Update 10/5/2009: IGO Banking has dropped their interest rates to 1.56%

iGobanking.com, a division of Flushing Savings Bank (NYSE: FFIC), is offering a 1.67% APY high-yield savings account.

I-GO-Banking’s online savings account offering is very similar to other online savings accounts in that it requires no minimum balance and charges no monthly account fees. The interest rate that it is offering is relatively competitive in today’s market, but is certainly not the highest. The account does not offer an ATM card or check writing privileges. Customers can make deposits via ACH transfer and customers can link up to 20 external accounts.

Although IGO Banking promotes that it charges “no fees”, like other online savings accounts, this is simply referring to the fact that the bank does not charge any monthly account fees. IGO Banking does charge $30.00 for an overdraft and a $10 early-account-closure fee if you close the account within the first 180 days of having the account.

IGO Banking uses the “cashedge” system for account opening and for transfers. This service is also used by HSBC Direct, FNBO Direct and many other online savings accounts. When opening an account, there are no hard credit pulls, so your credit score will not be lowered if you open a new account.

IGO Banking is part of Flushing Savings Bank, FSB which has approximately $1 billion in assets. The bank was founded in 1929 and is FDIC insured. Flushing Savings Bank parent corporation, Flushing Financial Corporation was organized as a Delware state-corporation in 1994. Both Flushing Savings Bank and Flushing Financial Corporation are headquartered in Lake Success, NY. Flushing Savings Bank has 14 offices in New York and is heavily invested in the real estate market. Flushing Savings Bank, FSB earns a 3-star “performing” rating from Bankrate.com