Webster Bank Review

Webster Bank Premier Savings Extra

0.02% APY

Connecticut-based Webster Bank is a regional bank that provides an array of personal banking services to its customers. It has a variety of checking and savings account options, from a low-fee eChecking account, to its high-end “Premier” savings account.

Customers who put down a large deposit to enroll in one of these Premier accounts gain access to excellent interest rates on CDs, and decent rates on other savings vehicles. If you do not have five thousand or more dollars starting out, however, you will find that Webster’s rates are not particularly attractive.

Products Offered

Webster Bank Interest Rate Comparison

Webster Bank Overview

Founded in 1935 in Waterbury, Connecticut, Webster Bank has established itself as one of the top regional banks in the northeast United States. It has 163 locations, spread among four states: Connecticut, Massachusetts, Rhode Island and New York. The majority of its locations are in Connecticut.

Webster offers numerous personal banking products and services. This includes credit cards and mortgages, in addition to a variety of checking accounts and savings accounts. Rates on savings vehicles are generally fairly low, though higher rates are offered for accounts with higher balances.

Webster Bank Account Features

With its checking and savings accounts, Webster Bank provides lots of different options. For example, it has five types of checking accounts. These accounts tend to have similar features, such as free online and mobile banking, and free ATM access. 

The largest differences between account types are the interest rates offered, and the minimum balances required to avoid a monthly fee. Webster Bank also offers higher interest rates on CDs and access to higher-interest savings accounts to customers with a WebsterOne or Premier checking account.

Webster Bank Savings Accounts: Webster Value Savings, WebsterOne Savings, Premier Savings and Premier Savings Extra

Webster offers four different types of savings accounts. Only one of them, Webster Value Savings, can function as a stand-alone account; the other three have to be paired with a checking account. To open a WebsterOne Savings account you must also have a WebsterOne Checking account. To open either a Premier Savings or a Premier Savings Extra account, you must have a Premier Checking account.

Webster Value accounts offer a flat rate of 0.01% APY on all deposits, but the other types of savings accounts have a tiered rate system, with one account having higher rates for larger deposits. Rates on these accounts are not particularly high if you are not depositing six figures, but they do beat larger national banks. 

There is a $5 monthly service fee on WebsterOne and Webster Value accounts. The fee is waived for people who are younger than 21 or older than 65, and for all accounts with a minimum monthly balance of $300.

The monthly service fee on Premier Savings Extra accounts is $10, waived for accounts with a monthly balance of at least $10,000. There is no fee on Premier Savings accounts.

Webster Bank Certificates of Deposit

If your priority is a higher interest rate at Webster Bank, then a certificate of deposit is your best bet. Rates for Webster’s CDs are fairly high as compared with national averages. When paired with a Webster checking account, rates on 3 year CDs are 0.20% (annual percentage yield), and 5-year CDs have a rate of 0.30%. 

The minimum opening deposit for a CD at Webster Bank is $500. However, to earn top rates you must also have a Webster Checking account (which requires deposits of $4,000 across checking, savings, and money market accounts).

There are no fees on CDs at Webster Bank, unless you want to withdraw your money before the end of your term. The early withdrawal penalty is equal to $25 plus 1% of the amount withdrawn (for CDs less than a year) or 3% (for CDs longer than a year).

Webster Bank Money Market Savings Account

While money market accounts at some banks offer an opportunity for higher rates than a basic savings account, Webster Bank does not give much of a premium for deposits in a money market account. For deposits of less than $10,000, the rate on the Webster Bank Premium Money Market Savings account is equal to the rate on a WebsterOne Savings account, for example.

The most significant difference between a money market account and a regular savings account at Webster is the minimum deposit. A money market account at Webster requires a minimum deposit of $2,500. To avoid the monthly service fee of $10 you need to maintain a deposit of at least $2,500.

Otherwise, a money market account with Webster Bank is very similar to other savings account options. The account comes with a Visa debit card, which can be used to withdraw money for free from Webster ATMs. Online and mobile banking are also free.

Webster Bank Checking Account

There are a plethora of checking account options at Webster Bank. Though they share many of the same features, there are some important distinctions for anyone who is thinking about opening an account.

First and foremost are the monthly fees and minimum account balances. There is a monthly service fee on all accounts, ranging from $11.95 to $21.95. 

For all other accounts, you have to maintain a certain average balance to avoid the fee. For instance, Value Checking requires an average balance of $1,000. Premier Checking, the most expensive account, requires an average balance of $10,000 combined across savings, checking and money market accounts. If you want to incorporate CDs, home equity and installment loan accounts, then the threshold to avoid the fee is $50,000.

The main reason Premier and WebsterOne accounts require larger balances is that they allow you to access higher interest rates on Webster CDs and savings accounts, as well as some discounts on loans such as home equity loans and mortgages. 

Premier accounts also have free ATM access to all ATMs, including non-Webster ATMs. At these ATMs, Webster will pay any owner fees. Other checking accounts have free access only to Webster ATMs, of which there are about 300, spread throughout their states of business.

Where Can I Find Webster Bank?

Webster does business in four states: Connecticut, Massachusetts, Rhode Island and New York. The vast majority of its locations are in Connecticut. Its New York and Massachusetts locations are limited to small areas. They do not have any locations in New York City or Boston.

What Can You Do Online With Webster Bank?

Webster offers free online and mobile banking with all accounts. Features include mobile check deposit, electronic bill payment, transfers between accounts and account statements. You can also check recent transactions on debit and credit cards.

We should note that Webster’s app is poorly rated on the Apple app store. It has just 1.7 stars out of five, with 76 reviews.  

How Do I Access My Money?

If you need cash, you can withdraw money for free at a Webster ATM. The bank has roughly 300 ATMs, most of them in Connecticut. Webster charges a $2.50 fee for most uses at non-Webster ATMs, in addition to any ATM owner fees, though some accounts are exempt. You can also check account balances and transfer money using Webster’s mobile app or website.

How Can I Save More Money With Webster Bank?

The best opportunity to increase savings with Webster Bank comes through the higher rates the bank offers to those with a Premier or WebsterOne Checking Account. If you open one of those accounts, you gain access to CD rates as high as 0.50% for a two-year CD. 

Those accounts have fairly high minimum balances, however. For example, to avoid paying a $16.95 ($14.95 with direct deposit) monthly service fee on a WebsterOne Relationship account, you need to maintain a balance of at least $4,000 across checking, savings, and money market accounts. That means you would need at least $5,000 to open a CD with the higher rates (the minimum balance for a CD is $500).

What’s the Process for Opening an Account With Webster Bank?

You can open a savings or checking account through the Webster Bank website. To do so you will need your Social Security number, driver’s license and employment information. With that information in hand, the process is fairly quick, lasting less than 20 minutes. Make sure to check the minimum account balances to avoid service fees (described above), so that you can open your account with sufficient funds.

What’s the Catch?

Webster has a very regional footprint, limited to Connecticut and nearby portions of a few states. Accessing your money outside of that footprint will be a challenge unless you have a Premier Checking Account (Webster covers ATM fees for these accounts). 

Additionally, Webster’s rates on savings and money market accounts are not particularly high. These accounts typically earn just a few fractions of a percent, somewhat lower than national averages. Higher rates are reserved for customers who open one of Webster’s high-end checking accounts, Premier and WebsterOne.

Bottom Line

If you live and work in Connecticut, Webster Bank offers an acceptable local option for your personal banking needs. It offers a complete array of banking services. Interest rates are not particularly high on most accounts, though higher interest rates are available to customers who open certain elite checking accounts.