Update 6/29/10: The yield has fallen from 1.25% to 1.20% APY. Refer to the bottom of the post for the rate history.
Nationwide Bank is offering an online money market account which currently has a competitive yield of 3.90% APY for all balances. There's a minimum balance requirement of $1,000 to avoid a $8/month fee. Like any liquid account, the rate could change at any time. According to the CSR, the rate has remained at 3.90% for the last two weeks, and before this it was 4.35%.
I'm glad to see that it seems to have a solid ACH transfer service. There have been too many new online banks that have lacked this feature. Here are some of Nationwide's ACH features based on their FAQs and my conversation with the CSR:
- ACH transfer service that allows you to initiate transfers to and from other bank accounts
- No limit on the number of linked accounts (according to CSR)
- Limit of 6 outgoing ACH withdrawals per month (as required by law). $5 for each transfer after 6.
- Transfer limit of $500,000
- Transfers can take up to 5 days to clear but normally take 3 days. [ Update: Readers have reported very slow ACH transfers with delays of 5 days or more.]
Some of the notable features related to opening the account include:
- $1,000 minimum deposit to open account
- Can be funded electronically with an ACH transfer or by mailing a check
- You will have access to funds in your new deposit account once you fund the account, receive the fulfillment package and return the signature card bearing the signatures of all account owners.
- Free first order of checks
- Minor custodial accounts (UGMA,UTMA) can be opened
- Free ATM card upon request
- Only a ChexSystem verification and soft credit pull (according to CSR)
Some of the notable ongoing account features include:
- $1,000 minimum balance to avoid $8/month fee
- Access to Allpoint surcharge-free ATMs and Visa/PLUS ATMs
- Two free non-Nationwide Bank ATM transactions per month (no refunds of fees charged by ATM owners)
- Online statements; paper statements available at no additional cost
- Account information downloadable in .OFX format for finance software
- Next Day ACH transfers cost $15
- Wire Transfer fees: free for incoming, $15 for outgoing
- no postage-paid envelopes for mailing in deposits (CSR)
Nationwide Bank also offers CDs, IRAs, checking accounts and a savings accounts. The best CD yield currently available is 3.75% APY for 7 and 11 month terms. The minimum deposit is $500. Neither the savings account nor the checking accounts have interest rates worth mentioning.
Nationwide Bank was established in 1998 and is a member FDIC (Certificate # 34710). For those looking for a financially strong bank, this might be one for you. It has a 5 out of 5 star rating (superior) at Bankrate.com based on 9/30/07 data and a 5 out of 5 star rating (superior) at BauerFinancial based on 12/31/07 data.
Thanks to the reader who mentioned this account in the finding-the-best-deals post.
Rate and Account History:
Update 06/29/10: The yield has fallen from 1.25% to 1.20% APY
Update 03/02/10: The yield has fallen from 1.40% to 1.35% APY
Update 11/21/09: The yield has fallen from 1.60% to 1.50% APY.
Update 11/07/09: The yield has fallen from 1.70% to 1.60% APY.
Update 09/26/09: The yield has fallen from 1.80% to 1.70% APY
Update 08/10/09: The yield has fallen from 1.85% to 1.80% APY.
Update 07/01/09: The yield has fallen from 2.00% to 1.90% APY.
Update 06/01/09: The yield has fallen from 2.15% to 2.00% APY.
Update 04/25/09: The yield has fallen from 2.24% to 2.15% APY.
Update 11/15/08: The yield has fallen from 3.52% to 3.27% APY.
Update 7/17/08: The yield has increased to 3.50% APY. There's also a $25 new-account bonus. See post for details.
Update 5/20/08: The yield has fallen from 3.40% to 3.25% APY.