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.
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.
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.
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.