Competitive four-tiered money market rates offered by First Internet Bank
First Internet Bank continues to offer high money market rates in their money market savings account. What makes their scheme competitive, aside from the high yields, is the low minimum deposit requirement.
You only need to deposit $100 to open this account. As we’ve said earlier, the yields of this account are divided into four tiers or brackets. Daily balances of $250,000 and above gains 2.75% APY; $100,000.00 to $249,999.99 gains 2.50% APY; $50,000.00 to $99,999.99 gains 2.25% APY; and $100 to $49,999.99 gains 2.00% APY.
This scheme is obviously designed to encourage depositors to maintain bigger balances. While this money market rates scheme makes it highly competitive as an MMA for medium to large depositors, other banks could offer higher yields for balances of at least $1,500.
Like other MMAs, this money market savings account is also subjected to FDIC regulations. For example, depositors are only allows 6 electronic and telephonic transfers, automatic transfers, pre-authorized withdrawals, and check transactions within 30 banking days. Of this six, only three checking privileges are allowed within the month.
Exceeding withdrawals are subject to bank fees, which will be deducted from your funds. A $5.00 penalty fee per item will be deducted from your savings account every time you go beyond the withdrawal limit.
Money market rates change very frequently, and the data on the website was last updated on January 16, 2009. It’s best for you to call up their 24-hour banking hotline to make sure that these rates still apply.
Online application is available in this bank, although a branch visit is still recommended. In the website, you will be taken through a series of steps to complete your online application. However, as in other banks, your application will have to be approved first.
Make sure that you have proofs of your identity and residential address ready: driver’s license, utility bills, etc. You can either have these scanned and emailed, or faxed to the bank for verification.
Another downside to this money market account is the bank’s soundness. First Internet Bank of Indiana scored only 3 stars (performing) in Bankrate.com.
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