VirtualBank has just added a fixed, one year introductory 2.01% APY on new eMoney Markets opened with new money, which is defined as funds “not currently held by VirtualBank". The minimum opening deposit is $100.
As stated on the Rates page,
Accounts opened and initially funded with money transferred from an existing
VirtualBank account are not eligible for the 1-year introductory period APY.
The next sentence on the Rates page should not be overlooked:
After the 1-year introductory period, interest rates and APYs
will be adjusted to the standard eMoney Market rates in effect.
The rates for both the non-promotional eMoney Market and Jumbo eMoney Market have been low for years. Currently, the eMoney Market earns 0.80% APY on all balances, while the Jumbo eMoney Market earns 0.90% APY balances up to $250k. Caveat emptor, indeed.
According to the Truth-in-Savings disclosure, the eMoney Market has no checking writing privileges, making it more like a savings account than a money market account. If the eMoney Market’s balance falls below $100, there is a $5 monthly service fee. There is also a $15 excess transaction fee for each automatic transfer or payment beyond the six allowed per month.
Not surprisingly, there was no information on VirtualBank’s website concerning ACH transfers. I did a Live Chat and CSR was able to answer my questions fairly easily.
Q – Do you have an ACH transfer service to initiate transfers to and from external accounts?
A – Yes, you can add the external accounts through your online banking. You will need to verify the accounts though. It is not difficult and we are always here to assist you.
Q – Is it a free service?
A – Yes, it is free.
Q – Are there any dollar amount limits for incoming and outgoing transfers?
A – Outgoing is typically $3,000, however, that limit can be increase easily.
Q – Are there any limitations on ACH transfers that originate from another bank?
A – Not that I am aware of. Let me confirm ... no limitations.
Thanks to DA reader, IvoryMale, for his timely Forum post about the new eMoney Market promotion.
As DA reader, alan1, noted in a Forum post today, VirtualBank raised the rate on its 12-month eCD (2.27% APY), adding 17 bps. The 24-month eCD also has a new rate (2.55% APY), following an increase of 35 bps. All Virtual Bank eCDs require a minimum opening deposit of $10k, with no stated balance cap.
|2.55%||$10k||-||Virtual Bank||24 Month eCD|
|2.35%||$10k||-||Virtual Bank||12 Month eCD|
As stated in the Truth-in-Savings disclosure, the Early Withdrawal Penalty reads as follows:
Term is at least one year but less than two years: 1% of principal amount withdrawn.
Term is at least two years: 2% of principal amount withdrawn.
In my February blog post about VirtualBank, I wrote in some detail about accessing eCD maturing funds. VirtualBank’s default is issuing a paper check, but as DA reader, itserich, suggested, transferring maturity funds to an existing VirtualBank eMoney Market is a good work-around.
VirtualBank became an internet division of IBERIABANK in July 2017. Accounts at VirtualBank can be opened by U.S. citizens with valid Social Security numbers.
Since being acquired by IBERIABANK, VirtualBank has added a PDF version of its account application, which can be returned by snail mail or by fax.
As an internet division of IBERIABANK, Virtual Bank operates under IBERIABANK’s FDIC Certificate and shares its financial history.
VirtualBank/IBERIABANK has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 4.49% (excellent), based on December 31, 2017 data. In the past year, the Bank has increased its total non-brokered deposits by $4.17 billion, an excellent annual growth rate of 25.71%. Please refer to our financial overview of VirtualBank/IBERIABANK (FDIC Certificate # 28100) for more details.
VirtualBank was originally the internet branch of Lydian Private Bank. When Lydian failed in 2011, Sabadell United Bank assumed all deposits, as well as the VirtualBank division. On July 31, 2017, IBERIABANK Corporation finalized its acquisition of Sabadell United Bank, including VirtualBank.
IBERIABANK is currently Louisiana’s largest bank, with assets in excess of $27.8 billion and more than 446,000 customer accounts. The acquisition of Sabadell United Bank expanded IBERIABANK’s presence in South Florida and increased its asset base by more than $5 billion.
How the eMoney Market Compares
When compared to the 180 Money Market Accounts tracked by DepositAccounts.com that are nationally available, Virtual Bank's eMoney Market introductory APY currently ranks first. The one year guarantee only enhances the eMoney Market’s competitiveness.
To look for the best Money Market Account rates, both nationwide and state specific, please refer to our Money Market Account Rates Table page.
How the eCD Compares
When compared to the 208 similar length-of-term CDs tracked by DepositAccounts.com that are available nationally and require a minimum deposit of $10k or less, VirtualBank's 12-month eCD APY currently ranks third.
The above rates are accurate as of 5/8/2018.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.