October 30, 2018

Webster Bank Review: Account Good for You?

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Webster Bank offers bank accounts for those just starting out as well as those looking for a "premier" bank account. Do their services live up to your needs? Keep reading to find out.

Webster Bank has been in business since 1935. It's primarily a Northeastern region bank, as its 169 branches are located throughout the Northeast.

Webster Bank caters to clients that have $5,000 or more to put into a checking or savings account by providing them with higher interest rates on checking, savings, and CDs. Even though you can open many accounts at Webster Bank with just $5, you are much better off with higher balances.

Services Offered

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Checking

Webster Bank has five checking accounts to choose from, helping to make it easy to find the account that meets your needs. Each Webster Bank checking account comes with free online and mobile banking, free online bill pay, and a free debit card.

  • Premier Checking: This is the top-tier checking account offered by Webster Bank. With this account, you won't pay a fee for using non-Webster Bank ATMs. Webster Bank will also reimburse any fees you get charged from third-party banks. This account also includes free incoming wire transfers and the highest interest rates out of any Webster Bank account. In order to waive the monthly service fee, you'll need a balance of at least $10,000 in your checking, savings, or money market accounts at Webster Bank.

  • WebsterOne Relationship Checking: This account offers a flat-rate interest rate and requires a minimum $5,000 balance in your Webster deposit accounts. Webster Bank won't charge you for using a third-party ATM, but you may pay a fee to the host bank. This account also gives you access to a WebsterOne Savings account.

  • Webster Value Checking: This basic checking account doesn't pay any interest, but it only requires a $1,000 balance in order to avoid the monthly maintenance fee. If you don't have a $1,000 balance, you can also get the fee waived by making at least 10 debit card transactions.

  • Webster Student Checking: If you are a college student, this bank account may be just what you need. Webster Bank doesn't charge monthly maintenance fees and provides you with four ATM fee waivers for using non-Webster Bank ATMs each month. After five years, Webster transfers the account to a standard checking account.

  • Opportunity Checking: If you've had trouble getting a checking account, you may need a second-chance account like Opportunity Checking. With just $50, you can open this account. It comes with a free debit card and access to the standard options Webster checking accounts offer. The one exception is your Visa debit card transactions are limited to $250 per day.

Savings

  • Premier Savings Extra: If you are a Premier Checking account customer, you are eligible to open a Premier Savings account. You'll need a balance of at least $10,000 to waive the monthly service fee. The higher your balance, the more interest you'll earn as this account offers tiered interest rates.

  • Premier Savings: If you have a Premier Checking Account, you can opt for the Premier Savings. This account doesn't have a monthly service fee, but the interest rates are slightly lower than the Premier Savings Extra account.

  • Webster One Savings: If you have a Webster One Checking account, you can open a Webster One Savings account. You need just a $300 balance to avoid the monthly service fee. You'll earn tiered interest rates on this account, so the more money you have in the account, the more interest you'll earn.

  • Premium Money Market: If you have at least $1,500 to open an account and will keep a balance of $2,500 each month, the Money Market Savings account is a good option. This account offers tiered interest rates, but doesn't require you to have any other Webster accounts.

  • Webster Value Savings: This basic savings account requires a $300 average monthly balance to waive the monthly service fee. You'll earn a fixed interest rate no matter how much you have in the account, but the peace of mind of the lower monthly balance requirement may be helpful.

CDs

  • Traditional CD: Choose from a variety of maturity dates and earn fixed-rate interest on your money. If you have a Premier or WebsterOne account, you'll have access to higher interest rates.

  • 3-Year-Bump-Up CD: If you worry about rates increasing and you missing out on interest, the 3-Year-Bump-Up CD allows you to bump up your rate one time in a 3-year period. You must have a WebsterOne or Premier account to be eligible for this CD.

Reasons We Like Webster Bank

  • Students can open a checking account with as little as $50. This can make it easy to open a checking account, as many checking accounts require higher opening deposits and/or minimum balance requirements.

  • You can open a savings account with just $5. If saving money is hard for you, you can start with just $5. With the account open, you may be more likely to start saving. Whether you set up direct deposit with your employer or you manually transfer funds online, you will earn more interest the more money you deposit in your savings account.

  • You can open a savings account strictly to save for the holidays. The Holiday Club Savings helps you save money for the holidays by setting up automatic payments to the account. Your balance earns interest and you will receive a check for the full amount in your account during the third week of October to help you be ready for the holidays.

  • You can deposit checks with the mobile app. All you need to do is take a picture of the front and back of your check in the Webster Bank app. You then follow the prompts in the app. Within minutes, you can deposit your check from the comfort of your own home.

  • You have two options for overdraft protection. If you have a Webster Bank savings account, you can link it to your checking account for overdraft protection. If you don't have a savings account or don't want to link the account, you can apply for an Overdraft Line of Credit. You may be able to get a credit line of up to $5,000. Note: There is a transfer fee for each time Webster Bank must transfer funds for you.

  • The online bill pay service allows you to set up recurring payments or future-date payments, as well as schedule payments or set alerts so that you don't miss your due dates anymore.

  • You can conduct your online banking on your computer, mobile phone, or tablet with the Webster Bank app. You can perform the same tasks you can do online in the app, giving you access to your accounts on-the-go.

  • Webster Bank offers special deals for veterans, whether retired or on active duty. A couple of examples include waived monthly maintenance fees and no charge for using non-Webster Bank ATMs.

  • Webster Bank is FDIC insured. This means your deposits, up to $250,000 per account, are covered. If Webster Bank were to go out of business, the insurance would reimburse the funds you may have lost.

  • You can open an HSA (Health Savings Account) at Webster Bank. Your pre-tax dollars can then be used for your medical expenses. This can help lower the cost of your medical bills, especially when you combine the HSA with your health insurance.

Reasons You May Want to Look Elsewhere

  • They only have two stand-alone savings accounts. In other words, if you don't have a Webster Checking account, you will not be eligible to open any savings account, except the Webster Value Savings account or the Premium Money Market Savings account.

  • Webster Bank is only located in 5 states. A majority of the branches (116) are located in Connecticut. The remaining branches are located throughout Massachusetts, New York, and Rhode Island. There is also one branch located in Wisconsin.

  • Unless you have a large amount of money to deposit in your Webster Bank account, you will likely receive minimal interest rates. You may be better off finding an online bank that offers higher interest rates to give you a greater return.

How It Compares

Bank of America
Bank of America is a national bank with branches in 35 states throughout the US. Bank of America doesn't have the variety of checking and savings accounts that Webster Bank has. Bank of America also doesn't offer interest on every checking account. The convenience of their locations may offset the minimal interest earned, though.

Wells Fargo
Wells Fargo far surpasses Webster Bank in terms of the number of branches at your disposal. You probably won't get the same "local bank" feeling with Wells Fargo as you would with Webster Bank because of their large network. Wells Fargo also offers "second chance" checking and student checking accounts.

TD Bank
While not a nationwide bank, TD Bank does have more branches than Webster Bank. TD Bank has a variety of options, including money market accounts, which many banks today don't offer. TD Bank's branches often have extended hours, which can be helpful if you tend to bank during "off-hours."

Bottom Line

Webster Bank can be a great regional bank if you live in one of the states in which it's located. With its large variety of checking accounts and the ability to earn competitive interest rates on your savings, it can be a good option for those who don't want to use an online bank.

Disclaimer: Opinions expressed here are author's alone. Please support CreditDonkey on our mission to help you make savvy decisions. Our free online service is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content.

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