UPDATE 12/4/2017: Money Market Account rate increased by 10 bps.
Nationwide Bank’s Money Market account has not been part of DA’s bi-weekly Best Rates Summary since late June 2017. At that time, all Savings and Money Market accounts with APYs of 1.00% APY or less were removed, as the climate of rising rates made these accounts non-competitive. Nationwide raised the rate on its Savings Account to 1.30% APY in August, and I had hoped the Money Market rate would soon follow suit. It took three months, but as of yesterday, Nationwide’s Money Market now earns 1.30% APY on balances of $10k+; balances below $10k earn 1.05% APY.
|1.40*%||$10k||-||Nationwide Bank||Money Market|
|OTHER TIERS: 1.15% → Up to $10k|
There’s a good reason I couldn’t remember the last time I wrote about Nationwide’s Money Market: my most recent blog post on the Money Market account was in 2008. Starting in 2010, the Money Market’s APY began a long free-fall, bottoming out at 0.50% in the summer of 2016. This past May, the rate was raised to 0.75% APY and yesterday’s addition of 55 bps was only the second rate increase in more than eight years.
According to the Money Market Account page, there are low, or possibly no fees associated with this account:
$0 monthly maintenance fee when you maintain a minimum daily balance of $1,000 or more. Otherwise $8.
$0 preauthorized withdrawals up to 6 per monthly statement cycle via telephone or electronic transfers, check or ATM card transactions. Each additional is $5.
$0 non-Nationwide Bank ATM transactions up to 2 per month. The fee is $1.50 after the first two. Fees from the ATM owner may apply.
$0 online statements detailing your monthly activity.
$0 money transfers with your Nationwide bank accounts and your accounts with other banks.
Nationwide Bank’s money market account rate may now be competitive, but its bank-to-bank transfer service is not. Standard transfers are limited to $5,000 per transaction and per day. The monthly limit (30 day rolling) is only $10,000. Full details are listed in the transfer section of Nationwide Bank’s online banking FAQs.
According to a CSR, standard transfers take 3 to 5 business days. They do have next-day transfers, but these have even smaller limits ($2k per day). I was told there are no dollar limits when the transfers are initiated by another bank.
One advantage of the money market account over the savings account is that you can access your money with checks. I confirmed with a CSR that the money market account does have check writing capabilities. When you apply, they’ll provide three convenience checks for free. Additional checks must be ordered. Due to federal regulation, money market accounts are limited to no more than six withdrawals by check per statement cycle.
Headquartered in Columbus, Ohio, Nationwide Bank is an internet bank that has no brick-and-mortar branch locations. Its entire product line is available nationwide and must be opened using the Bank’s online application.
According to Nationwide Bank’s FAQs concerning the opening of a Money Market account:
You’ll enter some basic information about yourself and up to 4 joint account owners. This includes address, date of birth, SSN and occupation.
We’ll ask you a few questions about how you’ll use your account(s). You can open up to 6 accounts.
You’ll make your opening deposit from one of many convenient options, including another bank account or debit card.
Nationwide Bank has an overall health grade of "B" at DepositAccounts.com, with a Texas Ratio of 1.70% (excellent) based on June 30, 2017 data. Nationwide Bank has an average capitalization level (8.45%), the result of holding $7.25 billion in assets with $612.17 million in equity. Please refer to our financial overview of Nationwide Bank (FDIC Certificate # 30470) for more details.
While Nationwide Bank was established 19 years ago as the Nationwide Trust Company, its roots can be traced back to Nationwide Corporation, an auto insurer for farmers in Ohio in the 1920s. The name was changed to Nationwide Bank in 2007 when the Bank began offering products to the public. Nationwide Bank is currently Ohio’s eighth largest bank with assets in excess of $7.2 billion and more than 97,500 customer accounts throughout the country.
How the Money Market Compares
When compared to the Money Market accounts tracked by DepositAccounts.com that are nationally available and do not have low balance caps, Nationwide Bank’s Money Market APY currently ranks third, regardless of minimum required balance.
The above rates are accurate as of 11/29/2017.
To review the best Money Market rates, both nationwide and state specific, please refer to our Money Market rates table or our Rates Map page.