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Clear Sky Online Savings Account 3.75% APY

Reader Jeff, which did a considerably amount of research on the FDIC insurance of Dollar Savings Direct [3], recently emailed me a brand new online savings account offering 3.75% APY – Clear Sky Accounts [3]. With a $1 minimum and the top rate amongst online banks, it’s certainly going to be a hit amongst personal finance enthusiasts. I wouldn’t shift my online savings to Clear Sky from other high yield savings accounts, the transportation time reduces the effective rate tremendously, new funds might find a comfortable home there, especially since they will stand by that 3.75% APY rate through the end of March.

But, a high rate is not enough… is it a reputable bank?

Clear Sky Accounts is offered by Chesapeake Bank, a Kilmarnock, VA bank that is FDIC insured under FDIC Certificate #6862 [4]. According to the FDIC, Chesapeake Bank has been in business since January 1st, 1900 and insured since the start of FDIC insurance in 1934. They have a four star rating under Bankrate’s Safe & Sound rankings and their memorandum [5] on the bank shows they are in solid financial standing (strong earnings, high asset quality, etc).

Jeff, in his research, did find one little “catch:”

A possible “catch” to some. I’ve heard – although I have yet to find it in the small print – that Clear Sky/ Chesapeake has posted a limit of $10,000 per day on external ACH transfers. When I telephoned the Bank (877-257-7594) to ask if this were true, the representative said in effect: “Yes, that is our posted policy, but if you telephone us and ask us to waive that limit for you on a given occasion, we’ll try to accommodate you.” Put otherwise, the Bank is reserving the right to limit its depositors to $10,000 a day, and it says, in a non-binding way, that it won’t necessarily insist on enforcing that policy.

They also have very competitive checking accounts (2.50% APY – 3.25% APY) and competitive certificate of deposit rates (3.30% APY on a 13 month CD would make it one of the “short-term” best CD rates available). If you haven’t opened an online bank account anywhere, give Clear Sky from Chesapeake Bank a look. Do your own due diligence and see if it’s a good choice for you.