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Mobile Banking

Investors Bank eAccess Review: What Makes It One Of The Best Online Banks

There are so many amazing online banks out there. In fact, some of them you may not have heard yet. So, in this Investors Bank eAccess review, we are going to provide you key information on what makes this digital banking platform one of the (unnoticed) best choices in the industry.

Investors Bank eAccess Review: What Makes It One Of The Best Online Banks

The presence of technology has definitely changed the way banking is. Back in the day, people have to visit physical branches to make banking transactions like opening an account, depositing and withdrawing money, and more.

Today, thanks to digital technology, banking has never been so much easier and convenient. You can do whatever you want to do right at your fingertips.

While initially, digital banking attracted more of the younger generations (because obviously, they are the ones who are more tech-savvy), when the pandemic hit the world in 2020, people across all ages have relied so much on online banking.

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In fact, an article published by Forbes Advisor says that digital banking has become the new norm. Big banks and experts in the banking industry project the biggest acceleration of digital banking in history.

In the same article, Wells Fargo Securities analyst Mike Mayo told American Banker says that what took place during the peak of the pandemic in the United States may have taken place over two to 10 years if Covid-19 did not happen.

Meanwhile, in a PwC survey, it was found that because of the pandemic, about a quarter of consumers in the country prefer online banking to visit a physical location of their banks.

So, you see, the future of digital banking or online banking is absolutely bright. No doubt why banking institutions are working double-time to ensure they get to offer the best products and services possible to gain as many customers as possible.

Sure, there are already a lot of online banking platforms out there, but, as a customer, the route is to always choose the best option possible, which also has a lot.

One of the best options out there is the Investors Bank eAccess. It is the online division of one of the largest banks in New Jersey, Investor Bank.

As stated earlier, in this Investors Bank eAccess review, we are going to share with you some of the most important facts about this online banking platform – particularly, sharing with you why it is one of the best online banks out there.

In the next few sections, we are going to specifically tackle the following:

  • What is Investors Bank eAccess?
  • Who is Investors Bank eAccess best for?
  • What does Investors Bank eAccess offer?
  • How does Investors Bank eAccess work?
  • Are there fees involved?
  • How to bank with Investors Bank eAccess?
  • Is Investors Bank eAccess safe?
  • What to like about Investors Bank eAccess?
  • What not to like about Investors Bank eAccess?

WHAT IS INVESTORS BANK eACCESS?

Investors eAccess was established in early 2019. It is the online division of Investors Bank, which is one of the largest banking companies in New Jersey with $25 billion in assets.

Needless to say, the bank appeared on the “Best Bank in America” list of Forbes Magazine in 2013. More so, Investors Bank was also awarded four stars by Bankrate on their “Safe & Sound” rating system.

Founded in 1920s, Investors Bank was originally known as the Washington Rock Building and Loan Association of Millburn.

Investors Bank is based in Short Hills, New Jersey, and has branches throughout the state as well as in New York.

If you want to know more about the Investors Bank, check the video below:

Going back to Investors eAccess, it offers a selection of online banking products and services including checking accounts, money market accounts, and certificate of deposit accounts.

Furthermore, the online banking platform also provides access to several features such as electronic statements, online banking, mobile banking, and a lot more.

Although the bank’s parent company is physically present in New Jersey and New York only, the Investors eAccess serves customers nationwide allowing account holders to bank online and through their mobile devices.

Investors Bank eAccess is a member of the Federal Deposit Insurance Corporation (FDIC), which is “an independent agency of the United States government that protects the funds depositors place in banks and savings associations.”

Since Investors eAccess is insured by the FDIC, this means that all deposits can receive up to $250,000 per depositor, per account category in the event of a bank failure.

WHO IS INVESTORS BANK eACCESS BEST FOR?

Before we move on with our Investors Bank eAccess review, in this section, we are going to talk about who will benefit the most from this online banking platform.

As a potential customer, it is important to see to it that the bank or online bank for that matter that you are eyeing meets your banking needs and preferences.

Generally speaking, Investors eAccess is ideal for people who prefer online banking to traditional banking.

What does this mean?

Obviously, you must be the type of depositor or account holder who likes the accessibility and convenience that online banking gives. As you know, online banking provides access to your account anytime and anywhere as long as you have an internet connection and a mobile device where you can open and manage your account.

Furthermore, Investors eAccess should appeal to customers who want to take advantage of a higher annual percentage yield as compared to the average APY in the market.

Since Investors eAccess requires low minimum deposit requirements, this should also be great for those who cannot afford higher minimum deposit requirements.

Investors eAccess offers a no-penalty certificate of deposit (CD) account, which is ideal for cautious savers who value liquidity over the usual CDs offered by other banks that normally requires you to park your money for a while so it gets to earn the best rate possible.

Ultimately, Investors eAccess is also a good choice for those who also want to enjoy ATM rebates of up to $15.

If you think you are this type of customer, then, Investors eAccess is perfect for you.

WHAT DOES INVESTORS BANK eACCESS OFFER?

This review on Investors Bank eAccess provides you the most important details you need to know about its product offerings for you to better gauge if this online bank is right for you.

Investors eAccess offers three different accounts. These are as follows:

  • Checking Account
  • Certificate of Deposit (CD) Account
  • Money Market Account (MMA)

Now, let’s take a look at what each of these has to offer —

Checking Account

The first product that Investors Bank eAccess offers is a checking account. Similar to most checking accounts out there, this does not earn a yield. However, it does offer a range of features that customers can enjoy. This includes credit monitoring, bill pay, as well as the ability to link it to Apple Pay, Google Pay, and Samsung Pay. Additionally, Investors eAccess checking account holders are eligible for ATM rebates for up to $15 every month.

To open an Investors eAccess checking account, a minimum of $50 initial deposit is required.

The checking account comes with a monthly service fee of $10. However, this can be avoided if you are able to maintain a $1,000 average monthly balance, as well as meet any of the following requirements:

  • A direct deposit of $500 to your checking account during the statement cycle
  • Make combined mobile check deposits of at least $500 during your monthly account cycle
  • Make 10 point-of-sale transactions within your statement cycle

Certificate of Deposit (CD) Account

Investors Bank eAccess currently offers two short-term certificates of deposit (CD) account options. First is the six-month, no-penalty CD account, and second is the traditional 10-month CD account.

The no-penalty CD account allows account holders to withdraw their savings without having to pay a penalty or forfeiting any interest in the process. It’s actually an ideal choice for cautious savers or those who are not risk-takers financially. It is a good option for those who want to earn a decent yield but want to keep their money liquid.

With the no-penalty account, customers can make penalty-free withdrawals six days after opening the CD account. Withdrawals made before six days of opening the account entitles the account holder to pay for the seven days’ simple interest.

What’s nice about the two-CD account options is that they both offer a yield that is above the national average but below what other online banks that offers top-tier rates.

To open an Investors eAccess CD account, the bank requires a minimum initial deposit of $500.

Unfortunately, both accounts do not offer debit or ATM card access, as well as check-writing abilities. To withdraw money, it can only be done through ACH (pull) transfer.

Meanwhile, both types of CD accounts can be fully accessed through the bank’s website and mobile app.

Money Market Account (MMA)

If you are looking for the best APY for a money market account, Investors Bank eAccess is definitely one of the best ways to go.

With the Investors eAccess money market account, you can earn up to 0.75% APY. The APY is variable, though, which means it can change at any time.

And the good things about this account do not end there. With the eAccess MMA, you can open an account as low as $0!

If it’s not the best deal, we do not know what it is.

Anyway, it is important to know, however, that the account’s best yields are usually capped, and only apply to accounts with balances of up to $2 million. Balances that go over that amount won’t earn any interest.

Withdrawing money from your money market account can only be done through ACH electronic debits.

Additionally, take note that MMA account holders can only withdraw up to $250,000 per 30-day rolling month. This can be quite a challenge for account holders who want to move large sums of money.

All transactions for your Investors eAccess money market account can only be done online (and not in Investors Bank branches), including opening an account.

HOW DOES INVESTORS BANK eACCESS WORK?

As mentioned earlier, eAccess is Investors Bank’s digital division, which means, customers can access the online bank’s products and services entirely online – either via the website or the mobile app.

Unlike its parent company, the Investors eAccess only provides three products, which include checking accounts, money market accounts, and certificate of deposit accounts.

Apart from its product offerings, account holders may also take advantage of other digital banking features such as access to electronic statements, online banking, mobile banking, as well as mobile check deposit (as stated on the website’s FAQs, ” to protect against fraud you must endorse the check with the wording, “For Mobile Deposits Only” under your signature and include your account number“).

In addition, by opening an eAccess account, all existing accounts with Investors Bank will be automatically linked to it so you get to manage your accounts more efficiently.

ARE THERE FEES INVOLVED?

As part of our Investors Bank eAccess review, we are also going to look into the fees involved in the different accounts offered by the bank.

For both the money market and CD products, the bank does not charge monthly maintenance fees. Additionally, Investors eAccess money market account has no hidden fees.

Meanwhile, the six-month certificate of deposit (CD) account does not have penalties. Account holders can withdraw money from the CD, including the principal amount without incurring an early withdrawal fee and any other fees.

However, for the 10-month CD account, a penalty will be charged if the money is withdrawn prior to maturity. Account holders who will withdraw their money before the maturity date will be penalized based on 90-days simple interest against the total amount withdrawn.

As for the Investors eAccess checking account, a $10 monthly service fee is charged unless the account holder meets certain requirements to avoid the said fee.

HOW TO BANK WITH INVESTORS BANK eACCESS?

Accessing Investors Bank eAccess is entirely online, including opening an account.

As mentioned, the online bank offers checking, money market, and certificate of deposit accounts.

Whatever account type you choose, the eligibility and requirements are the same — except for the minimum initial deposit requirement.

To be able to open an eAccess account, you must be a citizen or a permanent resident of the United States of America and must be at least 18 years old.

You may open your account using either your computer, smartphone, or tablet.

To complete the account application process, the bank will ask you to provide personal information including:

  • Name
  • Phone Number
  • A physical U.S. address (PO Boxes are not eligible)
  • A valid email address
  • Social Security Number
  • Government Issued ID (Driver’s License, US Passport, Permanent Resident ID, or State Issued
  • Non-Drivers ID)

As soon as your application is approved, your account is immediately created. Initially, the account will be opened in eAccess system with a zero balance until the user completes the funding process.

For eAccess Money Market and checking accounts, account holders are given 35 days to complete the funding process. Meanwhile, the bank gives 15 days for CD accounts.

Please take note that Investors eAccess allows you to open more than one account. It does not have any limitations with regards to the number of accounts a user wishes to have.

Deposits and Withdrawals

As mentioned, eAccess allows mobile check deposits. ACH transfers are also available, particularly for withdrawals of funds for both the money market and certificate of deposit accounts.

Meanwhile, checking account holders may access cash through a debit card. Checking account holders enjoy unlimited free non-investor ATM transactions. Furthermore, the bank reimburses up to $15 per month for ATM fees charged by other ATM networks.

Customer Service

In case you need assistance with your account, you may reach Investors Bank eAccess Client Care Center at 855-422-6548.

A customer service representative is available from 8:00 a.m. to 10:00 p.m. ET (Monday through Friday), and 8:00 a.m. to 8:00 p.m. ET (Saturday through Sunday).

Furthermore, you may also contact them through the Contact page on the Investors eAccess website.

IS INVESTORS BANK eACCESS SAFE?

According to Investors eAccess, customers’ privacy and security are extremely important to the bank.

So, to protect your login credentials, the online bank uses 256-bit level encryption.

Furthermore, customers may opt to use the Instant Account Verification procedure for added security.

Meanwhile, as earlier mentioned, the bank is a member of the FDIC, which means all deposits are insured up to $250,000 per depositor, per account category in case the bank fails.

So, with all that’s been said, indeed, Investors Bank eAccess is safe.

WHAT TO LIKE ABOUT INVESTORS BANK eACCESS?

There are some features that Investors eAccess provides that really stand, and this includes the following:

  • Competitive APY for MMAs – Investors eAccess offers competitive rates for its money market accounts. Customers could earn up to 0.75%.
  • Low Minimum Initial Deposit Requirements – Whether you open a checking, money market, or certificate of deposit account, the bank requires a fairly low minimum initial deposit requirement as compared to what other banks of the same type require.
  • Offers up to $15 ATM Rebates for Checking Accounts – Investors eAccess reimburses ATM fees of up to $15 per month.
  • No-Penalty CD Account Option – Investors eAccess offers a no-penalty CD account option. For this CD account type, the bank does not charge early withdrawal fees should the account holder opt to withdraw the money six days after opening the account

WHAT NOT TO LIKE ABOUT INVESTORS BANK eACCESS?

To complete this Investors Bank eAccess review, we are also giving some of the downsides of the bank, which include the following:

  • No Branch or In-Network ATM Access – The eAccess is only accessible online. So, if you want to open an account with physical branch access, this is not the bank for you.
  • CD Rates are Not as Competitive – Unlike its money market account, eAccess CDs rates are not as competitive compared to what other banks in the market offer.

FINAL THOUGHTS ON INVESTORS BANK eACCESS REVIEW

Investors Bank eAccess is the online division of one of the largest banks in New Jersey, Investors Bank. It offers checking, money market, and certificate of deposit accounts with corresponding features that attract a particular group of customers.

But among all its product offerings, the one that really stands out because of its high rates is the bank’s money market account, which is why we highly recommend the bank for those who want to earn as much as 0.75% for MMA from an online bank.

So, having all this information, do you think Investors eAccess is the one you are looking for?

With this Investors Bank eAccess review we hope to have provided you everything you need to know to see if it meets your needs and preferences in an online bank.

Categories
Mobile Banking

MemoryBank Review: How Does It Provide Great Digital Banking Experience

If you are looking forward to having a great banking experience while in the comfort of your home or anywhere in the world (for as long as there is an internet connection, of course), then this MemoryBank review may just help you with that.

MemoryBank Review: How Does It Provide Great Digital Banking Experience

MemoryBank is an all-digital banking platform that aims just exactly that — making sure you can conveniently access your bank account and transact online — anytime, anywhere.

Just to give you a little backtrack –

As mentioned, MemoryBank is a digital bank. As defined in an article published by The Straits Times, “A digital bank offers banking services such as deposits, loans, debit and credit cards like a traditional bank, except that transactions are performed online and the bank does not have a physical branch.”

Over the years, especially since digital technology boomed, more digital banks have been established. Needless to say, a lot of people have found it more convenient and easier as compared to traditional banking.

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In fact, when the COVID-19 pandemic hit the world, particularly the United States, digital banks have won over more U.S. customers, according to a report by Reuters. Digital banks were so handy that customers were able to process a lot of their day-to-day banking transactions.

In the same article, Reuters highlighted that digital banks in the U.S. helped customers by “processing stimulus payments quickly,” which helped set apart online-only banks from traditional banks and at the same time, generate valuable word-of-mouth referrals.

You see, digital banks like MemoreBank, which is what we are going to review today have been really of great help, needless to say, very valuable to people especially during one of the world’s most challenging times.

As we have said earlier, there are lots of all-digital banking platforms in the country (and in the world in general), but, today, we are going to specifically do a MemoryBank review to hopefully help you see if this one’s a good choice for your day-to-day banking needs.

In this MemoryBank review, we are going to particularly focus on tackling the following:

  • What is MemoryBank?
  • Who is MemoryBank best for?
  • What are the products offered by MemoryBank?
  • How to do banking with MemoryBank?
  • Is MemoryBank safe?
  • What to like about MemoryBank?
  • What not to like about MemoryBank?

WHAT IS MEMORYBANK?

First of all, let get to know more about MemoryBank. As we always say, before jumping and dealing with a bank (or in any company for that matter), make sure to get to know about it first.

Know the history and what it offers so you can fully gauge if it’s perfect for you. So, with that said, here’s a quick briefer on what MemoryBank is all about.

MemoryBank, as compared to other well-established digital banks out there is relatively new. It has only been launched in the fall of 2016. However, although it’s considered a newbie in the digital banking market, MemoryBank is pretty sure about what they want for their customers — and that is, to provide them with a great banking experience wherever they may be.

By the way, if you want to know more about digital banking or what a digital bank is all about, check this video by Project Management:

Currently, MemoryBank offers two products to its customers: checking accounts and money market accounts. With its checking accounts, the bank features a headliner product called EarnMore Checking Account. Later on, we are going to share with you more about this product. Apart from checking accounts, the bank also offers Money Market accounts, which we are also giving you more details later on.

MemoreyBank, like most digital banks out there, operates solely online, which means a physical branch or location does not exist. It is, however, can be accessed using your mobile phone, tablet, laptop, or desktop computer.

MemoryBank is a division of Republic Bank & Trust. It is an FDIC-member and is headquartered in Louisville, Kentucky.

WHO IS MEMORYBANK BEST FOR?

Now that you already have a glimpse of what MemoryBank is, this time around, let’s talk about who is it best for. This way, you can easily assess if the bank is right for you.

As mentioned, MemoryBank is an online-only banking platform, which means you can access it through your mobile devices, laptop, or desktop computer. Thus, it is of common sense that the bank will appeal most to people who are always on the go or those who prefer reliable mobile banking to traditional banking. Unlike traditional banking, you do not need to visit a physical branch to do banking transactions — everything can be done online.

MemoryBank is also ideal for customers who want to avoid minimum balance requirements, earn competitive rates, and of course, open an account in a quick manner.

If you are particularly looking for checking accounts that earn interest, this might just be the bank you are looking for.

WHAT ARE THE PRODUCTS OFFERED BY MEMORYBANK?

In this part of our MemoryBank review, we are going to talk about the products offered by the bank.

As we have mentioned earlier, MemoryBank has two products — Checking Account and Money Market Account.

Now, let’s take a look at each of these products and see if it’s the one you are looking for.

Checking Account

Most digital banks offer checking accounts. But, one of the things that really make the MemoryBank EarnMore Checking account stand out from the rest is that it comes with an amazing interest rate.

Compared to its competitors, the MemoryBank EarnMore Checking Account pays a way better rate. In fact, it beats most savings accounts offered by national banks.

The MemoryBank EarnMore Checking Account pays an annual percentage rate of 0.05% on balances up to $250,000. What is nice about it is that the bank has no minimum balance requirements, monthly fees, as well as activity requirements.

To earn the best interest rate on your balance, though, you will need to meet a few requirements, which include:

  • Receive at least one direct deposit per statement
  • Make at least five debit card transactions per statement
  • Opt-in to online statements

Don’t worry, if you do not meet the above requirements, you will still earn a rate but it would be less than a tenth of the best available interest rate.

Meanwhile, other amazing features that come with this account include:

  • MemoryBank MasterCard debit card
  • Access to 92,00 surcharge-free ATMs
  • Allows you to write checks
  • 24/7 online banking
  • MemoryAlert balance and activity notifications
  • Live customer support

Furthermore, MemoryBank offers an overdraft protection program called Standard Overdraft Honor (SOH). This basically pays you a $100 overdraft protection limit for the first 30 calendar days after you have opened an account with the bank.

After the first 30 days, your SOH limit will be reviewed every business day and the pay will vary between $0 and $2,000 daily based on your account history. Should you go over your limit, you will be charged a $36 overdraft fee.

Money Market Account

Another product that MemoryBank offers is a Money Market account. This gives customers access to even higher interest rates while enjoying the same benefits.

As of this writing, MemoryBank offers a 0.50% annual percentage rate on balances up to $1 million. Meanwhile, balances that go beyond $1 million will receive an APY between 0.01% and 0.05%.

To open a Money Market Account with MemoryBank, you will need to deposit at least $50, which is a small amount as compared to the requirements of other banks of the same type.

While the amount required to open an account is low, it is important to note that you must maintain a daily balance of at least $1,000 to avoid being charged a Below Balance Fee, which amounts to $15. The fee applies to balances that drop below $1,000 at any point during the whole billing cycle.

The MemoryBank Money Market Account is not a typical money market account. The only exception would be the number of withdrawals you are allowed to make. According to FDIC rules, customers can only make six withdrawals per cycle. If you go beyond that, you may have to pay an “excessive withdrawal fee,” which amounts to $10 for every transaction.

Similar to the bank’s checking account, its Money Market Account does not charge a monthly service fee as well.

HOW TO DO BANKING WITH MEMORYBANK?

By this time, you have probably figured out already if MemoryBank is the right bank for you. Maybe, by now, you are already wondering how to actually open an account with them.

Well, in this part of our review on MemoryBank, we are going to tackle how to bank with MemoryBank.

Similar to other digital banks out there, MemoryBank’s application process is completed entirely online. You will need either a mobile device or a computer to do so. The application is easy that it can take as little as 10 minutes only.

To begin the application process, though, make sure to read the following requirements:

  • Social Security Number
  • Passport or State-Issued Identification Card
  • Home Address
  • Email Address

Head on to their website or download the app to proceed with the application process.

As to adding money to your account, you have the following options to do that:

  • Set up a direct deposit
  • Deposit checks using MemoryBank’s mobile deposit feature
  • Set up transfers from other banks or financial institutions

The same with most all-digital banking platforms out there, MemoryBank does not accept cash deposits. So, if you want an online bank that offers that feature, MemoryBank may not be right for you.

IS MEMORYBANK SAFE?

One of the hesitations that customers have when it comes to online-only banks is the security of their accounts.

Just like other digital banks, though, the security and safety of customer accounts is MemoryBank’s top priority. Thus, the bank ensures that it has put everything in place to avoid fraud and identity theft.

More than the standard web protection and encryption like SSL security, the bank allows you to set up biometric security to ensure that only you can log in to your account.

If you own a modern smartphone, you may also opt to set up a fingerprint login for your account. Also, you can eye-pattern identification to log in to your account for an extra layer of security.

Furthermore, MemoryBank is a Federal Deposit Insurance Corporation (FDIC) insured, which means customers need not worry about their money in the event of bank failure. FDIC will reimburse you up to the limit of $250,000.

WHAT TO LIKE ABOUT MEMORYBANK?

In the previous sections, we have already tackled most if not all of the important information every customer needs to know.

At this point of our MemoryBank review, we are going to provide you with a summary of the things that we particularly like about MemoryBank, and this includes the following:

  • Above-Average Interest Rates – MemoryBank offers an interest rate that is way better than its competitors. In fact, it beats most savings accounts offered by national banks.
  • No Monthly Fees – Unlike other digital banks, MemoryBank does not charge monthly maintenance or service fees.
  • No Minimum Account Balances (for Checking Accounts) – The bank does not require a minimum account balance. If you want to earn the best interest rate, though, all you need is to meet certain requirements set by the bank.
  • Open an Account Easily – The process of opening an account is so easy you can finish it in at least 10 minutes only!
  • MemoryBank MasterCard Debit Card – Opening a checking account comes with a MasterCard debit card that allows you to withdraw cash and purchase items using it.
  • Access to Over 92,000 Network ATMs – Withdraw cash anytime, anywhere as MemoryBank provides you access to over 92,000 network ATMs.
  • FDIC Insured – In case of bank failure, you need not worry because MemoryBank is FDIC insured, which means FDIC will reimburse you up to the limit of $250,000.
  • 24/7 Access to Your Account – Since MemoryBank is an all-digital banking platform, you get to access your account and do bank transactions anytime, anywhere.
  • Earn Purchase Rewards – Whether you are using the mobile app or the website, you can enable some offers that are available to your account to get yourself some cashback.
  • Alert Notifications – MemoryBank allows you to set up various alerts for your accounts such as deposits, transactions of a certain amount, and alerts for a low balance threshold.
  • Free Online Statement – MemoryBank provides free online statements for up to 18 months.
  • Mobile Check Deposit – The bank allows you to deposit your checks on the mobile app wherever you may be.
  • Powerful Security Features – As mentioned earlier, MemoryBank provides not just standard web protection and encryption, but that also allows users to set up biometric security. Those with modern smartphones may also set up fingerprint login, as well as eye-pattern identification to log in to your account.

WHAT NOT TO LIKE ABOUT MEMORYBANK?

In the last section, we provided you with a list of advantages of MemoryBank. But as the saying goes, nothing is perfect. So, while we have listed a lot of things to like about MemoryBank, we also have found some disadvantages.

Some of the downsides/downfalls of MemoryBank include:

  • Limited Products and Services – Unlike other digital banks out there, MemoryBank only offers Checking and Money Market accounts only, which means if you are looking for other products like a Certificate of Deposit or Savings Account, you may opt for another bank instead.
  • No Physical Branches Available – Since MemoryBank is an all-digital banking platform, it obviously does not come with a physical branch or location. So, if you prefer in-person banking, MemoryBank is definitely not for you.
  • No Business Account Option – As mentioned earlier, MemoryBank has very limited products and services offered – and a business account is definitely one of them. Try other banks instead if you want to open a business account.
  • No Cash Deposits – Another downside of MemoryBank is that it does not offer cash deposits. Again, if you want a bank that allows cash deposits, this bank is ultimately not the one for you.
  • Withdrawal Limits and Restrictions (for Money Market Account) – MemoryBank’s Money Market Account does have withdrawal limits for up to six only per cycle. If you go beyond that, you may have to pay an “excessive withdrawal fee,” amounting to $10 for every transaction. Also, as stated earlier, you must maintain a daily balance of at least $1,000. Otherwise, you will be charged a Below Balance Fee, which amounts to $15. The fee applies to balances that drop below $1,000 at any point during the whole billing cycle.

FINAL THOUGHTS ON MEMORYBANK REVIEW

There are a lot of digital banks out there and MemoryBank is one of them. Although relatively new in the market, having launched only in 2016, the bank promise to give customers a great online banking experience.

Obviously, the bank offers a lot of amazing features, one of them and the most notable of all is providing a great interest rate for both its checking and money market accounts. In fact, the rates are very competitive as compared to what national banks offer.

Although it comes with lots of benefits, it does sure have its share of downsides – one of them is not having lots of product options.

Nevertheless, overall, we have to say that MemoryBank is a great choice for people who wanted all the featured it has to offer while earning a great rate.

To end, we hope that this MemoryBank review has provided you not just essential information you need to know as a potential customer, as well as how the bank offers a great banking experience, but that it also gives you the clarity you need to determine if it’s the suitable digital bank for you or not.

Categories
Investment Apps and Websites

5 Major Types Of Bank Accounts To Choose From

There are different types of bank accounts out there to choose from. Each offers features that match the needs and preferences of certain customers.

different types of bank accounts to choose from

If you haven’t known yet, as a potential bank customer or a bank customer (if you are at the moment), it is important that you are fully aware of the various types of bank accounts. This way, you get to choose the one that fits best based on your needs.

Knowing the different bank account types will also help you maximize the product to its full potential.

For instance, knowing your options will help you find out which bank account has the highest interest rate.

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All About Checking Accounts: A Customer’s Guide
11 Best Online Savings Accounts In 2020
9 Advantages Of Online Banking That Will Change The Way You See It

In an article published by GO Banking Rates, it says that unfortunately, “one-third of Americans do not know what type of bank account usually has the highest interest rate,” which we find is the very reason why you need to know not just what these bank accounts are all about, but also what you can get out of each of them.

So, having said that, we are going to particularly talk about the following types of bank accounts, and the important things you need to know about each type:

  • Savings accounts
  • Checking accounts
  • Money market accounts
  • Certificates of deposit (CDs)
  • Retirement accounts or Individual retirement arrangement (IRA)

AT GLANCE

Before we look into each of the accounts mentioned above, here’s a quick glance about each of them for your reference:

Type of Account Why Choose It
Savings accounts You do not need to access the money frequently. You can leave it securely, at the same time, you get to earn nominal interest from it.
Checking accounts It’s ideal for people who want unlimited access to their money. It’s also good for those who do not mind not earning interest.
Money market accounts This one’s ideal for people who want a blend between savings and checking accounts. This allows limited access to your funds in a month.
Certificates of deposit (CDs) This type of bank account is best for those who want a secure way to invest their money for a particular period of time.
Retirement accounts This one’s a tax-deductible or tax-deferred way to invest money for your retirement in the future.

If you want to know the different types of bank accounts to choose from, here’s an informative video resource from Joyful Investor. Click the play button to watch the whole thing:

So, now that you already have an idea about each of the five major types of bank accounts available in banks today, let’s proceed to get to know more about each bank account type.

SAVINGS ACCOUNTS

Savings accounts are popular with those who want to earn a certain amount of interest from their money in the bank. More so, most consumers use this particular type of bank account to save money up for future use.

What we like about savings accounts is the fact that your money is secured, (as mentioned earlier) you do not need to access it regularly, and of course, it earns. Your money grows over time.

Normally, savings accounts are the first official bank account that people get for themselves — which is not surprising because ultimately, apart from keeping our money safe in the bank, we wanted to grow our money as well (no matter how small or big the APY is).

Opening a savings account is not only ideal for adults but for children as well. Usually, the bank allows kids to open a savings account with a parent. Doing so helps the child establish a pattern of saving — and also it’s a good way to teach children the value of money.

Just the same teens can also open accounts to stash cash from their first job or household chores, and eventually, manage money while in school or in college.

Opening a savings account also marks the start of your relationship with a bank just like when joining a credit union wherein your “share” establishes your membership in the organization.

As mentioned earlier, having a savings account is an excellent way to park cash for financial goals or for emergency purposes. It’s one way to keep money separated from the funds you use on your day-to-day expenses.

HOW TO OPEN A SAVINGS ACCOUNT

Generally, opening a savings account should take less than an hour. Once the accounts are opened, it will serve you for many years to come.

While you can go visit a branch of the bank of your choice, you can also open an account online using either your mobile device or your laptop.

To formally open an account, the bank will require you to fill up certain bank forms, and you will need to provide personal information like your name, address, contact number, as well as your Social Security number and identification cards will also be requested to confirm your identity.

Furthermore, the account holder must be 18 years old and above, otherwise, a parent or guardian needs to open an account with you.

TIPS WHEN OPENING A SAVINGS ACCOUNT

When opening a savings account, make sure to do the following first:

  • Compare banks based on fees, interest rates, minimum balance requirements, minimum opening deposit requirements, and more.
  • Check the requirements set by the bank when opening a savings account.
  • Choose the bank that meets your personal needs as a consumer. Opt for an account that is easy to use, and that you will get to put money into easily.
  • Gather all the information and documents you need to open a savings account.
  • Go to the bank open an account, or you may opt to open an account online if the bank you are eyeing for permits it.
  • Fund the account with an initial deposit if the bank requires it (though even if now, we highly recommend you put money in there as soon as you open one).

WHAT TO LIKE: Savings account is ideal for kids, teens, and/or adults who are looking for a place to keep their money, at the same time, earn interest over time. It’s ideal for those who want to stay away from getting tempted to using their money.

WHAT NOT TO LIKE: Generally speaking, savings accounts yield a lower interest rate as compared to CDs and money markets. Also, unlike checking accounts, they do not normally come with a debit card that can be used to make purchases. Furthermore, banks have limited consumers to no more than six withdrawals a month for this particular bank account type.

CHECKING ACCOUNTS

Among all the types of bank accounts in our list, checking accounts is the only type of account that does not provide your money a place to grow.

What do we mean by that? Here —

Checking accounts are designed to use for everyday spending. It comes with a linked debit card that you can use for making purchases, for ATM withdrawals, as well as for check-writing abilities.

Moreover, checking accounts let you deposit cash and/or checks, and it also allows you to pay bills. In recent years, more and more banks offer online bill-pay services. Thanks to technological advancement and the internet.

Unlike savings accounts, checking accounts normally do not earn interest. Although there are banks that offer interest-bearing checking accounts wherein you can get extra interest on top of what you get from your savings account.

Having a checking account is ideal for keeping cash for short-term use. It is also ideal to help manage your monthly cash flow.

HOW TO OPEN A CHECKING ACCOUNT

Just like when opening a savings account, you can either go to the branch of the bank you are eyeing for, or you can opt to open an account online.

You will also need to provide identifying information such as:

  • A government-issued ID with your picture
  • The second form of ID like a birth certificate
  • An identification number, which normally is your Social Security number or passport number

An initial deposit is also usually required. The amount usually goes between $25 and $100. Unlike savings accounts, most banks do not open checking accounts for minors, which means you need to be 18 years old and above to be able to open a checking account.

Opening a checking account does not take long, too. It usually lasts for just a couple of minutes when opening online, or less than an hour when opening in person.

TIPS WHEN OPENING A CHECKING ACCOUNT

When opening a checking account, make sure to do the following first:

  • Compare banks based on fees, interest rates (if available), minimum balance requirements, minimum opening deposit requirements, and others.
  • Check the requirements set by the bank for checking accounts.
  • Choose the bank that meets your personal needs and preferences.
  • Gather all the information and documents you need to open a checking account.
  • Go to the bank open an account in person, or you may opt to open an account online if available.
  • Fund the account with an initial deposit as required.

Furthermore, also keep in mind the following:

  • Make sure to balance your checking account regularly — ideally every month or every banking statement. This helps you manage your cash inflows and outflows, and avoid fees and errors, and allows you to spot fraudulent acts (if there’s any).
  • Set up a direct deposit of your wages into your checking account.

WHAT TO LIKE: It’s ideal for anyone who needs a place to deposit cash or paycheck, as well as make payments. It’s also a good option for those who keep a relatively small balance, and those who enjoy using a debit card for purchases.

WHAT NOT TO LIKE: It does not offer interest rate, and are usually subject to a lot of fees and restrictions like maintenance fees as well as minimum balance requirements, which can get quite pricey.

MONEY MARKET ACCOUNTS

As stated earlier, money market accounts are a combination of features provided by both savings and checking accounts. It’s like enjoying the best of both worlds.

Anyway, unlike checking accounts, money market accounts offer limited check-writing privileges. It collects interest at higher rates as compared to savings and interest-bearing checking accounts.

With these features, it makes money market accounts useful for both short-term and long-term needs.

To put it simply, money market accounts are ideal for those who tend to carry big balances in their checking accounts, at the same time, enjoy the ability to earn more interest and write checks.

HOW TO OPEN A MONEY MARKET ACCOUNT

The process varies depending on where you open your money market account, but here are some of the common processes:

  • You will need to submit an application wherein you will need to provide personal information like your name, date of birth, taxpayer identification number/Social Security number, mother’s maiden name, address, employment status, and income.
  • You will be asked to decide whether you want to add a joint owner or not, add a beneficiary or not, receive checks to use with your account, and how much you want to deposit or transfer into your money market account.
  • You will be asked to complete any verification requirements like submitting or uploading copies of your identification or income-related documents. This is to confirm the validity of the information you provided during the application.
  • You will have to fund your money market account based on the minimum funding requirement of the bank.

TIPS WHEN OPENING A MONEY MARKET ACCOUNT

Before you even sign an application for a money market account, you may also consider the checking the following first:

  • The account’s annual percentage yield of APY, which refers to the interest you will earn on your savings.
  • The minimum balance requirement, and the fees that come with it in the event of failure to meet the required balance.
  • Your withdrawal options — if the funds can be accessed through ATM, debit card, or check.
  • Account fees, which include not meeting the minimum balance requirement, withdrawing money at affiliated ATMs, check writing, and excessive withdrawals. It may also include fees for bank checks, stop payments and wire transfers.

WHAT TO LIKE: Money market accounts are ideal for those who want to hold high balances in their account, at the same time want to enjoy higher interest rates.

WHAT NOT TO LIKE: Generally, money market accounts tend to have higher minimum balance requirements as compared to other types of bank accounts. Also, interest rates tend to be low sometimes. Needless to say, you need to watch out for fees. Withdrawals are also permitted six times a month only for savings accounts.

CERTIFICATES OF DEPOSIT (CDs)

Certificates of Deposit (CDs) are comparable to savings accounts except that CDs hold your money for a fixed term, which usually lasts from three months up to five or more years depending on the financial institution.

Unlike the other types of bank accounts, CDs let you earn more interest-wise. However, you will need to commit to keeping your money for the full term or you will get penalized for early withdrawal of funds.

CDs are ideal for people who want to save for financial goals with a particular end date. For instance, if you are aiming to buy a property in a year, then a CD would be ideal so you get to keep your money and let it grow until the time you already need it.

Definitely, CDs are not ideal for emergency funding.

HOW TO START USING CDs

To start using CDs, all you need to do is to get in touch with your bank or credit union. Generally, banks explain your options and even allow you to make CD investments online.

If talking to a banker in person is not feasible, you may also consider calling the bank’s customer service.

When talking to a bank representative, make sure to explain how much you’d like to invest, and also, ask about penalties and other alternative CD products they offer. Who knows, they might have a better CD option for you. The bank may also offer higher rates, more flexibility, and/or other beneficial features.

When staring a CD, make sure to only stick with those insured through the Federal Deposit Insurance Corporation or the National Credit Union Administration for safety purposes.

TIPS WHEN USING CDs

When considering opening CDs, keep in mind the following tips:

  • Consider setting up a CD ladder especially if you are concerned about locking up all your money. A CD ladder makes a portion of your savings available periodically.
  • Look for banks that offer flexible CD terms. Ideally, a bank that gives you the option to withdraw money early sans charging a fee.

WHAT TO LIKE: Lets the money that you do not need to spend right away grow. It gives you the option to either keep the money on CD accounts for a short-term or long-term period.

WHAT NOT TO LIKE: Withdrawing your money early comes with a penalty, which may cost a lot.

RETIREMENT ACCOUNTS

Last but not the least type of bank account are the retirement accounts or popularly known as the Individual Retirement Arrangements (IRAs).

Obviously, this particular account is intended for people saving up for their retirement.

One day we are all going to retire, and we’ll need money to spend on our needs (wants) by then. So, the best time to prepare for retirement is not later than now.

Just to be clear, although IRAs are the most common ones, there are also other retirement accounts out there, which include 401(k) accounts and other retirement accounts for small businesses.

Most of these accounts offer tax advantages. For instance, both IRAs and 401(k) plans keep you from paying income tax on the growth of your contributions each year. However, you will have to pay taxes at certain points depending on the type of account you have.

While traditional IRA and 401(k) contributions reduce your taxes now, once you withdraw, later on, you will have to pay taxes. Meanwhile, contributions to a Roth IRA do not reduce your taxes at the moment, but you will not have to worry about paying taxes on withdrawals later on.

You see, it’s just about picking the right choice for you.

The different retirement accounts we mentioned are the best types for saving for retirement as they allow you to invest your money in the stock market creating the potential to earn greater returns.

HOW TO OPEN A RETIREMENT ACCOUNT

Opening a retirement account vary depending on the financial institution where you will open one, and of course, the type of account.

Generally speaking, however, opening an account is pretty easy. All you need to do is head on to the financial institution’s website, choose the type of retirement account you want to open, and then fill in some personal details, which include your Social Security number, name, date of birth, contact information, as well as your employment information.

In addition, make sure to keep your money handy because you will need to fund the account once you open one.

TIPS WHEN OPENING A RETIREMENT ACCOUNT

When opening a retirement account, make sure to:

  • Speak to a financial advisor and get help with regards to planning how much to save for your retirement account, and also the type of account and investments that are ideal for you.
  • Check if your company is offering 401(k). If yes, consider contributing enough to get the match before you start putting money into your retirement account.

WHAT TO LIKE: This particular account is ideal for those who want to save money for their future. More so, retirement accounts might result in larger account balances over time.

WHAT NOT TO LIKE: For whatever tax benefit you get comes to a string attached. That is why it’s best to consult with experts first before opening one.

FINAL THOUGHTS ON TYPES OF BANK ACCOUNTS

You see, there are a lot of bank account choices – and choosing one will definitely depend on your financial goals.

To be able to determine the right bank account type for you, the best way to do it is to consult with a bank representative or if you have a financial advisor, then you may check with him or her as well.

So, have you found the best type of bank account for you yet?

Remember that while there are many types of bank accounts out there to choose from, it all boils down to your needs and preferences as a consumer. That’s definitely a big deciding factor.