I was weary of opening an account with Investors. There were poor reviews on this site and the online savings product was new to the bank. But so far, I have had no problems with the bank.
I previously kept my money at Ally which has a great online experience and short transfer times. But their deposit rates have become uncompetitive, so I shopped around for a new savings account. Investors eAccess checked all my required boxes:
1. There is no minimum and no fees
2. There are no fees for ACH withdrawals (some actually do this)
3. ACH withdrawals are not limited to an absurdly low amount per day. ($250,000 per transfer, $250,000 per month)
4. Able to direct deposit paychecks and set up direct withdrawal of bills
I did not encounter any problems opening the account like others indicated. It seems all banks are asking more detailed questions to conform with any money laundering laws. That is the new world we live in. Upon opening account, the transfer setting was se up for a maximum of $5,000 a day. I immediately felt buyer’s remorse and felt I was misled. I chatted with Customer Service and was told that the eAccess accounts have higher limits. My daily limit was changed to $250,000 by the next day. I also read in a previous post that the bank would not link to outside financial institutions and I would have to initiate everything from Investors. THIS IS NOT TRUE. I first set up a direct deposit to test if money would come through. The cash was deposited on the day expected with no problem and have never had a problem since. I then tested if I could withdraw money through a pull transaction initiated by another financial institution. I initiated a pull from an investment account to insure I would not be charged a late fee on a bill when the transfer would ultimately fail. My withdrawal funds were deposited into my investment account on the expected day and were withdrawn from Investors on the following day.
Throughout this month and a half process, I was still skeptical and looking at other banks. At the time of opening, Investors was 1 of 2 banks offering a savings account with 2.50% APY, but others have followed, and some have begun offering 2.51% and 2.52% APY. But the reviews of those banks were not great either and have low daily ACH withdrawal limits. What is the point of a savings account if you do not have immediate access to all your money in case you need it?
Areas of improvement for Investors eAccess:
1. My transfers in from my funding bank did take 2 days to clear compared to 1 day with Ally Bank. According to the transfer page, transferring money out is a 4 day process. The first day is the day you make a request. The second day, the money is withdrawn from the account, which is deposited to the outside account on the 4th day. That is 2 days with no access to the funds which I think is typical but not best in class. I am willing to make this trade off for the extra 0.30% yield. Investors Bank made a comment on another post that it is working on 1 day transfers with customers who quality with account history. Let's hope it completes this improvement.
2. I am interested in opening a second eAccess Money Market account to obtain an additional 6 withdrawals a month. However, I cannot find a link that allows me to do so and I do not see a log in option when opening an account like a new customer. You would think they would want to encourage additional ties with their customers.
Overall, the saving account seems to be good value. I do not like playing games with minimums, promotional rates, low withdrawal limits, or the worst, setting up new online banks to fool its current customers to keep their money in the lower yielding bank (I am looking at you Emigrant Bank) etc., and they do not use such tactics. I thought the manual request to increase the transfer limits was unnecessary, but hopefully, they fix that procedure. Since Investors is a new online bank, they will be on a short leash if their rates start to lag competitors because they have no track record. Their web interface can also be improved, but it is usable. Lets hope they stay in the top tier of rates offered.
From our friends at Investors I just learned, in an online chat session, that they DO NOT use ACH. Their slower, so-called "External Transfer" service is apparently something else . . .
Which in practice means that, from within your Investors eAccess Money Market account, you can set up links to other FIs (as "external accounts") . . . a process that uses the traditional two trial deposits for verification, just like ACH.
BUT, if you attempt to link to your Investors account from the outside -- from Chase, for example -- the two trial deposits Chase sends to your Investors account will be rejected. For better or worse, your Investors Money Market is impenetrable from the outside, by other FIs.
Investors Bank is not exactly a roach motel of money, but you ARE at the mercy of their longer delays and holds. I wonder why they bother giving you an ABA routing number along with your account number, since it's really of no practical use!
In comparison, United Bank credits my account with an interest-earning deposit the day of the requested transaction -- even before it's been debited from the funding account. I was planning to pair the two (both currently offering 2.5% APY). But I will not be able to initiate transactions on the United side. All control has been wrested by Investors' "sluggish" (read "float") impaired system.
Is investors not really ready for prime time on the internet super-highway? Or are they simply taking advantage of their customers? (Or both!) Given lack of external access, is "eAccess" actually a misleading misnomer? You decide!
Application process for savings account is more intrusive than more matured institutions. Approval process is opaque. Customer Service is lacking in information.
Marginally higher interest rate will not compensate for the aggravation.
|FDIC Certificate #||28892|
|Return on Assets - YTD||0.73%|
|Return on Equity - YTD||7.09%|
|Annual Interest Income||$256.3MM|
|Assets and Liabilities|
|Assets||Q1 2019vs Q1 2018||$26.57B$25.22B|
|Loans||Q1 2019vs Q1 2018||$21.51B$20.36B|
|Deposits||Q1 2019vs Q1 2018||$17.95B$16.80B|
|Equity Capital||Q1 2019vs Q1 2018||$2.67B$2.80B|
|Loan Loss Allowance||Q1 2019vs Q1 2018||$234.7MM$231.1MM|
|Unbacked Noncurrent Loans||Q1 2019vs Q1 2018||$117.7MM$136.5MM|
|Real Estate Owned||Q1 2019vs Q1 2018||$7.0MM$4.9MM|
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|APY||MIN||MAX||ACCOUNT NAME||VIEW DETAILS|
|2.30%||-||$2m||eAccess Money Market|
|APY||MIN||MAX||ACCOUNT NAME||VIEW DETAILS|
|2.15%||$500||-||6 Month No Penalty CD|
|2.05%||$500||-||10 Month CD|
Investors eAccess is an Internet only bank and does not have branch locations. Its headquarters is located at 101 JFK Parkway - Short Hills, NJ 07078