Utah-based Zions Bank’s Online Money Market account made its debut last week, offering 2.26% APY on balances of $25k and above. Balances between $1k and $24,999.99 earn 0.01% APY, with balances below $1k not earning any interest.
The Online Money Market can be opened with as little as $500, but the 2.26% APY does not go into effect until there is a minimum $25k balance. Interest is compounded daily and paid monthly. There is no monthly maintenance fee, but a $15 excess transaction fee will be assessed for each additional withdrawal made “by check, debit card, or pre-authorized, telephone, or computer” beyond the six (6) per statement cycle allowed.
In an email exchange with a Zions Bank official, I asked several questions concerning important issues, including,
Is this a promotional rate? Or does Zions plan to keep the account competitive?
The rate we are offering is the base rate for the product, not a teaser or promotional rate. That being said, we will continue to adjust the rate up or down based on the market and our liquidity needs.
I see that checks can be written. Does Zions provide any free checks?
We do not include free checks, but customers are welcome to order checks from us or from their supplier of choice.
Any hard credit inquiries in the application process?
No. We use a variety of fraud prevention tools in the background, but we do not require a credit check for deposit accounts.
Zions Bank does have an ACH transfer service – the Personal External Transfer Tool, which can be found in Online Banking. A few of the details of the tool features are as follows:
- There is a limit of $10k transferred in and $10k transferred out per day.
- For new accounts Zions Bank uses a trial deposit method to verify ownership of the initial funding account.
- There is no limited on the number of institutions that can be added to the Personal External Transfer.
- The initial deposit has a 5-day hold, which could be extended if the trial deposits are unverified by the account owner. Ongoing transfers through the Online Banking Personal External Transfer service have a 3-day hold.
- Zions Bank does not have a hard limit on outgoing external transfers when initiated by another institution. However, Zions Bank manually reviews all outgoing transactions over $100k.
Zions Bank has a page on their website dedicated to mobile banking, which explains the ins-and-outs of mobile banking, including,
Mobile Check Deposit is available through the Mobile Banking App on iPhones, iPads, Android smartphones, and Android tablets.
Transfers to a Friend – send up to $1,000 a day to someone that banks with Zions Bank.
External Transfers – send up to $10,000 a day to and from your accounts at another financial institution.
According to my contact at Zions Bank, “To prevent fraud, our limits are a bit low for new accounts, so larger transfers should come through one of our other deposit methods (wire or ACH).”
The Zions Bank Agreement Center (a collection of documents and not a place) is the central location for all disclosure documents. The answer to almost every question you might have about the Online Money Market can be found there.
Headquartered in Salt Lake City, Zions Bank’s Online Money Market is being offered to U.S. citizens and resident aliens, 18 years or older, who have a valid Social Security number, with the exception of those who live in Arizona, California, Colorado, Idaho, Nevada, Oregon,Texas, Utah, and Washington.
Opening an Online Money Market account can only be done online.
The online application can accommodate one joint owner but does not allow for beneficiaries and/or trusts to be added. Once the account is opened, Internet Services (866.761.8349) can assist in adding beneficiaries or setting up a trust.
Zions Bank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 4.08% (excellent) based on June 30, 2018 data. In the past year, the Bank has increased its total non-brokered deposits by $224.72 million, an above average annual growth rate of 0.44%. Please refer to our financial overview of Zions Bank (FDIC Certificate # 2270) for more details.
Zions Bank is currently the 37th largest bank in the nation, with assets in excess of $66 billion and more than 1.5 million customer accounts. Founded in 1873 as The Utah State National Bank of Salt Lake City, the Bank has rebranded four times and acquired 28 banks in its 145-year history.
How the Online Money Market Compares
When compared to 190 Money Market Accounts tracked by DepositAccounts.com that are available nationwide, Zions Bank's Online Money Market APY currently ranks first, regardless of minimum balance requirement.
The above rates are accurate as of 10/30/2018.
To look for the best MMA rates, nationwide and state specific, please refer to our Money Market Accounts Rates Table.