Deal Summary: Money Market Savings Account, 1.30% APY on all balances, $250 minimum opening deposit requirement.
ableBanking increased the rate today of its Money Market Savings account by 30 bps to 1.30% APY. This is currently the top rate that’s available from an internet savings account. ableBanking is one of only three internet banks that offer this rate with no minimum balance requirements.
ableBanking’s 1.30% APY applies to all balances of the Money Market Savings. There is no minimum or maximum balance. Also, there is no monthly maintenance fee. At account opening, there is a $250 minimum initial deposit and a maximum initial deposit of $250,000.
Another important thing to mention is that there is no rate guarantee period. The rate is subject to change without notice.
ableBanking was launched by Northeast Bank in 2012. Since that time, the Money Market Savings APY has ranged from 0.80% to 1.02%. Before this rate change, the APY had been at 1.00% since November 2014.
Thanks to DA reader, thowellIII, for posting on this rate change in the DA Forum.
Money Market Savings Account Features
One change that ableBanking has made to the Money Market Savings account is that they no longer allow checks to be written. For the first year, they offered limited check writing. The account disclosure now says that “paper checks are not permitted on accounts opened on or after 04/01/2013. Use of paper checks ordered from another source will be returned.” Thus, this account is now essentially a savings account instead of a money market account. In my opinion, the primary feature that distinguishes a money market account from a savings account is limited check writing privileges.
ableBanking’s website does have a decent FAQ section and they do have a few important disclosure documents in their documents section. One document they lack is a Truth in Savings disclosure. When I asked the CSR about this, he said “this is usually a document that gets produced when opening an account.” When I asked about wanting to review this document before starting the application, he did say that they were going to look into having access to one on their site.
One thing that I couldn’t find in the documentation was the issue of beneficiaries and trust accounts. Here’s what I was told by the bank CSR via the online chat service. ableBanking allows you to designate up to two beneficiaries (payable on death) on an account. For each beneficiary they require social security number, date of birth, address and relationship to you. Phone number of the beneficiary is optional. ableBanking currently does not offer trust accounts.
ableBanking does have an online bank-to-bank transfer service (i.e. ACH transfer service), but there are important limitations. Below is a summary of their ACH transfer service based on the account disclosure and my online chat with the CSR:
- Incoming/Outgoing ACH transfers are free
- Maximum outgoing transfer is $25,000 per day (when initiated from ableBanking)
- No maximum amount for incoming transfers
- No maximum outgoing transfer amount when initiated from another bank
- Typical limit of 6 outgoing transfers per month (per Federal regulation)
- Allows only one link to an external account
- Must re-establish link after initial account funding
- Must wait 60 days after account funding to change link to a different account
ableBanking is also offering a competitive 1-Year CD (1.40% APY) and 6-month CD (1.05% APY). Its other CD rates are much less competitive. A $1K minimum deposit opens this CD and there is a maximum balance cap of $240K. According to the CSR, the early withdrawal penalty for CDs with terms of less than 3 years is 90 days simple interest. They do not allow partial early withdrawals. For any of the principal to be withdrawn early, the CD must be closed.
|1.40%||$1k||$240k||ableBanking||1 Year CD|
|1.05%||$1k||$240k||ableBanking||6 Month CD|
ableBanking operates strictly as an internet bank, offering services to all U.S. citizens. To open an account, you need a Social Security Number for everyone whose name is on the account, and the routing and account information for the institution that will be funding the new ableBanking account. The account is considered open only after a signed signature card is returned, along with a copy of a valid Driver's License or valid ID card.
ableBanking is the internet division of Northeast Bank, a Maine community bank that was founded in 1872. Since opening its virtual "doors" in July 2012, ableBanking has passed on its savings from having reduced overhead, by donating $25 to each new customer's favorite charity.
Northeast Bank/ableBanking (FDIC Certificate # 19690) has an overall health rating of A at DepositAccounts.com, with a Texas Ratio of 10.82% (excellent) as of March 31, 2017. ableBanking has increased its total non-brokered deposits in the past year by $97.91 Million, an excellent 12.75% growth rate. Please refer to our financial overview of Northeast Bank/ableBanking for more details.
How the Money Market Savings Account Compares
When compared to the 253 Personal Savings accounts tracked by DepositAccounts.com that are available nationwide with no minimum balance requirements, ableBanking’s Money Market Savings Account APY currently shares the top spot with DollarSavingsDirect’s Dollar Savings Account and BankPurely’s SavingsPurely.
The above rates are accurate as of 5/26/2017.