Intervest National Bank has a money market account that has offered competitive rates for a while. It lacks some of the features that other internet accounts provide such as an ACH bank-to-bank transfer service, but with competitive rates along with limited check writing, I thought it was worthy of a review.
The current rate as listed at the bank's rate table as of 4/27/09 is 2.10% APY for balances of $2,500 and above. This rate had been 2.15% before last Friday. The bank's money market account page has a good overview of the features. Additional details are in the disclosure. Some of the important features include:
- $1,000 minimum opening deposit
- $2,500 minimum average balance required to avoid a $12/month maintenance fee
- To earn the top rate, a $2,500 minimum balance is required
- Interest is compounded daily and credited to account monthly
- Limited check writing allowed (typical limit of 3 checks per month apply)
- ATM card provided, but they charge a fee for using non-Intervest Bank ATMs
Their online application must be printed and mailed along with copies of two forms of ID. In the application, you're allowed to list up to four POD beneficiaries.
Intervest also offers an interest checking account with some competitive rates. The rates range from 1.25% APY for a minimum balance of $2,500 to 2.25% APY for a minimum of $100K. The 1.25% may seem low, but remember that many other non-reward checking accounts have lower rates (Charles Schwab 1%, ETrade 0.50%).
I first reported on Intervest due to their high rate CDs. They still have competitive CD rates, but the big downside is a harsh early withdrawal penalty which equals half of the interest for the entire term of the CD (see disclosure).
To open an account you can also vist one of their branches in New York, New York and in Clearwater and South Pasadena, Florida.
Intervest National Bank has some fair ratings for safety and soundness: 3.5 stars (good) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 12/31/08 financial data. The bank has been FDIC insured since 1999 (FDIC Certificate # 35011).
Update 11/28/09: The MMA has new rate tiers: 1.40% APY $2.5K-$25K, 1.45% APY $25K-$50K, 1.55% $50K-$100K, 1.60% APY $100K+
Update 11/14/09: The MMA has new rate tiers: 1.50% APY $2.5K-$25K, 1.55% APY $25K-$50K, 1.60% $50K-$100K, 1.65% APY $100K+
Update 7/11/09: The MMA has new rate tiers: 1.65% APY $2.5K-$25K, 1.70% APY $25K-$50K, 1.75% $50K-$100K, 1.80% APY $100K+
Update 6/13/09: The MMA has new rate tiers: 1.75% APY $2.5K-$25K, 1.80% APY $25K-$50K, 1.85% $50K-$100K, 1.88% APY $100K+
Update 5/30/09: The MMA has new rate tiers: 1.80% APY $2.5K-$25K, 1.85% APY $25K-$50K, 1.87% $50K-$100K, 1.90% APY $100K+
Update 5/15/09: The rate has fallen to 1.90% APY.