,999.99

18 months

0.18%

$25,000 - $49,999.99

18 months

0.18%

$50,000+

19 - 24 months

0%

$0 - $24,999.99

19 - 24 months

0.18%

$25,000 - $49,999.99

19 - 24 months

0.18%

$50,000+

30 months

0%

$0 - $24,999.99

30 months

0.15%

$25,000 - $49,999.99

30 months

0.18%

$50,000+

36 months

0%

$0 - $24,999.99

36 months

0.18%

$25,000 - $49,999.99

36 months

0.18%

$50,000+

48 months

0%

$0 - $24,999.99

48 months

0.18%

$25,000 - $49,999.99

48 months

0.18%

$50,000+

60 months

0%

$0 - $24,999.99

60 months

0.20%

$25,000 - $49,999.99

60 months

0.20%

$50,000+

  • Minimum opening deposit: $100
  • Minimum balance amount to earn APY: $0
  • Early withdrawal penalty: 3 months’ interest for maturities of less than 12 months; 6 months’ interest for maturities of 12 months of more

Heritage Bank offers CDs with maturities from 12 months to 60 months in its IRAs. Rates paid are the same as with Heritage’s non-IRA CDs. The only difference is in the minimum required investment, which drops from $2,5000 in non-IRA accounts to just $100 in Heritage Bank’s IRA accounts.

Interest on Heritage Bank’s IRA CDs is compounded daily and credited monthly.

The same early withdrawal penalty that applies to Heritage Bank non-IRA CDs also applies to the bank’s IRA CDs. However, IRA accounts in general have additional IRS restrictions on withdrawals. Most IRA withdrawals are taxable as ordinary income, and if you’re under age 59 ½ at the time of your withdrawal, you’ll face a 10 percent IRS early distribution penalty.

How to get Heritage Bank’s IRA CDs

You can open a Heritage Bank IRA CD either online or in-person. Since the online application for the IRA CDs is the same as for all of the bank’s accounts, you’ll have to specify the type of account you want during the application process.

You can fund your IRA with nearly any type of account, from a checking or savings account to a credit card or debit card. The minimum required for an IRA CD is just $100. To complete the application, you’ll also need a valid ID, such as a passport or driver’s license.

If you’re more comfortable opening an account in person, you’ll have to visit one of the bank’s branches in Washington or Oregon. You can also call the bank for assistance.

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Member FDIC

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How Heritage Bank’s IRA CD rates compare

Heritage Bank’s IRA CD rates are identical to its non-IRA rates, and they are similarly below the national average across the board. As with the bank’s non-IRA CDs, the best rate you can get on a IRA CD is on a deposit of $50,000 or more for a term of 60 months. However, even Heritage Bank’s highest IRA CD rates don’t approach the best IRA CD rates available in the marketplace.

Heritage Bank’s IRA CD rates are tiered, so larger deposits may earn you any a higher APY. Minimum purchase amounts are a very modest $100.

Overall Review of Heritage Bank’s Products

Heritage Bank offers a full complement of products, from checking and savings to CDs, money market accounts and IRAs. Overall, opening minimums are low and account maintenance fees are easily waived through modest deposits.

The service levels on its checking accounts are very good. Customers opening the basic Heritage Bank checking account can participate in the bank’s “Dime-a-Time” rewards program, earning cash back on credit purchases using the provided Visa debit card. However, customers can access significant additional features with a modest increase in their minimum deposit amount. Starting with the bank’s Ascent checking account, customers gain access to the bank’s BaZinga awards, offering freebies ranging from roadside assistance to identity theft insurance.

The bank falls short mainly on the interest rates it pays. Across the board, from checking and savings accounts to money market and CD rates, Heritage Bank pays below-average rates that aren’t even close to the highest available from competitors. The bank also suffers from very high overdraft fees that can be charged multiple times per day.

For customers in the Pacific Northwest looking for a community bank with high levels of basic service, Heritage Bank is a good option. Those looking for the best rates across a range of products might want to look elsewhere.