It’s been about 18 months since Republic Bank introduced its new internet division, MemoryBank. The EarnMore Checking Account was MemoryBank's first and only product. MemoryBank doubled the size of its product line this week, when it unveiled its Online Money Market Account (OMMA). The OMMA earns 1.85% APY on balances between $0.01 and $1 million; balances over $1 million earn 0.01% APY.
|1.85*%||-||$1m||MemoryBank||Online Money Market Account|
|OTHER TIERS: 0.01% → $1mm+|
A few facts about the OMMA:
- $50 minimum opening deposit
- There is no checking writing ability
- No monthly maintenance fees, although there is a $3 monthly fee for paper statements
- $10 Excess Transaction Fee for each transaction beyond the six allowed per statement cycle.
According to the Online Money Market Account Truth-in-Savings disclosure,
MemoryBank deposits are not separately insured by the FDIC beyond the
applicable FDIC insurance coverage available at Republic Bank & Trust Company.
Not surprisingly, there’s no detailed information on MemoryBank’s website concerning ACH transfers. In a Live Chat, I found out that:
- For the first 30 days following account opening, there is a default limit of $2k per day and per transaction, and $8k per rolling 30 days, when initiating a transfer through MemoryBank’s online banking.
- After the first 30 days, a limit increase can be requested. There are two standardized limit levels: Tier 2 – $5k per transaction and per day, and $10k per rolling 30 days, and
Tier 3 – $10k per transaction and per day, and $20k per rolling 30 days.
- There is no dollar limit on transfers initiated through another bank.
- Up to five accounts may be linked at one time.
- ACH transfers typically take 2-3 days.
- ACH transfers are free, with the exception of Next Day transfers ($3 fee).
- No holds are placed on incoming transfers, except for the initial account funding, which may take up to 5-7 business days.
When it was launched, the EarnMore Account offered a promotional first-year 1.50% APY on qualifying balances up to $250k. The promotional rate became the ongoing rate in November 2017 and in February, the rate was raised to 1.60% APY. While not an outstanding rate, it was high enough to be included in DA’s bi-weekly Liquid Rates Summary. The 1.60% APY is still in effect, but MemoryBank removed all the qualification requirements a few months ago, making the EarnMore Account a standard checking account.
|1.60*%||-||$250k||MemoryBank||EarnMore Checking Account|
|OTHER TIERS: 0.05% → $250k+|
MemoryBank seems to be following a path similar to that of other internet banks. For example, the initial product launched in 2007 by Salem Five Direct was its eOne Checking, with competitive tiered rates between 5.00% and 5.30% APY. Salem Five Direct didn’t introduce its eOne Savings until 2010, by which time, the eOne Checking APY had fallen to 0.65%. The eOne Savings became the favored child, as the eOne Checking rate continued to drop, finally settling at 0.25% APY in June 2012.
IncredibleBank has had a comparable history: a high-yield checking account (Incredible Checking, 2.02% APY, up to $250k) introduced in 2009 and a steady rate decline to the point where the checking account no longer earns any interest. Meanwhile, the Incredible Savings has remained competitive, adding 67 bps in the past year.
Every time a new internet bank offers a competitive rate on a liquid account, the question of whether it’s worth chasing yet another deal without a rate guarantee always pops up. It will be interesting to see what happens to MemoryBank’s EarnMore rate with the introduction of the Online Money Market account. If I were a betting man, I might wager the checking rate will become less competitive: very few institutions seem to maintain high rates on non-reward checking accounts.
Headquartered in Louisville, Kentucky, MemoryBank currently offers its product line to permanent residents of the U.S. and its territories, 18 years or older, who have a valid Social Security Number or Individual Taxpayer Identification Number (ITIN).
Applying for an Online Money Market Account must be done online, using either a computer or a mobile device.
Funding a new account can be done with a credit card (maximum $500), debit card, or a U.S. checking or savings account.
As an internet division of Republic Bank, MemoryBank operates under Republic Bank’s FDIC Certificate and shares its financial history.
MemoryBank/Republic Bank has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 2.54% (excellent) based on March 31, 2018 data. In the past year, the Bank has increased its total non-brokered deposits by $319.45 million, resulting in an excellent growth rate of 10.44%. Please refer to our financial overview of Memory Bank/Republic Bank (FDIC Certificate # 23627) for more details.
Currently the largest bank in Kentucky with assets of $5.07 billion, Republic Bank’s roots lie in the 1977 acquisition of an “80+ year old Shelby County, Kentucky bank, renamed Republic Bank of Shelby County – Shelbyville.” The Republic Bank & Trust Company was founded in 1982, and began 35-year journey of expansion and acquisitions. While Republic Bank’s primary market area is Kentucky, stretching from Lexington to Louisville, the Bank has established a presence in the Cincinnati, Ohio, southeast Indiana, Tampa-St. Pete metro area in Florida, and Nashville, Tennessee.
How the Online Money Market Account Compares
When compared to the Money Market accounts tracked by DepositAccounts.com that are available nationwide and not limited by small balance caps, MemoryBank’s Online Money Market Account APY currently ranks third.
|Interest Rate||Account Name||Credit Union/Bank|
|2.01% APY||eMoney Market (no min/no max)||Virtual Bank|
|1.90% APY||Money Market (no min/no max)||Sallie Mae Bank|
|1.85% APY||Online Money Market (no min/$1m max)||MemoryBank|
The above rates are accurate as of 7/19/2018.
Searching for the best MMA rates, either nationwide or in your state? Please refer to our Money Market Accounts rates table page.