In early February, MutualOne Bank introduced a new nationally available Online Savings account, with an initial 1.61% APY on all balances up to $250k. As of yesterday, the APY was raised to 2.02% on all balances up to $1 million. According to the fine print on the Online Rates page, “Balances in excess of $1,000,000 will earn a lower interest rate” (currently 0.25% APY).
In the past six months, there have been three rate increases for the Online Savings account, adding a total of 41 bps.
According to MutualOne Bank’s Consumer Disclosure page,
There is no minimum daily balance requirement.
Preauthorized transfers from your Online Savings Account are limited to 6 each month, whether to other accounts you maintain with us or to third parties. ($10 fee per transaction over the limit of 6.)
All transactions for this account are required to be conducted electronically, i.e. online, ACH, bill pay, ATM, and mobile.
Online Banking and eStatements are required within the first 30 days of account opening.
In a February blog post, I discussed MutualOne’s online account management capabilities. According to CSR, the following restrictions are still in effect.
- Can you link an external account? Yes. Once your account is established, you can link external accounts through the Bank’s online banking platform. There is no limit to the number of external accounts you can link.
- Are there fees for in/out transfers? No, they are fee-free.
- What are the dollar limits on transfers? $25k per transaction, per day, and a $100k aggregate total per 30 days.
- Any restrictions for ACH transfers that are initiated from another bank? None.
SIF Deposit Insurance
A large balance in a MutualOne Bank Online Savings is protected through the Bank’s Share Insurance Fund (SIF) membership. The SIF is a private, industry-sponsored insurance fund that insures all deposits above Federal Deposit Insurance Corporation (FDIC) limits at Massachusetts-chartered co-operative banks.
As stated on MutualOne Bank’s Personal Services Savings & Retirement page,
Each depositor is insured by the Federal Deposit Insurance Corporation (FDIC) to at least $250,000. All deposits over and above this amount are covered by the Share Insurance Fund (SIF), established by the legislature in 1934 to protect deposits in Massachusetts-chartered co-operative banks. There are no maximum account limitations or amount limitations.
Headquartered in Framingham (20 miles outside Boston), MutualOne Bank has been offering its services and product line to all U.S. citizens and resident aliens through its online platform for more than two years. The Bank’s previous market area was limited to Massachusetts.
Opening an Online Statement account at MutualOne Bank must be done online.
MutualOne Bank’s online application states that,
Credit or debit card or U.S. checking or savings account to fund your new account(s).
Current MutualOne Bank customers can open new accounts directly through the Bank’s Online Banking platform.
MutualOne Bank has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 3.20% (excellent) based on June 30, 2018 data. In the past year, MutualOne Bank has increased its total non-brokered deposits by $35.36 million, an excellent annual growth rate of 6.36%. Please refer to our financial overview of MutualOne Bank (FDIC Certificate # 26395) for more details.
MutualOne Bank was originally founded in 1889 as the South Framingham Co-operative Bank. As the Bank expanded its market area, it was renamed the Framingham Co-operative Bank in 1913. In 2012, a merger with the long established Natick Federal Savings Bank (1886) resulted in today’s MutualOne Bank. Currently the 50th largest bank in Massachusetts, MutualOne Bank has assets in excess of $827 million and more than 22,800 customer accounts.
How the Online Savings Compares
When compared to the 205 Savings Accounts tracked by DepositAccounts.com that are available nationwide, MutualOne Bank’s Online Statement Savings APY currently ranks fourth, regardless of minimum deposit requirement.
|Interest Rate||Account Name||Credit Union/Bank|
|2.25% APY||Ascent Money Market Savings||Customers Bank|
|2.10% APY||High Yield Online Savings||Vio Bank|
|2.05% APY||eOne Savings||Salem Five Direct|
|2.02% APY||Online Savings (no min)||MutualOne Bank|
The above rates are accurate as of 9/5/2018.
To look for the best Savings Account rates, both nationwide and state specific, please refer to our Savings Account Rates Table page.