A Japanese Fix for American Savings: 1.25 Percent Interest

Savers, here's what it's come to: Barclays is bragging that its 1 percent interest on an online savings account is 12 times the U.S. average.

Ugh.

Yes, that offer really is among the highest you'll find on a savings account in a search on bankrate.com. But it's now topped by an offer that just came out from a just-launched, savings-only division of New York-based MUFG Union Bank. The new entity, PurePoint Financial, offers a rate of 1.25 percent on a savings deposit of at least $10,000, and 1.4 percent on a $10,000, 12-month certificate of deposit.

If those rates still don't seem like much to celebrate, a little perspective might make them more attractive: The main lending unit of MUFG Union Bank's parent, Tokyo-based financial services giant Mitsubishi UFJ Financial Group, pays retail savers in its home country a barely discernible rate of 0.01 on fixed-term deposits of up to 10 years.

All that PurePoint Financial offers, as a "hybrid digital bank," are no-fee, FDIC-insured savings accounts and CDs. Its president, Pierre Habis, says it will have "consistent top-of-the-market" interest rates, not just teaser rates for a limited period. There are no checking accounts, debit cards, or networks of ATMs.