If you’re in the market for a high yield savings account that can be managed 100 percent digitally, then you may want to check out BrioDirect and their high yield savings account.
The account currently holds one of the highest APYs (annual percentage yield) on the market at 3.75% APY and is FDIC-insured up to the applicable limits – $250,000 per depositor and $500,000 for joint accounts.
Along with this online savings account, BrioDirect also offers CDs and a money market account. For the purpose of this review, we will focus only on the competitive high yielding savings account.
BrioDirect is the online division of Webster Bank which was founded in 1935 and is publicly traded on the NYSE (WBS). BrioDirect offers FDIC insurance through Webster Bank. If you choose to open BrioDirect’s high yield savings account you will become a client of Webster Bank, but will interface only with BrioDirect. If you already have a deposit account with Webster Bank, this will affect your FDIC insurance limits and should be taken into consideration.
BrioDirect Savings Rate + Account Details
A BrioDirect high yield savings account can be opened with just $25 and the online application process can be completed in just minutes.
To put this yield into perspective, the current national average for a savings account sits at just 0.24% APY according to FDIC data. On top of that there are only a very small handful of FDIC-insured online banks offering savings rates above 3.60% APY as of the time of this writing.
That said, with inflation still stubbornly high and the FED continuing to make rate hikes (albeit likely smaller ones), we expect savings rates to continue their ascent as well.
How to Open the Account
Opening a BrioDirect savings account is fairly straightforward and can be completed in minutes if you have all the necessary items and information handy prior to starting the application we process.
Here’s what you need to get started:
- Contact information (address and phone number)
- Driver’s license, passport OR state ID
- social security number
Once approved funding the account is also quite easy. The fastest way is to set up an ACH transfer from your current checking account or savings account.
You can also fund the account via physical check or wire transfer. Just note that wire transfers generally come with a fee.
Managing the Account
When managing your online savings account with BrioDirect you have a few different options. You can download their IOS or Android app which have a rating of 4.9 stars out of 5 and 5.0 stars out of 5, respectively.
If you’d rather use the web, you can simply login to your account at briodirectbanking.com and view your balance, statements, or make any transfers you may want.
You can also track all of your transactions via complimentary e-statements from BrioDirect, however if you would like physical copies of these sent to you then there is a $5 fee per paper statement.
Remember, like most online savings accounts, BrioDirect’s high yield savings comes with a variable rate meaning it can change at any time without notice.
That said, in rising interest rate environments like we have currently, these can be beneficial as they will generally rise with the Federal funds rate.
Given that the FED is likely to continue to raise rates throughout the remainder of the year to combat inflation, we would expect this account as well as the entire market to also see rising rates.
How is it decided if the rate goes up or down?
BrioDirect states that they ‘regularly monitor market conditions and take many factors into consideration, including but not limited to, current market conditions and the federal funds rate’ when determining both when and by how much to raise or lower rates.
How does the Federal Funds Rate impact BrioDirect’s rate?
BrioDirect states that they ‘consider changes to the federal funds rate when determining the rates that they offer.’ They also note that “rates everywhere may be impacted when the federal funds rate changes.”