ADB Bank has a competitive money market account called Direct Wealth Money Market. The rate as of 2/24/09 is 3.00% APY on all balances. Some of the features include:
- No minimum balance requirements
- No monthly service charge
- Free first order of checks
- Free online bill pay
- Limited to 6 third-party withdrawals per month, of which 3 may be by check (as required by federal regulation)
The bank's ACH transfer system is pretty weak. Before you can initiate an ACH transfer to or from another bank, they require you to mail or fax in an electronic funds transfer (EFT) authorization form. Then you have to verify the trial deposits. Once the link to the other bank account has been set up, you then have to email instructions for a transfer. They will then call you to confirm the transfer. On the plus side, they don't block ACH debits or deposits from another bank. So you would probably be better off intiating an ACH transfer from another bank.
Regarding a hard credit inquiry, I was told they only perform a ChexSystem verification in the application process.
The bank also offers CDs that are available to people in any state. Like the money market account, the rates recently went down, but they are still fairly competitive. The rates include a 2.35% APY for 3 months, 2.50% APY for 6 months and 2.65% APY for 12 months. Minimum deposit is $5,000. These rates are listed at the bank's Direct Certificate of Deposit page as of 2/24/09. I was told the rate doesn't lock until they receive the signed documents and check.
ADB is a small one-office bank based in Cedar City, Utah. Its ratings for saftey and soundness are fair: 3 stars (performing) at Bankrate.com and 4 stars (excellent) at BauerFinancial. Both ratings are based on 9/30/08 financial data. The bank has been FDIC insured since 2005 (FDIC Certificate # 57962).
Thanks to the readers who mentioned this money market account in the comments.
Other high yield money market and savings accounts
Refer to my weekly rate summary for other internet money market and savings accounts that are available nationwide.
10/28/09: 1.50% APY
08/29/09: 1.60% APY
07/28/09: 1.80% APY
06/19/09: 2.05% APY
05/12/09: 2.10% APY
04/07/09: 2.25% APY
03/20/09: 2.50% APY
02/24/09: 3.00% APY