Merchants Bank of Indiana Money Market Account Is Near Rate Leader

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Deal Summary: Money Market Account, 3.05% APY on all balances, $50 minimum opening deposit.

Availability: Nationwide through online application.

Last week, Merchants Bank of Indiana (MBoI) added 77 bps to its nationally available Money Market Account (MMA). The new 3.05% APY applies to all balances and according to CSR, “all existing accounts had their rates updated” as of end of business on September 23, 2022. While there is no minimum balance requirement to earn the stated APY, a minimum $50 deposit is required to open a new MMA.

APYMINMAXINSTITUTIONPRODUCTDETAILS
3.05%--Merchants Bank of IndianaMoney Market Account
Rates as of October 3, 2022.

Added to MBoI’s product line in early 2019, the MMA’s initial rate was 1.75% APY, which remained in effect until March 2020. Following three rate drops, the APY bottomed out in December 2020 at 0.75%, where it remained until May 2022. (During the 17 months the 0.75% APY was in effect, it was actually a competitive rate: the average online savings account at that time had a range of 0.45% to 0.51% APY.) In the past five months, there have been four rate increases adding a total of 230 bps.

The Truth-in-Savings disclosure for the MMA continues to be part of the online application. The following information is from a conversation with CSR.

  • Interest compounds daily and credited monthly on the last day of the monthly statement cycle.
  • There is no monthly service fee or minimum monthly balance requirement.
  • Check writing is available, subject to the six per month withdrawal limit.
  • If you exceed the standard six transactions per month, there is a $2 fee for each transaction. According to CSR, MBoI has chosen to enforce the six-transaction rule, even though the Federal Reserve paused Reg D.
  • ATM/debit card, online bill-pay, and online banking transfers are not available.

MBoI No ACH Zone

About 19 months ago, MBoI stopped offering external ACH transfers, which prompted a fairly lengthy Forum post. CSR confirmed that the “No ACH Zone” is still in effect, with initial funding that can only be done by wire transfer. There is a $15 wire fee, but CSR stated MBoI will reimburse that initial funding wire fee. CSR assured me that subsequent incoming/outgoing ACHs “initiated by an external financial institution will be honored. The only limits on the ACHs are those set by the initiating institution.”

DA reader, ET, described an “Easy and Smooth” account opening process in a July 2022 review post.

  • No credit check, only ChexSystems for opening a money market account
  • $15 incoming wire fee is reimbursed the next business day
  • Personal phone call from a CSR to confirm information in online application
  • No issue with a joint account initiated online

Thanks to DA reader, rockies, who first posted on this news in this Forum post.

Flex Index CDs

DA reader, rockies, also made mention of the MBoI Flex Index CDs in a Forum post last week.

This is a variable rate CD tied to the Prime Rate. Different terms may be chosen. The APY still lags leading brokered CD and Treasury rates, but should continue to increase as the Prime Rate increases.

There are three Flex Index CDs, all of which currently earn 3.56% APY and require a $1k minimum opening deposit.

APYMINMAXINSTITUTIONPRODUCTDETAILS
3.56%$1k-Merchants Bank of Indiana12 Month Flex Index CD
3.56%$1k-Merchants Bank of Indiana24 Month Flex Index CD
3.56%$1k-Merchants Bank of Indiana36 Month Flex Index CD
Rates as of October 3, 2022.

The following is from the disclosure that is part of the Flex Index CD online application.

Determination of Rate: The interest rate of your account is based on an index. Your index is: Prime Rate minus a margin of 2.75%, with a floor of 0%. Your interest rate on your account may change at any time based on changes in the index.

Interest Compounding and Crediting: Interest will compound daily. Interest will be credited monthly. If the account is closed before interest is credited, you may receive the accrued interest.

Withdrawals of Interest: Interest credited during the term may be withdrawn only on crediting dates.

Renewal Policy: This account will be automatically renewed at maturity. You have a grace period of then (10) calendar days after the maturity date to withdraw the funds without being charged a penalty.

The Early Withdrawal Penalty (EWP) for the 12-month Flex Index CD is 90 days interest on the amount withdrawn and 180 days interest on the amount withdrawn for the 24-month and 36-month Flex Index CDs. An EWP is not necessarily guaranteed:

Early Withdrawal Penalty: If we consent to a request for a withdrawal that is otherwise not permitted, you may have to pay a penalty.

Availability

Headquartered in Carmel, Indiana, Merchants Bank of Indiana has been offering its Money Market Account to all U.S. citizens and resident aliens (18-years or older with a valid Social Security number) for nearly two years.

In a November 2020 blog post, I stated that I was “cautious about labeling accounts ‘nationally available’ when offered by a non-internet bank. As we have seen in the past, banks sometimes change their position on account availability if the demand is too great.” It seems my caution about MBoI was unfounded.

Opening a Money Market Account or a Flex Index CD can be done online, or at any of six full-service Indiana branches located in Carmel (2), Indianapolis, Lynn (2), and Richmond.

CSR stated that the processing of applications may be slow, as there is only one person who reviews applications. This person will call the applicant to confirm that he/she is a real person and eligible to open an account. Instructions for wiring the opening deposit will then be emailed to the applicant.

Bank Overview

Merchants Bank of Indiana has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 0.33% based on June 30, 2022 data. MBoI has an excellent capitalization level (11.18%), the result of holding $10.82 billion in assets, with $1.21 billion in equity. Please refer to our financial overview of Merchants Bank of Indiana (FDIC Certificate # 8056) for more details.

Merchants Bank of Indiana was established in 1923 and was originally known as the Greensfork Township State Bank. In January 2009, Symphony Bank (Indianapolis) was acquired, with the Merchants Bank of Indiana rebrand occurring shortly thereafter. MBoI is a subsidiary of Merchants Bancorp, which has $11.1 billion in assets and $8.3 billion in deposits as of June 30, 2022. Other Merchants Bancorp direct and indirect subsidiaries include Merchants Capital Corp., Farmers-Merchants Bank of Illinois, Merchants Capital Servicing, LLC, and Merchants Mortgage, a division of Merchants Bank of Indiana. Currently the third largest bank headquartered in Indiana, Merchants Bank of Indiana has assets in excess of $10.8 billion and nearly 16,000 customer accounts.

How the Money Market Account Compares

When compared to nationally available Money Market Accounts and Savings Accounts tracked by DepositAccounts.com, that do not require large balances or direct deposit and do not have small balance caps, the Merchants Bank of Indiana Money Market Account APY currently ranks second.

APYAccount NameCredit Union/Bank
3.25%Helium Savings Promo ($2.5k min/no max)Elements Financial
3.05%Money Market Savings (no min/no max)Merchants Bank of Indiana
3.00%Dollar Savings Account (no min/no max)DollarSavingsDirect
2.75%Bask Interest Savings Account (no min/no max)Bask Bank
2.75%Money Market Account via SaveBetter ($1 min/no max)mph.bank

The above information and rates are accurate as of 9/27/2022.

To look for the best rates on liquid bank accounts, both nationwide and state specific, please refer to our Money Market Accounts Table and Savings Accounts Table.

Related Pages: Indianapolis money market accounts, money market accounts, 1-year CD rates, 5-year CD rates, nationwide deals

Comments
RichReg
  |     |   Comment #1
Still not enough to overlook all 'dem 'Hoops'..
fdic
  |     |   Comment #2
yes, they make you dance to get that rate. but not that bad
Buckeyes
  |     |   Comment #3
they constantly for no reason deny my application. Been told last week it's third party software handling the account setup and to wait 72 hours for the online application to reset and that I must have gotten one of the Identification questions wrong (that's incorrect). So 72 hours passed and I tried again today. Denied. Disheartening. I was a customer before who closed his account (gotta stop doing that)  but i am being told that shouldnt have any impact on a new application. 
JeffinEasternFL
  |     |   Comment #5
Buckeyes, have you ever requested Chex systems report to double proof your info on file? Just a thought...
JeffinEasternFL
  |     |   Comment #4
Great bank, actual bank employees IN the USA located brick-and-mortar branches ANSWER the phone (and return calls too). The "sweeps program" gives you the SAME APR but, allows FDIC coverage to $1M on that money market account. Additionally, they have a great product line that probably will be a "good bank" to have your daily banking needs met and serviced. I consider it the best liquid savings account offered by a "real" physically located bank with offices a customer can walk into if so desired. Even in low rate environment the Money Market was a rate leader, just like in high-rate periods. Oh, Did I mention: the money market checks are FREE!
Buckeyes
  |     |   Comment #6
i was a customer before who closed my account but i am being told that shouldn't interfere with a new application. they also would not reopen that account which is understandable. your point is interesting though because they seem to think i lived an interesting life in 2018. Always asking questions about things that either happened in that year or around that year. Always none of the above is the answer.
dantheman46
  |     |   Comment #7
Opened today. They require a wire transfer from another bank as the initial funding source. Once you do this, you can then use another bank to link to this account for ACH transfers in and out. Good thing I get free domestic wires from one of my banks. They also offer free checks for this account. It actually shows up as a checking account in my online banking.
JeffinEasternFL
  |     |   Comment #8
My external ACH's (IN and OUT) often show up in one DAY!
NYCDoug
  |     |   Comment #9
Be forewarned that Merchants, anachronistically, is very adamant about levying fees for withdrawals beyond the now-deprecated — and almost universally waived — Federal Regulation D limit of six withdrawals per month. You will get hit with a $2 charge for each "excess" withdrawal, even if they were "trial deposit" micro-withdrawals (on the order of cents).

This monetary injury is added by an FI which, insultingly, does not allow you to initiate internal ACH transactions from within your very own account. They are quite strict — even robotic — about this policy; no compassion, mercy or lenience is shown for long-standing customers, nor high balances.

Merchants used to be quite friendly and easy to work with, even reaching out with surprise courtesy calls. (This, before the plug was pulled on initiating ACH transfers; the result of one "rotten apple" fraud spoiling things for the rest of us.) Now I wonder about their future direction. Seems we're all falling on hard times.

Anyway, carefully count up those withdrawals on your hands each month; don't want to lose any fingers!
fdic
  |     |   Comment #10
Thanks for the heads up. Brio sent me letters in the mail too warning me about the withdrawals and they were the trial ones but thankfully they did not charge any fees.
You are right, some of the MBI's polices seem lacking common sense. Lot of people reported getting their brand new account closed if a trial deposit hit before the WT
Buckeyes
  |     |   Comment #11
@NYCDoug tt could very well be exclusive to the personality of whoever is manning their customer service calls. When I couldn't open an account because whatever service they use didn't approve me, she talked to me as if i was 2 years old. I'm still not approved, but in the meantime I switched to the very competitive connect one and that's really gone well. Madison helped me a ton when I first opened my account 2 years ago at Merchants, but then they promoted her so she is off phones, and who knows with Covid if she is even there anymore. I didn't get the name of the rep i recently got. Didn't think of it. I may not be a computer or banking expert, but I'm not 2 years old.
Merchants Bank of Indiana Money Market Account Is New Rate Leader
Deal Summary: Money Market Account, 2.28% APY on all balances up to $1 million, $50 minimum opening deposit.

Availability: Nationwide through online application.

Yesterday, Merchants Bank of Indiana (MBoI) boosted the rate on its nationally available Money Market Account (MMA) to 2.28% APY; the new rate applies to all balances up to $1 million. While there is no minimum balance requirement to earn the stated APY, a minimum $50 deposit is required to open a new MMA.

Added to MBoI’s product line in early 2019, the MMA’s...

Continue Reading
Merchants Bank of Indiana Hikes Money Market Account Rate Again
Deal Summary: Money Market Account, 1.51% APY on all balances up to $1 million, $50 minimum opening deposit.

Availability: Nationwide through online application.

Merchants Bank of Indiana (MBoI) recently boosted the rate on its nationally available Money Market Account (MMA) to 1.51% APY on balances up to $1 million. The 50 bps increase is the second substantial rate hike in the past four weeks. Opening MMA requires a $50 minimum deposit.

Added to MBoI’s product line in early 2019, the MMA’s initial rate was 1.75% APY, which remained...

Continue Reading
Merchants Bank of Indiana Boosts Money Market Account Rate
Deal Summary: Money Market Account, 1.01% APY on all balances up to $1 million, $50 minimum opening deposit.

Availability: Nationwide through online application.

Merchants Bank of Indiana (MBoI) recently raised the rate on its nationally available Money Market Account (MMA) to 1.01% APY on balances up to $1 million. The MMA requires a $50 minimum opening deposit.

Added to MBoI’s product line in early 2019, the MMA’s initial rate was 1.75% APY, which remained in effect until March 2020. Following three rate drops, the APY bottomed out...

Continue Reading
Merchants Bank of Indiana Money Market Currently Offers Leading Rate
Deal Summary: Money Market Account, 1.00% APY on all balances up to $1 million, $50 minimum opening deposit.

Availability: Nationwide through online application.

I would like to thank DA reader, enelrad112, for the Forum post about Merchants Bank of Indiana’s (MBoI) nationally available Money Market Account (MMA), which currently earns 1.00% APY on balances up to $1 million. The MMA requires a $50 minimum opening deposit.

Added to MBoI’s product line in early 2019, the MMA’s initial rate was 1.75% APY, which remained in effect until March 2020....

Continue Reading


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