There’s a new internet bank called MyCBB. It was recently launched by California Business Bank. MyCBB’s deposit products are available nationwide, and they include a free checking account, money market account and short-term CDs. The deposit rates are not exceptional, but they are competitive. Currently, the free checking account has the most competitive rate with a 0.79% APY on all balances. It’s important to remember that rates on internet checking accounts are lower than internet savings account rates. For a non-promotional rate, the only internet checking account with a higher rate is Capital One 360, but the 360 Checking requires a $100K balance for a 0.90% APY. Below are the important features of the free checking account:
- Minimum opening deposit is $100
- Free initial paper check order
- Free online and mobile banking tools
- Free access to 24,000+ ATMs nationwide (via the Moneypass ATM network)
As compared to other short-term CDs, MyCBB’s two shortest CDs with terms of 2- and 6-months are very competitive. However, the rates are low when compared to the best internet savings accounts from other banks. The minimum deposit for MyCBB CDs is $5,000. According to the CD’s terms and fees document, the early withdrawal penalty for terms from 30 days to 365 days is 3 months of interest.
MyCBB’s personal money market account has a rate (0.83%) that’s a little higher than the checking account rate. This account has a minimum opening deposit $1,000, and like any money market account, there’s a limit of 6 withdrawals per month.
Questions and Answers about MyCBB and the Accounts
Details of the accounts along with the account terms and fees documents are available at the MyCBB.com website. I was able to get some additional details about MyCBB.com and the accounts via an email exchange with MyCBB’s Chief Information Officer and Head of Deposits, Peter Braunz. Below are some of the questions and answers from that email exchange:
The following question and answer apply to all MyCBB accounts:
Q: Can beneficiaries be added to the accounts (i.e. POD)? Can multiple beneficiaries be added? Can this be done in the online application? Or does this have to be done after the application has been submitted? Note, this is an important feature for many of my readers.
A: Individuals and Joint ownership structures are available in the application. We are currently working on Trusts and UTMAs. Vesting can always be changed after the fact by simply emailing us a form.
The following questions and answers are in regards to setting up online funds transfers:
Q: Are the links set up online via trial deposits.
Q: How many links can be established?
A: Up to 3 Financial institutions can be added
Q: Can links be made to both checking and savings accounts?
A: Yes (Checking, MMA, & Savings)
The following questions and answers are in regards to transferring funds after a link has been established:
Q: Are there any limits on the amount that can be transferred ? (per transaction, per day and per month limits? size differences for incoming vs. outgoing?)
A: Inward: $25,000 per Trans; $25,000 per Day; $50,000 per Month Outward: $50,000 per Trans; $50,000 per Day; $100,000 per Month
Q: How fast are the transfers done?
A: Inward: 3 days Outward: Receiving FI will typically make available within 3 days.
Q: How soon will the funds become available after a deposit is done via online transfer?
A: 3 days
Q: Are there any restrictions on ACH transfers if they originate from another bank?
A: No restrictions (limits). However, please note that 3 days is the typical FI to FI settlement period.
The following questions and answers are about the bank:
Q: What was the goal of California Business Bank in launching the internet bank, MyCBB?
A: There seemed to be a real need for an internet based banking play that didn’t compromise on customer service. Too often internet banks are not easy to deal with, not easy to get a hold of, and leave a lot to be desired. We have a real strength in customer service and trying to understand the needs of the customer. Rolling out MyCBB allows us to extend that expertise, and bring that level of customer service outside of a branch based system.
Q: How are you differentiating MyCBB from the other online banks?
A: Really it goes back to the customer; making sure there are multiple channels to engage them in, and service their needs. And then from a technology perspective, you would be surprised at how antiquated some "online" banks really are. There really are only a few that do it well, that really prioritize the technology as a tool for the customer, as opposed to simply viewing the internet as a low cost way to do business. If the technology doesn’t better the customer experience, what’s the point? We offer a fully featured online platform, but if you wanted to just call in and have us check something for you, we can do that as well. We really do pride ourselves on the customer service, and that’s what our customers love about banking here
Q: MyCBB is currently offering some competitive rates. Is there a long-term plan to remain competitive?
A: MyCBB aims to always offer a competitive rate, a great product, and a great customer experience. Consumers are tired of tiered rates, promotions, and gimmicky accounts. We keep it simple, we have a cost structure that gives us a strategic advantage, and we’re dedicated to the space
I would like to thank Mr. Braunz for his quick replies to my email questions. It’s always nice to see a new internet bank. The more competition, the better it is for savers.
MyCBB is a division of California Business Bank. It’s a small bank with one office located in Los Angeles. Total assets are just under $81 million, and total deposits are just under $57 million. The bank has an overall health grade at DepositAccounts.com of a "B+" with a Texas ratio of 6.10% (excellent) based on December 31, 2014 data. Please refer to our financial overview of California Business Bank for more details. The bank has been a FDIC member since its establishment date in 2005.