ableBanking’s Money Market Savings Is New Rate Leader

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Deal Summary: Money Market Savings Account, 1.70% APY on all balances, $250 minimum opening deposit requirement. 12-Month CD, 2.00% APY, $1k minimum deposit.

Availability: Nationwide (internet bank)

ableBanking increased the rate today of its Money Market Savings account by 40 bps to 1.70% APY. This is currently the top rate that’s available from an internet savings or money market account.

APYMINMAXINSTITUTIONPRODUCTDETAILS
1.70%$250-ableBankingMoney Market Savings
Rates as of May 22, 2018.

ableBanking’s 1.70% 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. Between that time and May of 2017, the Money Market Savings APY ranged from 0.80% to 1.02%. In May the APY increased from 1.00% to 1.30% APY.

Money Market Savings Account Features

As I mentioned in May, 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 in May, 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. As of January 13, I don’t see any change in their document section.

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 in May:

  • 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

1-Year CD Joins the 2% Club

ableBanking also increased its 1-year CD rate. It was only a month ago when the CD joined the 1.75% club. Today, it joins the 2% club with a 2.00% APY. The Bank’s other CD rates are much less competitive.

APYMINMAXINSTITUTIONPRODUCTDETAILS
1.75%$500$240kableBanking1 Year CD
Rates as of May 22, 2018.

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.

Funding a CD can only be done through ACH transfer from an existing bank account. ableBanking will send maturing funds back to the original funding account, or will issue a check that will be mailed to the address on file.

Availability and Application

Headquartered in Lewiston, Maine, ableBanking is an online division of Northeast Bank and, according to the online application, offers its product line to “United States Residents,” 18 years or older. As ableBanking requires a Social Security number for everyone named on the account, I think it’s safe to assume U.S. citizens and resident aliens are included in “United States Residents.”

ableBanking requires a copy of your driver’s license or valid government-issued ID (passport, military ID, etc.) to open an account.

We will not consider your account opened until we receive this information from you. Once
your account is opened, you will receive additional details on your account from us in the mail.

ableBanking's application requires an existing bank account and routing number to transfer money from.

According to the CSR, two beneficiaries can be added on the initial application, and “a total of four can be added after the account is opened by written request.” Each beneficiary added requires a Social Security number, date of birth, address, and relationship to the account owner.

ableBanking currently does not offer trust accounts.

Bank Overview

As an online division of Northeast Bank, ableBanking operates under Northeast Bank’s FDIC Certificate and shares Northeast Bank's financial history. 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 has an overall health grade of “A” at DepositAccounts.com, with a Texas Ratio of 10.92% (excellent) as of September 30, 2017. In the past year, the Bank has increased its total non-brokered deposits by $51.35 Million, an excellent 6.2% growth rate. Please refer to our financial overview of Northeast Bank/ableBanking (FDIC Certificate # 19690) for more details.

Northeast Bank was originally established in 1872 as the Bethel Savings Bank. (Bethel, Maine, was known as a fashionable summer resort between the Civil War and World War I.) The Bank’s name remained the same for almost 125 years and was changed to Northeast Bank following the acquisition of Brunswick Federal Savings in 1996. Northeast Bank is currently the ninth largest bank in Maine, with assets in excess of $1 billion.

How the Money Market Savings Account and 1-Year CD Compare

When compared to the Personal Savings accounts and Money Market accounts tracked by DepositAccounts.com that are available nationwide, ableBanking’s Money Market Savings Account ranks first regardless of minimum balance.

When compared to the 214 similar length of term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationally, ableBanking’s 12-month CD ranks second, tied with 12-month CDs from two other internet banks.

The above rates are accurate as of 1/13/2018.

To review the top Savings and Money Market rates, both nationwide and state specific, please refer to our Savings Account rates table and Money Market Account rates table. Make sure to set the deposit amount to larger values to see all of the top rates.

To review the most competitive CD rates, both nationwide and state specific, please refer to our CD rates table.

Related Pages: Portland savings accounts, savings accounts, money market accounts, 1-year CD rates, nationwide deals, Internet banks

Comments
Sloppy Steve
Sloppy Steve   |     |   Comment #1
Ally is almost 1/2 % behind the leaders now with savings .... Not competitive!
buckeye61
buckeye61   |     |   Comment #4
Agreed! Hopefully, they will not continue to rely solely on the "No penalty" CD as a competitive account and adjust their Savings and Money Market accounts to something closer to Synchrony and Marcus....if not Able Bank.
Att
Att   |     |   Comment #5
I like the Ally 11 month no penalty. Just closed one and will use the funds to open a Connexs 5 year 3%. Still have few 11 month CDs with Ally at 1.75% that are liquid.
rzelman
rzelman   |     |   Comment #2
It was somewhat of an ordeal to set up the account and as of last week I was ready to move on as their once leading rate for the MMA stagnated but this is a game changer. I am back in and will max out my account again. Important however to link an external bank that you rely upon for liquidity.
jpgr
jpgr   |     |   Comment #13
Has anyone verified no limits on deposits/withdrawals when initiated by an external bank?
jpgr
jpgr   |     |   Comment #14
seems this was answered above
Att
Att   |     |   Comment #3
Hope Dollar increases their savings rate.
Saver
Saver   |     |   Comment #6
This is so awesome! I remember 2-3 years ago being excited about anything over 1%.
klink
klink   |     |   Comment #7
Let the rate wars begin.
gregk
gregk   |     |   Comment #8
It's about the inflation rate, right? - and after taxes you end up a net loser in terms of purchasing power. Not saying1.70% isn't preferable to anything lower, but you're not really making money, - only cutting your losses a bit. "Awesome" isn't the word I myself would use.
Bogie
Bogie   |     |   Comment #9
No, it's not all about the inflation rate. What you say may have some merit in a free market but not when the Federal Reserve manipulates the numbers and holds key interest rates artificially low for an extremely long period of time.

Just like Social Security, interest on savings accounts was never meant to live on alone.

About the only time interest rates on saving Accts. will beat inflation is during an extremely low or in a deflationary period following a period of high inflation and depositors are holding high interest rate long term CDs at the time.

.
Robb
Robb   |     |   Comment #12
We all know the govt. massages the data so they can minimize paying more on the COLA front. Any consumer knows healthcare, real estate, rents have been skyrocketing due in part to the Fed's suppression of interest rates. Other forms of inflation include contraction of food sizes, etc. The Fed funds rate is still far from being normalized although they've talked about normalizing rates for a couple of years and remain behind the curve.
cycles
cycles   |     |   Comment #10
ableBanking TRUTH IN SAVINGS DISCLOSURE - MONEY MARKET pdf form
https://tinyurl.com/y9xa9zyo
me1004
me1004   |     |   Comment #11
Ken, I'm not clear what you mean when you say "ableBanking currently does not offer trust accounts." Are you saying no POD or ITF accounts, in addition to any other trust accounts?
SW85
SW85   |     |   Comment #15
Economics novice here; just starting to learn the ropes. I'm hoping to put away my nest egg and not touch it for a while. I was planning to open the Money Market Savings Account but wondering now whether I'd be wiser to put it all in the 1-Year CD. Feedback welcomed. Thanks in advance.
Q&E
Q&E   |     |   Comment #16
Hard or soft credit pull--anyone know?
Paul Reid
Paul Reid   |     |   Comment #17
Good info as I'm considering opening up a MM account and CD because of the higher rates. You are correct check capability is a nice feature on a MM account
zjts
zjts   |     |   Comment #18
I just finished my online application . There was no where to indicate which charity I'd like the $25 to go to. Does that come later after , for example, after funding or after I get an account #?
pattyb53
pattyb53   |     |   Comment #19
I am going with ableBanking 1.70% liquid money.

I started my application 1/25, quick & easy. On 1/27 the small deposits were verified. This morning 1/29 I completed everything. Upon talking to a Rep I was able to log into acct even though the opening $250 has not been taking from my home acct.
I have also added ableBanking to my Alliant CU list of ACH money movements

All & all with such knowledgeable agents to work with I think ableBanking 1.70% savings is a great addition.
Charlie
Charlie   |     |   Comment #20
Their website is pretty bad. Telephone contact is bad as well. Constant busy signal.
RJM
RJM   |     |   Comment #21
Looking for another online bank. This one sounded ok until I found out they don't allow check writing.

But, still looking for a high rate savings. Higher than the current 1.4% I am currently getting anyway.

Was also planning on opening another 2% CD at ally but they require $25k now and I want one for $15k.

Any other downsides for Able other than no check writing?
ableBanking's 1-Year CD Joins 1.75% APY Club
Deal Summary: 1-year CD, 1.75% APY, $1k minimum deposit, $240k maximum deposit

Availability: Nationwide (internet bank)

In October, ableBanking (internet division of Northeast Bank) became a player in the nationally available 1-year CD rate race, by adding 30 bps to its 1-year CD (1.70% APY). Two months later, ableBanking has added an additional 5 bps to the 1-year CD, placing it at the top of the rate pile. The 1-year CD can be opened with a $1k minimum deposit; there is a balance cap of $240k.

...
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ableBanking Hikes 1-Year CD Rate
Deal Summary: 1-year CD, 1.70% APY, $1k minimum deposit, $240k maximum deposit.

Availability: Nationwide (internet bank)

ableBanking (internet division of Northeast Bank) is the latest bank to become a player in the nationally available 1-year CD rate race, by adding 30 bps to its 1-year CD (1.70% APY). The minimum deposit is $1k, with a balance cap of $240k.

The 1-year CD was part of the product line when ableBanking opened its virtual doors in 2012. Four months after the 1-year CD debuted, the...

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ableBanking Raises Money Market Savings Account Rate

Deal Summary: Money Market Savings Account, 1.30% APY on all balances, $250 minimum opening deposit requirement.

Availability: Nationwide (internet bank)

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...

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ableBanking Raises Rate on Personal Money Market and 1-year CD

Internet bank ableBanking made its debut this week on DepositAccounts.com's "Best Bank Account Summary," with their Personal Money Market Account (PMMA) at 1.02% APY. After remaining static for several months, the interest rate on this PMMA was increased yesterday by 22 basis points. A $250 minimum deposit is required to open an account.

According to ableBanking's Disclosure Page, the following transaction limitations apply:

ableBanking is also offering a 1-Year CD (1.10% APY). A $1K minimum deposit opens this CD and there is a maximum balance cap...

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Competitive 1-Year CD Rate at the New Internet Bank ableBanking

Earlier this month the new internet bank ableBanking increased some of its CD rates, and there is now one CD that's especially competitive. It's the 12-month CD which has a 1.12% APY (as of 11/16/2012). Minimum deposit is $1,000.

I first reviewed ableBanking in July. It's the internet division of Northeast Bank, a Maine community bank. In addition to CDs, ableBanking also offers a personal money market account. As I described in my July review, ableBanking is trying to differentiate itself from other internet banks with its charity connection. The bank...

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