In today’s climate of low interest rates and concerns about what’s next for banking, many customers are looking for new opportunities. One consideration is Aurora Bank. The bank is actively looking for new depositors, and, as a result, is offering some fairly competitive yields on its accounts. Aurora Bank might be just the thing if you are looking for a high-yield account for your emergency savings.
History of Aurora Bank
Many people are a little wary of Aurora Bank because of who owns it: Lehman Brothers. The bankrupt company is supposed to sell Aurora Bank by 2012, though. This means that some of the policies could change when the new owners take control. However, you shouldn’t let the current owner of Aurora Bank scare you off; the institution is FDIC insured so that your money is safe in the event of a bank failure.
It is worth noting that Aurora Bank has been around since 1921, when it was founded as the Delaware Savings And Loan Association. Even through different owners and some trying times, the bank is still going strong, and is rated at four stars by Bankrate.com.
Products Offered by Aurora Bank
One of the most attractive accounts offered by Aurora Bank is its savings account. You can also open a money market account. You can link these accounts to others as part of overdraft protection, and you receive an ATM card for quick access. Rates are competitive and compounded daily, with interest earnings posting to your account each month.
You should be aware, though, that Aurora Bank does have minimums on its accounts, and you can pay fees if your average daily balance dips below the minimum. For regular savings accounts, the minimum is $500, and for money market accounts the minimum is $1,000. These are definitely accounts for long-term emergency savings, and not accounts that you want to be frequently withdrawing money from.
Also, realize that you won’t be earning interest on the money market account unless you meet the minimum requirement. You will also be charged a monthly fee if you allow the account to go dormant (without activity for three years). This means that you will need to make sure you have some plan for at least making deposits on some sort of regular schedule.
Aurora Bank also offers CDs with competitive yields.
Bottom Line
Aurora Bank may not be the best bank out there, but it offers competitive rates and access to your money via ATM. Your money is safe with Aurora Bank. However, before choosing an account, it is best to shop around.
