Thursday, 3 December 2020

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

Webster Bank Review: Checking, Savings, CD and Money Market Accounts
30 Oct
2:29

Webster Bank’s Most Popular Accounts

APY

Account Type

Account Name

Compare Rates from Similar Accounts

0.02%

Savings

Webster Bank Webster Value Savings

1.90%

American Express National Bank High Yield Savings Account

on American Express National Bank’s secure website

Member FDIC

2.25%

CD Rates

Webster Bank 11 Month CD

2.55%

Goldman Sachs Bank USA High-yield 12 Month CD

on Goldman Sachs Bank USA’s secure website

Member FDIC

2.50%

CD Rates

Webster Bank 3 Year CD

2.85%

Synchrony Bank 36 Month CD

on Synchrony Bank’s secure website

Member FDIC

2.25%

CD Rates

Webster Bank 5 Year CD

3.10%

Goldman Sachs Bank USA High-yield 5 Year CD

on Goldman Sachs Bank USA’s secure website

Member FDIC

Webster Bank’s checking account options

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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

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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

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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

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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.

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

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Source: https://www.magnifymoney.com/blog/reviews/webster-bank/

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