Bank Provident Online is the online-only arm of The Provident Bank. Their savings accounts offer unlimited insurance on bank deposits.
While many banks offer FDIC insurance, the FDIC only insures up to $250,000 in bank deposits. Any deposits that exceed this limit are not guaranteed insurance by the FDIC. Having more than $250,000 in bank deposits is certainly a good problem to have. But it does make it more difficult to make certain that your money is fully protected.
However, by offering two forms of insurance, Bank Provident Online is able to promise full protection for all your bank account funds, no matter the amount. Plus accounts that exceed the $250,000 FDIC limit earn a competitive yield.
But the APY on its savings accounts are less attractive for accounts with smaller balances. And accounts with less than $50,000 in deposits don't earn any interest at all. Learn more about Bank Provident Online in our full review below.
- Unlimited deposit insurance
- Balance of $250,000 or more required to earn highest APY
- No monthly service fees or minimum balance requirements.
Bank Name Details
Bank Provident Online
Up to 1.15%
Who Is Bank Provident Online?
Bank Provident Online, as branded by its website, is a completely online component of The Provident Bank — a traditional commercial bank with branch locations in Massachusetts and New Hampshire. The Provident Bank is the 10th-oldest bank in the United States.
Note: The Provident Bank and Bank Provident Online are not affiliated with Provident Bank, a full-service bank which serves New Jersey and Pennsylvania residents.
What Do They Offer?
Bank Provident Online offers a high-yield savings account with unlimited insurance. For FDIC-insured deposit accounts, the maximum that can be insured is $250,000 per depositor, per bank. It's able to insure above $250,000 through DIF, which is a private insurance program used by some banks.
What Is DIF?
DIF stands for Depositor’s Insurance Fund. Unlike the FDIC, which is a government entity with the full backing of the U.S. government, DIF is a private, industry-sponsored organization. It has over $270 million in assets and $100 million in reinsurance.
DIF insurance covers all types of deposit accounts, including:
- Savings accounts
- Checking and NOW accounts
- Certificates of deposit (CDs)
- Bank money market accounts
- IRA deposit accounts
DIF has always paid deposits and associated interest up to its insurance limits. No depositor has ever lost funds with an account that has both FDIC and DIF insurance. There are no fees or applications to fill out for receiving DIF insurance on your account. It's applied automatically.
For those who have more than $250,000 to deposit, there are a few ways to work around the FDIC insurance limit if you're willing to put up with some hassle. But because Bank Provident Online basically provides unlimited insurance, these workarounds are no longer necessary. Depositors can have full faith that funds in excess of $250,000 will be fully protected.
Bank Provident Online’s Savings Product
The only product offered by Bank Provident Online is a high-yield savings account. For accounts with balances above $250,000 that are able to take advantage of unlimited insurance, they’ll earn a 1.15% APY.
In addition to not being charged fees, this is certainly a benefit compared to spreading your funds across multiple banks. Interest rates are broken into tiers. As of 4/15/20, rates are as follows:
- $0.00–$49,999.99 = 0.00% APY
- $50,000.00–$249,999.99 = 0.75% APY
- $250,000.00 Or More = 1.15% APY
While the bank does offer unlimited insurance on deposits, which is great for larger accounts, it falls short for smaller accounts. For balances under $250,000 (especially under $50,000) you’ll do better to look for an online FDIC-insured bank offering a higher yield.
Deposits And Withdrawals
The initial deposit to open an account is $1,000 and the only way to get money into the account is through a wire transfer. Most banks charge about $30 for each wire transfer. Although, with some banks, such as Bank of America, you can do a next-day transfer for only $10.
Bank Provident Online is probably restricting transfers to wire-only because it is expecting larger movements of funds (think tens or hundreds of thousands of dollars at a time). It's likely that someone depositing $300,000 into a savings account won't need those funds for a while which makes the $30 wire transfer fee negligible. But those who expect to move money into and out of their account regularly should look into a different bank.
Are There Any Fees?
No, there are no monthly service fees. However, since wire transfers seem to be the only way to deposit or withdraw funds, you’ll will incur a fee whenever you move money in or out your account.
How Do I Open An Account?
Accounts are opened completely online. You'll be asked to provide the following information on your application:
- First and last name
- Personal email address
- Primary phone number
- Home/mailing address
- Date of birth
- Social security number
- Driver's license/passport information
Is My Money Safe?
Yes. As previously emphasized, Bank Provident Online offers both FDIC and DIF insurance. It is able to insure deposits of any amount and accounts of any size. Additionally, it uses encryption on its website.
Is It Worth It?
For deposits that exceed the FDIC limit, yes — Bank Provident Online has a compelling offer. You can keep all of your funds at one bank, which means one login and one statement. Additionally, you’ll earn a decent 1.15% APY and won’t have to worry about fees (except wire transfer fees).
Everyone else, however, may want to look at other high-yield savings accounts that don't require high minimum balances to earn the best rates. Bank Provident Online is really designed for accounts with north of $250,000 in deposits. If that's not you, then one of the other top online banks of 2020 will probably be a better fit.
Bank Provident Online Features
Minimum Balance Requirements
7 locations throughout Massachusetts and New Hampshire
Customer Service Number
Customer Service Hours
Monday – Friday: 8 am – 6 pm
Self-Service Telephone Banking Number
Self-Service Telephone Banking Availability
Mobile App Availability
Deposit Insurance Fund (DIF) Member
Bank Provident Online Review
- Interest Rates
- Fees and Charges
- Customer Service
- Ease of Use
- Tools and Resources
- Products and Services
Bank Provident Online is the online-only arm of The Provident Bank. It offers unlimited deposit insurance on its high-yield savings accounts by combining FDIC and DIF insurance coverage.
- Unlimited deposit insurance
- Attractive yield for account balances of $250,000 or more
- No monthly service fees
- Easy online application
- No interest earned on accounts below $50,000
- Wire transfer required for deposits
- No branch availability outside of Massachusetts and New Hampshire
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him here and here.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.