This Nova Bank Savings Account review unveils requirements, features, fees, and rates of return for Nova Bank’s best online savings accounts. They do offer Coverdell Education savings accounts as well as business accounts.

Initial Requirements for Nova Bank Savings

Nova bank only offers one average savings account for personal customers, so there are not very many choices. You must have an initial deposit of $250 in order to open an on line savings account with Nova Bank. You can fill out an application using Nova Bank’s online banking services, once you agree to their privacy and disclosure policies. You need only your basic information handy to fill out the application online and submit it.

Nova Bank Features and Fees

You do get a free ATM card with your online savings accounts, so be sure to change the default response of no ATM card to yes on the initial application. If this is a child’s savings account, there is no minimum balance requirement if they are under 18. For those over 18 there will be a $5 monthly fee, if you fall below the minimum daily collected balance of $250. A nice feature for online customers  is that Nova Bank will refund to you ATM fees up to $5 per statement cycle. You do have limited pre-authorized transactions on this FDIC insured account. The magic number here is 6. Any time you go over the magic number of pre-authorized withdrawals in a statement cycle and you will be charged $8 for every item over six. Do keep track of your ATM card and your pin, since replacing either of these will run you $15.

Rates for Savings Accounts through Nova Bank

Nova bank offers a single rate for savings accounts. This rate is currently 0.10 %APY (in Aug 2010, the rate is.20% APY). The single rate applies to the full balance and does not increase as your deposited amount increases. Interest is compounded daily and credited monthly. Since Nova only offers one option, when it comes to traditional savings accounts, this is the best savings account rate they have. It is kind of like the only son claiming to be the favorite son. When you only have one choice to offer it becomes the best choice by default, as opposed to merit.

Coverdell Education Savings Accounts

Nova Bank also offers a specialized savings account called the Coverdell Education Savings account. These savings accounts must be established for children who are under the age of 18. There are tax advantages to this account in that withdrawals that are made for qualified educational purposes are tax free. Please remember that contributions to this account are not tax free.

Summary of Nova Bank Online Savings Account

Honestly, if you are not already a Nova Bank customer, and even if you are, there are few advantages to Nova’s savings account. When you compare savings account rates, you will quickly find that Nova falls well below the national average and far below the rates earned in accounts with the top savings rates. If you could take your return and multiply it four or five times, wouldn’t you do it? Nova Bank does offer online banking services but many of their policies and fees do not serve an online customer as well as it serves a traditional one. Nova Bank’s savings account does not qualify to be called a high yield savings account. To learn more about Nova bank please consider perusing our full bank review on Nova.

Are you looking for information on top saving accounts? Bank Truth has many posts on various savings accounts to help you find the best savings rates.