Thanks to DA reader, midas89, for the Forum post announcing that Republic Bank of Chicago (Republic Bank) “has joined the 4% Club.” The Digital Money Market (DMM) account, which was added to the product line in August, currently earns 4.00% APY, following a 62-bp increase this week. The minimum opening deposit is $2.5k of new money (funds not currently on deposit with Republic Bank). Should the account balance fall below $2.5k, no interest will be earned and there will be a $25 monthly maintenance fee.
|4.00%||$2.5k||-||Republic Bank of Chicago||Digital Money Market - New Money|
There is no Truth-in-Savings disclosure available on the Republic Bank website; the following information is from a Live Chat and differs slightly from my August blog post.
- The DMM can be opened online by all U.S. citizens, with the exception of those who live in Illinois, Indiana, Michigan, or Wisconsin.
- Check writing is available ($30 per pack of 16 checks, includes “taxes, fee, and standard shipping”). Republic Bank continues to honor the Fed pause and currently there is no excessive transaction fee; the limit of six transactions per month has been temporarily lifted. Once the Fed pause is rescinded, “If you process more than 6 debits for three consecutive months, you will be required to change the product type from digital money market to a regular checking account.”
- Initial funding ($2.5k min/$25k max) can be done through an ACH (at the end of the online application).
- Once the DMM is opened and online banking has been established, mobile deposits can be done. There is also a mobile app that can be used for deposits. In addition to direct deposits, ACH credits and wires, you can also mail in checks or make deposit in-branch.
- Outgoing ACH transfers initiated by Republic Bank are limited to a low $2.5k per day and $10k per 30 day rolling cycle.
- Contrary to what I was told in August, there is no ATM/debit card associated with the DMM.
- Unlimited beneficiaries can be designated (equal shares) and Social Security numbers are not required. Republic Bank requires “first and last name, date of birth, and current address for beneficiaries."
Headquartered in Oakbrook, Illinois, Republic Bank has a brick-and-mortar presence in the Chicago metropolitan area (Chicagoland), which has an estimated population nearly 8 million.
The market area for the Digital Money Market is significantly larger: all U.S. citizens, 18 years or older, are eligible to apply, with the exception of those who live in Illinois, Indiana, Michigan, or Wisconsin.
Opening a Digital Money Market can only be done online, but as I mentioned above, deposits into a Digital Money Market account can be done in-branch, if you happen to be visiting the Chicago area. There are 19 full-service Illinois branches located in Addison, Berkeley, Berwyn, Chicago (5), Darien, Hodgkins, Lincolnwood, Naperville, Oak Brook, Orland Park, Palos Park, Tinley Park, Vernon Hills, and West Chicago (2).
Republic Bank has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 8.77% (excellent) based on June 30, 2022 data. Republic Bank has an excellent capitalization level (11.35%), the result of holding assets of $2.43 billion with $275.99 million in equity. Please refer to our financial overview of Republic Bank (FDIC Certificate # 19333) for more details.
Founded in 1964 with one branch location on the southwest side of Chicago, Republic Bank of Chicago is currently Illinois’ 17th largest bank, with assets in excess of $2.4 billion and nearly 35,000 customer accounts. Between 1994 and 2015, Republic Bank acquired seven Chicago area banks, expanding its footprint in Chicagoland. As a stable and growing bank, it should not be confused with the former National Republic Bank of Chicago, which was taken over by the Dallas-based State Bank of Texas in 2014.
How the Digital Money Market Compares
When compared to the Money Market Accounts and Savings Accounts tracked by DepositAccounts.com that are available within the market area and do not require large balances, direct deposit, or have small balance caps, the Republic Bank Digital Money Market APY currently ranks second.
|APY||Account Name||Credit Union/Bank|
|4.01%||Money Market Account ($1k min/no max)||Brilliant Bank|
|4.00%||Digital Money Market ($2.5k min/no max)||Republic Bank|
|3.87%||Money Market Savings ($1 million min/no max)||First Internet Bank|
|3.85%||High Yield Money Market ($1k min/no max)||CFG Bank|
|3.83%||UFB High Rate Savings (no min/no max)||UFB Direct|
The above information and rates are accurate as of 11/18/2022.