Less than three months ago, earn.bank made its debut in the internet banking world, offering a Money Market Account (MMA) and two CDs. The MMA offered an initial (and respectable) 2.02% APY on all balances. Within one month, the rate jumped to 2.31% APY, securing a place as the top-rated nationally available money market account. As of today, the MMA now earns 2.41% APY on all balances and is still the rate leader.
While the earn.bank brand is new to most of us, California-based Silvergate Bank had been developing earn.bank for about two years before it was launched. This independently operating online division of Silvergate Bank is the organic outgrowth of the Bank’s online banking platform.
Funding and Accessing the Money Market Account
The MMA requires a minimum $100 opening deposit. The initial deposit can be by credit card ($500 maximum), or through an external checking account or savings account. Once the MMA is established, deposits can be made through checks (including mobile deposits limited to $2.5k per each deposit), ACH and wire transfers, and online transfers. Unlimited external bank accounts can be linked, and transactions to/from those accounts can be done via earn.bank’s online banking platform.
There is no check writing ability, ATM/debit card, or Bill Pay services with earn.bank’s MMA.
Withdrawals from this account can be completed by transfers to linked external accounts
in online banking, or by initiating a request by sending an email to [email protected]
While there is a $1k per day limit on outgoing ACH transfers initiated through earn.bank’s online banking platform to unlinked accounts, outgoing ACH transfers to the original funding and/or linked accounts have no dollar limit.
The following restriction applies to newly opened MMAs:
Requests to withdraw funds within the first 90 days will be completed
by returning funds by the method in which they were received.
There May Be Fees
Multiple payable-on-death (POD) beneficiaries are allowed and Social Security numbers are NOT required for beneficiaries. While there is no set limit on the number of beneficiaries permitted, the online application can only accommodate up to five beneficiaries being named.
In-trust-for (ITF) accounts are also allowed, with the “Deposit Account Certification of Trust” form available as a download.
Headquartered in La Jolla, in Southern California, earn.bank is an internet bank with no brick-and-mortar branches.
To open any type of account at earn.bank, you must be a US citizen or full-time resident with a valid Social Security number. A link to the online application can be found on Money Market account page.
As an online division of Silvergate Bank, earn.bank operates under Silvergate Bank’s FDIC Certificate and shares its financial history. “Deposits are insured by the FDIC up to the maximum allowed by law, with earn.bank and Silvergate Bank treated as the same entity for the purposes of calculating FDIC insurance limits on deposits.”
earn.bank/Silvergate Bank has an overall health rating of "A" at DepositAccounts.com, with a Texas Ratio of 4.51% (excellent), as of September 30, 2018 data. In the past year, the Bank has increased its total non-brokered deposits by $977.66 million, an excellent annual growth rate of 99.22%. Please refer to our financial overview of earn.bank/Silvergate Bank (FDIC Certificate # 27330) for more details.
Headquartered in San Diego, Silvergate Bank opened in 1988, specializing in meeting the needs of small businesses. A subsidiary of Silvergate Capital Corporation, Silvergate Bank’s charter was changed from an industrial bank to a commercial bank in 2009, allowing the Bank to offer demand deposit accounts. Silvergate Bank is known as a “crypto-friendly” bank, and according to a recent CCN.com article,
California-based financial institution Silvergate Capital, the parent company of Silvergate Bank, is preparing to go public to raise $50 million in an initial public offering (IPO), according to documents filed with the US Securities and Exchange Commission (SEC).
As the filing states, Silvergate’s focus has moved away from that of a traditional lender to providing non-interest bearing deposits for digital currency businesses. The financial institution estimates the market for cryptocurrency banking services to be between $30 billion and $40 billion.
How the Money Market Account Compares
When compared to 185 Money Market accounts tracked by DepositAccounts.com, which are available nationwide and have a minimum deposit requirement of $5k or less, earn.bank’s Money Market Account APY currently ranks first.
The above rates are accurate as of 1/18/2018.
Looking for the best MMA rates, either nationwide or in your state? Please refer to our Money Market Accounts rates table page.