New All-Digital ZYNLO Bank Offers Top Money Market Rate

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Update 3/29/21: The 1.25% Money Market promotion is no longer available.

Deal Summary: Money Market Account, 0.80% APY on all balances; Promo rate: 1.25% APY up to $250k, 0.10% over $250k.

Availability: Nationwide except for MA, CT, NY and CA

The Massachusetts-based, PeoplesBank, has a digital bank that offers checking, savings and money market accounts. In today’s environment, it’s always nice to see a new online bank that’s offering competitive deposit rates. The online-only bank is called ZYNLO Bank, and its money market account should be most appealing to those looking for top deposit rates. The current standard rate (0.80% APY on all balances) is very competitive, and there’s also a promotional rate for new customers. Details of this promotion are listed below. First is my review of ZYNLO Bank and its money market account along with short reviews of the checking and savings accounts.

Thanks to the DA reader who emailed me news of this new bank and to the DA reader ichaelm who first posted info on this bank and promo in the DA Forum.

ZYNLO Bank Features

PeoplesBank partnered with the technology provider, NYMBUS, to provide online and mobile banking services through ZYNLO Bank. Unlike some digital-only neobanks that only allow account access through their smartphone app, at ZYNLO you can apply and access your account with either a smartphone app or through the website.

NYMBUS may have helped PeoplesBank with technology, but that didn’t help the Bank with documentation. ZYNLO Bank’s website is light on account details and FAQs. I could not find any account disclosure on the website. However, I was able to find an account disclosure document at PeoplesBank’s website that mentions the ZYNLO Bank accounts.

Most of the details that I described below are either based on my conversation with a ZYNLO customer service representative or from the above disclosure document. The CSR seemed fairly knowledgeable, but as is often the case with CSRs, accuracy may not always be 100%. So if you were told something different, please leave a comment. In fact, please leave a comment about account details that you were told by the CSR even if they’re the same as I mention below. I’ll make updates based on new and or more accurate information.

Customer Service

According to the FAQ, customer service is available 24/7 by phone at 1-844-996-5622. Once you’re a customer, you can also reach customer service by logging into your account and sending a secure message.

Fees

Another important FAQ highlights the fact that there are no monthly fees with any of the accounts.

In my conversation with the CSR, I was told that the money market account has an excessive withdrawal fee. If you withdraw more than six times in a month, the excessive withdrawal fee is $25 per additional withdrawal during that same month.

There’s also a $10 monthly dormant fee that’s charged if your balance is under $2,500 and you have at least 12 months of inactivity. According to the CSR, automatic transactions (like ACH transactions initiated from an outside bank) do not qualify as an activity. Manual transactions like initiating an ACH transfer from ZYNLO qualifies as an activity.

Bank-to-Bank ACH Transfers

It’s common for new online banks to be weak on their electronic transfer service. Not only are the transfer features weak, the banks often do a poor job at documenting the features and limitations. This is the case for ZYNLO Bank. There’s no information on the website detailing the electronic transfer features (what is often called the ACH transfer features). The following information was provided by the ZYNLO CSR:

  • The typical trial-deposit system is used to establish links to your accounts at other banks before ACH transfers can be initiated from ZYNLO Bank.
  • Multiple links to outside bank accounts can be established for ACH transfers.
  • ACH transfers initiated at ZYNLO Bank have the following dollar amount limitations:
    • Incoming: $50k/day and $50k/month
    • Outgoing: $10k/day or $25k/month
    • Limits can be temporarily raised to $250k/month for incoming and $100k/month for outgoing with pre-approval via phone or secure message
  • ZYNLO Bank allows ACH transfer requests to originate from your other banks.
  • No wire transfers allowed (either incoming or outgoing)

Money Market Account

ZYNLO Bank’s money market account non-promo rate is currently very competitive (0.80% APY). This is a variable rate that can change monthly at the discretion of the Bank. According to the CSR, this applies to all balances. Interest is compounded daily and credited monthly.

APYMINMAXINSTITUTIONPRODUCTDETAILS
0.80*%-$250kZYNLO BankZynlo Money Market
OTHER TIERS: 0.10% $250k+
Rates as of September 14, 2021.

Minimum balance to open the account is $10, and the minimum balance to qualify for the APY is only $0.01.

If you close your account before interest is credited, you will not receive accrued interest.

You can’t order checks from ZYNLO, but you are allowed to order paper checks from a third party and make payments using those checks. This is according to the CSR. The FAQ only mentions this as a feature of the checking account.

As I mentioned above in the fee section, I was told that the money market account has an excessive withdrawal fee. If you withdraw more than six times in a month, the excessive withdrawal fee is $25 per additional withdrawal during that same month.

Note, it’s rare for new online banks to maintain top rates over the long run. After a year or two, their rates typically fall near or below the rates offered by the major online banks.

Checking Account

Only the ZYNLO Checking account offers a debit card and ATM access. ZYNLO has “partnered with Allpoint to offer customers over 55,000 ATMs completely free of charge.” ZYNLO doesn’t charge a fee when you use an out-of-network ATM, but the ATM owner will. There are no refunds of ATM fees charged by ATM owners that are outside the Allpoint network.

You can’t order checks from ZYNLO, but you are allowed to order paper checks from a third party and make payments using those checks.

ZYNLO Bank offers online bill payment, person-to-person payment system, touchless mobile phone payments (via Apple Pay, Google Play or Samsung Pay), mobile check deposits ($10k limit) and the Early Payday feature that allows direct deposits to be available up to two days early.

Savings Account

The primary feature of the ZYNLO Bank Savings Account is the round up. When you use your Checking Account debit card to make purchases, ZYNLO Bank will round up the purchase and transfer this round-up amount to the Savings Account. In addition, ZYNLO Bank offers a round up reward that is calculated as follows:

All new customers get a 100% match during their first 100 days. Customers who maintain an average daily balance of $3,000 will continue to receive a 100% match thereafter. And customers who maintain a balance below $3,000 will still receive a 25% match.

Update 3/29/21: The website now lists the rate for the savings account (the Tomorrow Savings) in this PeoplesBank PDF of ZYNLO Deposit Rates.

The website doesn’t list any rate or APY for the Savings Account. According to the CSR, the savings account does earn a minimal amount of interest (currently 0.04% APY on all balances).

DIF Deposit Insurance

ZYNLO Bank offers more protection for large deposits through its Depositors Insurance Fund (DIF) membership. The DIF is a private, industry-sponsored insurance fund that insures all deposits above Federal Deposit Insurance Corporation (FDIC) limits at Massachusetts-chartered savings banks. The DIF has been insuring deposits since 1934.

Money Market Promotion - Expired

The promotion is no longer available as of 3/29/21.

ZYNLO Bank is currently offering a promotional rate for its Money Market Account. New customers who apply from this promotion landing page and who use the promo code “BANK” will earn a promotional rate (currently 1.25% APY on balances up to $250k). Balances above $250k earn only 0.10%. This promo may end at any time, and there’s no promo guarantee period. The period in which you’ll earn this promo rate may end at any time.

Note, the standard non-promo rate does not have the $250k balance cap according to the CSR.

If the promotional period lasts for three months and you maintain the maximum $250k balance, you’ll earn an extra $281 above the amount you would have earned from the non-promo rate (assuming the non-promo rate remains at 0.80%).

Availability

If you are going to apply for the Money Market Promotion, it must be done from this promotion landing page and the promo code “BANK” must be entered into the application.

If the promotion is over or if you do not want to participate in the promo, accounts can be opened from the ZYNLO Bank website or using the ZYNLO Bank app (link to the app download is located on the ZYNLO Bank homepage.)

One important FAQ describes who is eligible to open an account:

Any U.S. citizen 18 or older with a valid Taxpayer Identification Number. We can open accounts for people throughout the United States with the exception of CA, CT, MA, & NY.

The three Eastern states make sense since PeoplesBank has branches in Massachusetts and Connecticut which are close to New York. Banks often don’t want their online-only bank to attract existing brick-and-mortar customers to high-interest accounts. I’m not sure why California is included on this list. A reader mentioned that Lake Michigan Credit Union doesn’t accept new members from California because they do not comply with the California Consumer Privacy Act.

According to the CSR, applying for the ZYNLO Bank accounts does not incur a credit check (neither hard nor soft pull). Only ChexSystem is used.

Funding an account can be done by debit card (up to $500). Credit cards are not accepted. The funding can also be done with an ACH transfer after you go through the trial deposit verification step.

Beneficiaries and Account Ownership

Accounts can only be opened as either an “individual account” or “joint account.” According to the CSR, you cannot designate beneficiaries, and accounts cannot be opened in the name of a trust.

Bank Overview

As a digital-only division of PeoplesBank, ZYNLO Bank operates under PeopleBank’s FDIC Certificate and shares its financial history. Also, PeoplesBank and ZYNLO Bank are treated as the same entity for the purpose of calculating FDIC insurance limits and deposits.

ZYNLO Bank/PeoplesBank has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 4.30% (excellent) based on December 31, 2020 data. In the past year, the Bank increased its total non-brokered deposits by $545.88 million, an excellent annual growth rate of 29.21%. Please refer to our financial overview of ZYNLO Bank/PeoplesBank (FDIC Certificate # 90213) for more details.

ZYNLO Bank was launched in May 2020, but according to this press release, the banking services were only “offered to customers in Madison, Wisconsin and Anchorage, Alaska.” In the “about section” of the press release, the following information was provided:

ZYNLO is a digital-only bank designed to make banking just a bit easier for all of us. While we may seem "Brand New", ZYNLO is actually backed by PeoplesBank, with over 135 years of experience in creating satisfied customers.

[...]

PeoplesBank is a mutual bank and therefore responsible to our depositors, employees, and the community. This organizational structure allows us to focus on the long-term viability of the bank and the best interests of our customers. We currently have 20 banking centers located in Massachusetts and Connecticut.

One thing that has helped PeoplesBank is its mortgage business. Low rates have been very helpful in driving strong mortgage demand. In addition, PeoplesBank had been well positioned to do well during the pandemic as this news article described:

PeoplesBank launched its paperless mortgage-application system in October 2019 after two years of refining it. When COVID-19 arrived and disrupted so much of daily life, Sherbo said having a touchless system already up and running made it easier to maintain business levels.

PeoplesBank is a sizable bank with $3.35 billion in assets and $2.44 billion in deposits based on December 31, 2020 financial data.

How the ZYNLO Bank Money Market Rates Compare

When compared to Savings Accounts, Money Market Accounts and Checking Accounts that have no relationship/activity requirements or small balance limitations and are available nationwide, ZYNLO Money Market rates (promo and standard) rank very well.

The above rates are accurate as of 3/19/2021.

To search for the best liquid accounts, please refer to DepositAccounts.com’s rate tables for Savings Accounts, Money Market Accounts and Checking Accounts.

Related Pages: savings accounts, money market accounts, checking accounts, nationwide deals, Internet banks

Comments
midas89
  |     |   Comment #1
Thank you very much, Ken, for the thorough job you did reporting the details of this account, etc. Even though I am a California resident and thus not eligible to take advantage of this account, which I certainly would if I could, I always appreciate reading your postings on bank account offerings. You have been appreciated for many years now by so many.
111
  |     |   Comment #2
Regarding ZYNLO, the Massachusetts DIF insurance mentioned by Ken is a significant advantage to depositors. BTW, the 2.75% add-on CD from Bank5 Connect also benefits from that - unfortunately, these CDs are no longer available and in fact mature early this fall.

What some, including me, might consider curious is that a popular choice here on DA, Northern Bank Direct (with corporate HQ ostensibly in Woburn, MA), is NOT also under the aegis of the Massachusetts DIF insurance (at least, according to my inquiries re. about 6 months ago).
alan1
  |     |   Comment #3
Nothing "curious" re accounts at Northern not being covered under Massachusetts Depositors Insurance Fund (DIF), which provides "excess deposit insurance in Massachusetts-chartered savings and co-operative banks." (italics added)
See p. 8, col. 1 of PDF at https://www.difxs.com/reports/AnnualReports/DIFAnnualReport2019.pdf

Northern Bank & Trust Company of Woburn MA (a/k/a Northern Bank/Northern Bank Direct) is not such a bank. It is not a savings or co-operative bank.

You can go to https://services.oca.state.ma.us/LicenseeLookup/in-choose.asp and enter the bank's name. (The word "Direct" is not part of its name for these purposes.) And remember to enter appropriate terms in the "Charter Type" field.
111
  |     |   Comment #5
Alan1 - You and I most likely do not agree on much, but I do salute you for this clarification re. Northern.
I will still say, as indicated in my original post, that the Massachusetts DIF provision is an excellent additional benefit extension to the basic FDIC insurance coverage.
P_D
  |     |   Comment #7
Any point to have an NBD account anymore?  Haven't seen anything good there in a long time.  It's on my close account list.
111
  |     |   Comment #8
Well, not much - pays 0.50% on Money Market - no more rate guarantees. But on the other hand no monthly fees, and no low-balance fees - sort of blah...
enduser
  |     |   Comment #4
Not made clear in Kens review about the money market account is that this is a money market checking, but it behaves like a savings per the CSR I spoke with. When you link an external account the source bank will need to know that so that the link does not fail as it has happened to me a few times at Ally.

One thing that bothers me is the moronic dormancy policy. Apparently only activity initiated from within zynlo count as activity to keep the account from going into dormancy. I never link from the new bank to the source bank but I do it the other way around. In this case initiating a monthly $1.00 from the external bank to keep the account from going dormant will not work.

"There’s also a $10 monthly dormant fee that’s charged if your balance is under $2,500 and you have at least 12 months of inactivity. According to the CSR, automatic transactions (like ACH transactions initiated from an outside bank) do not qualify as an activity. Manual transactions like initiating an ACH transfer from ZYNLO qualifies as an activity."
P_D
  |     |   Comment #6
"There’s also a $10 monthly dormant fee that’s charged if your balance is under $2,500 and you have at least 12 months of inactivity. According to the CSR, automatic transactions (like ACH transactions initiated from an outside bank) do not qualify as an activity. Manual transactions like initiating an ACH transfer from ZYNLO qualifies as an activity."

I've never heard of that one before. I do a $0.01 ACH to or from all of my FIs once a year whether they have a dormant policy or not. It's a pain, but it's easier than keeping track of which ones have what policies. Only one has a 6 month dormant fee... ridiculous. So I do that one twice a year. But I've never seen one that requires initiation from the subject FI to avoid dormant fees. That's a tricky twist.

Other than that, this place seems like it may have some potential... and if not for the fact that it is not available in my state, I might find some use for it. Seems like it may be a good find for some people.
enduser
  |     |   Comment #17
P_D the most irritating part is that you must make those transactions manually in order for it to reset the dormancy clock. Not even from zynclo can you schedule a automatic push/pull to make it count as activity.

"Manual transactions like initiating an ACH transfer from ZYNLO qualifies as an activity"
keke2die4
  |     |   Comment #23
So enduser...Tell ALLY this is a Money Market Checking or Money Market Savings when linking? Nevermind, message from CSR states external link is "money market checking".
deskandchairs
  |     |   Comment #9
There is always one more thing. Only after going through the account application process, in the subsequent email confirming acceptance, one first learns that access to online banking (necessary to fund the account via ACH) is accomplished by entering an initial password that has been sent by TEXT. They can send acceptance and instructions on how to proceed by email, but not the password!
Well, it just so happens that I don't use text, it is just another irritant in life. I find that the telephone equipment I have on my land line is the best way to screen out unwanted communications.
Most financial institutions, in their two factor authentication routines, provided a choice on how to receive the authentication code. And while they differ, one choice, at least, is always voice or email. So, it appears the NYMBUS design failed again by not accommodating alternative communication modes. One less customer for ZYNLO is the result.
alan1
  |     |   Comment #10
Thank you, deskandchairs

from the NYMBUS website:
"Frictionless account opening. A fully digital banking experience that expedites the new account opening process across any device or channel."
https://www.nymbus.com/
midas89
  |     |   Comment #11
Google Voice is a free service that provides a phone number you can use for voice and text calls. If you could give their system a number in advance they can text, the system can send the code via text to your Google Voice number. You could simply be logged into Google Voice on your computer, and you can see the text messages, and send text messages, etc. You can even have your Google Voice calls forwarded to your home phone if you think someone is gonna call you, if desired. Once your account is set up, you can remove your Google Voice number from the bank's records, if desired.
kentchristopher
  |     |   Comment #13
Google Voice doesn't work for account sign-up - I know because I tried and spoke with a CSR about it. No VOIP numbers, no exceptions. One needs a "real" mobile number - at least for sign-up.

The unanswered question is whether one can switch to Google Voice or something else *after* sign-up. From what I see so far, changing your phone number online isn't even possible with the website. Can anyone with the app installed say whether it's an option in the account settings there? (I prefer avoiding apps unless truly necessary.)
Sylvia
  |     |   Comment #19
This could be their attempt to deter creation of fake accounts through phone verification, https://www.telesign.com/blog/8-ways-phone-verification-will-help-your-web-or-mobile-app. "Once you have a verified phone number tied to an end-user you have established their mobile device as a global trust anchor for secure access throughout the account lifecycle. A user's mobile phone is now an intelligent, connected identity device that can be used to confirm their identity for the lifetime of their account."
Choice
  |     |   Comment #20
Until one loses the device?
enduser
  |     |   Comment #22
You may loose the device but not the number. I once dropped my cell phone into the ocean from a dock, I dove in an got it but it was trashed by the salty water. The SIM card was not usable and trashed so I got a new phone and the number was transferred. I can still log in to all my accounts with the verification codes i receive without any issues. The phone was not the key it is the telephone number that is the gateway to getting access.
GreenDream
  |     |   Comment #26
And the ease with which you were able to transfer that number to a new device is one of the things that make it so insecure. SIM swapping scammers (pretending to be you) can just as easily convince your phone company to transfer that number to their device.
ttaylor
  |     |   Comment #24
Text messaging (SMS) can be easily intercepted:
https://krebsonsecurity.com/2021/03/can-we-stop-pretending-sms-is-secure-now/
deskandchairs
  |     |   Comment #25
Simplified explanation of one aspect of that article:
In a SIM swapping scam, criminals convince your mobile phone carrier that you lost your phone and you need to put your phone number onto a new SIM card they control. After they take over your phone number, they can go through the 'forgot password' process with your online accounts where they're able to receive authentication codes sent to your mobile number.

source: https://thefinancebuff.com/vanguard-2fa-yubikey-google-voice.html*4ac7d3e2-6b0f-44fe-9fd7-fbd80b3a9c7f***5f61a568-cab2-41d1-b432-c88445cac036**
hank
  |     |   Comment #12
I opened the money market account today quickly and easily. It took 5 minutes. They didn't ask for any kind of ID which is surprising and I thought it was required now. They said there is 30 days to fund the account. There is no limit on incoming or outgoing ACH if it is initiated by another financial institution. I was also told they the don't allow POD now but that may change.
deskandchairs
  |     |   Comment #15
For clarity: They (only) ask for your driver's license info and SS #, along with contact information.  Approval email arrived within minutes of submitting application
cook
  |     |   Comment #30
hank, you mention clearly that there is no limit on incoming or outgoing ACH if initiated by another FI.
Then, 2 comments below, me1004 quotes CSR as saying 'Incoming ACH $50K max per month ($250K with pre-approval), outgoing max $10K/day $25K/mo ($100K/mo max with pre-approval)'. Which do you now think is the policy? Thanks.
GreenDream
  |     |   Comment #31
Cook, most FIs, if they allow ACHes from other FIs, usually don't limit such other FI initiated transfer regardless of what limits they put on ACHes initiated from their own platform (basically it boils down to them only caring about the ACHes they're responsible for conducting, not ACHes other FIs are responsible for conducting, as those are the other FIs burden to sort out). 

The limits me1004 mention appear to be the limits on their transfers (IE incoming/outgoing transfers initiated from Zynlo Which, you'll note are the same limits mentioned in Ken's article under the bullet point "ACH transfers initiated at ZYNLO Bank "), not limits on transaction initiated from outside FI's (for example, from Ally), as you seem to be interpreting it (note that Ken's article doesn't mention any limits under the bullet point "ZYNLO Bank allows ACH transfer requests to originate from your other banks").
deskandchairs
  |     |   Comment #33
GreenDream: That is most likely the case. And in my experience with several other FIs, the customer service rep will just repeat the internal limits when asked. I have then proceed to initiate ACH transactions from outside to test the limits and never had a problem
hank
  |     |   Comment #34
the 50k max only applies if initiated by zynlo. If you initiate, for example, by Ally the max on incoming to zynlo is governed by the outgoing limit at Ally which I think is 150K
me1004
  |     |   Comment #14
One possibly important thing not mentioned that was mentioned in the forum is that there are daily and monthly limits on how much you can withdraw: maximum of $10,000 a day and $25,000 a month. So if you put a larger sum into this account, it might take you some time to get your money back, especially if you max it out, although it does note you can ask for preapprovel to get more - but they can say no. The info in the forum does not state whether that limit also applies to checkwriting.
JoseRod | Mar 18, 2021

Spoke with phone agent (844-996-5622), no wait time, she was friendly and knowledgeable. No wires in or out, everything ACH or mobile deposit. Incoming ACH $50K max per month ($250K with pre-approval), outgoing max $10K/day $25K/mo ($100K/mo max with pre-approval). Daily interest compounding, distributed monthly. Any cash bal over $250K gets 0.1% rate.
hank
  |     |   Comment #18
If you ACH your money out using Ally bank you can take out 150,000 per day. If you have 250K in the account , you can get it all out in 2 days
P_D
  |     |   Comment #21
Most FIs allow unlimited outgoing ACH transfers if initiated at another FI. I've heard talk about some that don't, but never encountered one myself. I'm not sure that is even permitted by regulation. And not sure about this FI, but some FIs that have relatively low limits on ACHs, still allow high or usually unlimited outgoing domestic wires. I sometimes have 7 figure amounts to move, so this is typically a relevant feature for me. Most FIs allow unlimited outgoing domestic wires. I only have one account at an FI now that does not, although it still allows $1.2m per day for outgoing domestic wires.

Of course with wires you usually have to pay a fee.  But when dealing with larger amounts, the fee is often less than the amount you will lose on the ACH float (...which is another topic... why should there be any float in 2021?  Transfers should be instantaneous.  This isn't 1960.  No wonder cryptocurrency is eating the treasury's lunch.).
IvoryMail
  |     |   Comment #16
Let's hope the online instantiation of Peoples is more ethical than the bricks and mortar counterpart

http://www.mclaughlinstern.com/news-and-press/press/mclaughlin-stern-appointed-as-co-lead-class-counsel-in-lachapelle-v-peoples/
Tracey
  |     |   Comment #27
I just opened an account. There are two ways to fund the account, "later" or with debit card. I chose the debit card option to fund from my Ally money market. The maximum is $2,500 for this method. It completed that transaction, and there is a button to return to website, which just takes you to the login page. I received an email telling me there are just a few more steps, and that I should send an email to a link. I sent it and am waiting. This is before business hours.
Update: I received an email saying they are reviewing my application.  I will receive another email with a secure link to upload some documents.  
NYCnative
  |     |   Comment #29
Anyone feel uncomfortable with no POD designation, especially with large deposit amounts?
BronxBoy
  |     |   Comment #32
You must have a cell phone to open this account. There is no work around to receiving a text message for your first logon.

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