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. Following two rate drops in March, the MMA has been earning 1.00% APY. What was considered to be a mediocre rate not that long ago will be in the near the top in DA’s next Best Bank Account Rate Summary (unless Murphy’s Law/Curse of DA triggers an imminent rate cut).
MBoI’s website is light on documentation (no Truth-in-Savings disclosure available), so the following information comes from a CSR.
- There is no monthly service fee or minimum monthly balance requirement.
- There is unlimited checking writing and an ATM/debit card can be requested.
- Funding is through ACH.
- There are no daily/weekly dollar limits on ACH transfers initiated from MBoI.
- If you exceed the standard six transactions per month, there is a $2 fee for that month. Exceeding the six transactions can be done three times in a year, but following the fourth time, the account will be converted to a regular checking account.
Headquartered in Carmel, Indiana, Merchants Bank of Indiana offers its Money Market Account to all U.S. citizens and resident aliens, 18-years or older, who have a valid Social Security number. While MBoI is a fairly large bank (almost $10 billion in assets), I am always 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.
Our branches will operate by drive-thru only where drive-thru service is available. For branches without a drive-thru, those lobbies will remain open with precautionary measures in place. With this in mind, to reduce in-person contact we are asking our customers to contact us via phone or email, and use online and mobile banking services. Where branch lobbies are closed, we are happy to schedule in-person meetings with customers by appointment.
Merchants Bank of Indiana has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 1.03% (excellent) based on June 30, 2020 data. In the past year, MBoI has increased its total non-brokered deposits by $1.87 billion, an excellent annual growth rate of 73.75%. 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 $9.5 billion in assets and $7.1 billion in deposits as of September 30, 2020. Other Merchants Bancorp direct and indirect subsidiaries include Merchants Capital Corp., Farmers-Merchants Bank of Illinois, and Merchants Mortgage, a division of Merchants Bank of Indiana.
How the Money Market Account Compares
When compared to the Money Market Accounts tracked by DepositAccounts.com that are available nationwide, have a low minimum balance requirement, and are not limited by a small balance cap, Merchants Bank of Indiana’s Money Market Account APY currently ranks first.
The above rates are accurate as of 11/7/2020.
To look for the best Money Market Account rates, both nationwide and state specific, please refer to our Money Market Account Rates Table page.