My Banking Direct Ups High Yield Savings Rate While Money Market Lags

I first reviewed New York-based My Banking Direct in 2005 when it was offering competitive rates on its money market account. During its history, the My Banking Direct Money Market had periods when it was competitive, but that ended in March 2020 when the top-tier rate fell to 0.25%. The Money Market rates haven’t changed, but in early February, My Banking Direct launched the High Yield Savings account with rates that have been competitive (and sometimes rate-leading.) The High Yield Savings account is currently earning 1.00% APY on balances of $1+, following a 23 bps increase last week. The minimum opening deposit is $500, with no stated balance cap.

While the 1.00% APY currently applies to all balances, the High Yield Savings landing page lists three tier levels, which could be an indication of possible tiered rates in the future.

• $1.00 – $9,999.99
• $10,000.00 – $49,999.99
• $50,000.00 and above

There are no monthly or maintenance fees associated with the High Yield Savings account. A minimum balance of $1 must be maintained to earned that stated APY. CSR stated that an ATM card will be issued upon request. While the opening deposit must be made through an ACH transfer, additional deposits can be made using the ATM card. Withdrawals can be made using the ATM card or through ACH transfer. If a High Yield Savings account is closed using the NYCB Online banking platform, a cashier’s check will be issued to the address on file. There is an early closure fee of $30 if a High Yield Savings account is closed within six months of opening.

ACH Limitations

In the past, My Banking Direct’s outbound ACH transfer limits ($5k per day and $20k over rolling 30 days) were a point of contention. According to CSR, the transfer limits have significantly improved: $50k per day and $200k over a rolling 30 calendar day period. CSR also stated that newly opened accounts are no longer subject to stringent transfer limits.

12-Month CD

About three months ago, I wrote about My Banking Direct’s very competitive 12-, 24-, and 36-month CDs. In the current rapidly rising rate environment, the APYs on these three CDs have not kept up and are no longer market-leaders. The 12 month CD (currently earning 1.50% APY) is worth mentioning because it is also an add-on CD.

As stated in the CD Truth-in-Savings (TIS) disclosure,

12 Months or less – You may make additional deposits into your account at any time during the term of the certificate.

The TIS disclosure also states that the Early Withdrawal Penalty is,

12 months up to and including 35 months: 180 days’ daily compound interest on the principal amount withdrawn.

An early withdrawal is not necessarily guaranteed:

You may not make withdrawals of principal from your account before maturity, unless we agree at the time you request the withdrawal.

Funding and Distribution of Maturing Funds

Funding a Certificate can be done by ACH or wire transfer. There is a short seven calendar day grace period before a Certificate will renew. Renewing a maturing Certificate can be done online “anytime … day or night." If you choose to not renew the Certificate, the maturity funds will be placed in an interest-bearing, Post-Maturity savings account. According to the TIS disclosure, a Post-Maturity account will be used to,

receive funds from matured certificate of deposits (“CD”) that did not contain an automatic renewal option, or for non-renewable CD’s that you have not closed upon maturity.

Availability

Headquartered in Westbury, New York (Long Island), My Banking Direct is an online division of New York Community Bank and offers its product line to U.S. citizens/residents aliens, 18 years or older, who have a valid Social Security number or Individual Taxpayer Identification number.

Opening a High Yield Savings account can only be done online. CSR stated that if the High Yield Savings account is going to be a joint account, “all joint account holders should be available to validate their personal information” during the online application process.

Bank Overview

As an internet division of New York Community Bank (NYCB), My Banking Direct operates under NYCB’s FDIC Certificate and shares its financial history.

My Banking Direct/NYCB, has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 0.46% (excellent) based on December 31, 2021 data. In the past year, the Bank’s total non-brokered deposits have increased by $2.26 billion, an excellent annual growth rate of 8.3% APY. Please refer to our financial overview of My Banking Direct/NYCB (FDIC Certificate # 16022) for more details.

My Bank Direct is described as a “service” of Long Island-based New York Community Bank. The bank was established in 1859 as Queens County Savings Bank and remained so for over 140 years. In 2001, the New York Community Bank rebrand occurred with the headquarters moving from New York City to Westbury (Long Island). Between 2001 and 2018, eight banks in four states were acquired, with New York Commercial Bank being the most recent acquisition. New York Community Bank is currently the sixth largest bank headquartered in New York, with assets in excess of $59 billion and more than 716,000 customer accounts.

How the High Yield Savings Account Compares

When compared to the nationally available Savings Accounts tracked by DepositAccounts.com that do not require a large minimum balance and are not limited by small balance caps, My Banking Direct’s High Yield Savings APY currently ranks second.

The above information and rates are accurate as of 5/9/2022.

To search for the best Savings Account, both nationwide and state specific, please refer to DepositAccounts.com’s Savings Account Rates page.