Yesterday, VirtualBank began to promote a 2.36% APY on its eMoney Market Special account. This variable rate account can be opened with a $100 minimum deposit.
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.
DA readers may remember that VirtualBank introduced the eMoney Market in May, with a one-year guaranteed rate of 2.01% APY. According to CSR, if you opened a 2.01% APY eMoney Market, your account will automatically earn the new 2.36% APY, but the new rate is not guaranteed for any length of time. While the APY may change, the rate for an existing eMoney Market will never be lower than 2.01% APY during the one-year guarantee. No additional deposit is required for an existing eMoney Market account to earn 2.36% APY.
With no rate guarantee for the 2.36% APY, those who have existing eMoney Market accounts with the one-year rate guarantee will benefit the most from this new rate increase. The fine print on the eMoney Market landing page reads,
eMoney Market interest rates and APYs are variable, based on account balances, and subject to change daily without notice. Standard eMoney Market rates are disclosed on the Rates page.
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 above $250k. Caveat emptor, indeed.
VirtualBank launched a new Online Banking platform in early December. If you are an existing VirtualBank customer, the following applies to you.
BROWSERS: To have the best experience while using our new Online Banking platform, please be sure to download the latest version of one of these browsers: Chrome, Firefox, Microsoft Edge, or Safari. Internet Explorer no longer supports the minimum security measures required to keep your data safe when using our new Online Banking.
ALERTS: Clients using Online Banking alerts will need to reestablish alerts in the new Online Banking platform. After December 11, 2018 at 8AM ET, Online Banking clients will no longer receive alerts from the old Online Banking.
LOGIN: Your username and password will not change. There will be an initial multifactor authentication process when you log in for the first time. This is a security feature in place to help safeguard your account information.
VirtualBank’s website has also been revamped and reorganized quite nicely, except that the Live Chat feature (my favorite method of gathering information) is now only available for customers who are signed into their online banking accounts. The following Live Chat is from May 2018, but I confirmed the information is still correct in a phone call today.
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, QED, for the Forum post about the new eMoney Market rate.
VirtualBank is also offering fairly competitive rates on three of its eCDs, with the 12-month eCD (2.86% APY) having the best rate . All Virtual Bank eCDs require a minimum opening deposit of $10k, with no stated balance cap.
|2.80%||$10k||-||Virtual Bank||24 Month eCD|
|2.75%||$10k||-||Virtual Bank||12 Month eCD|
|2.50%||$10k||-||Virtual Bank||6 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 who maintain a U.S. residence and possess a valid Social Security number.
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 4.03% (excellent), based on September 30, 2018 data. In the past year, the Bank has increased its total non-brokered deposits by $2.02 billion, an excellent annual growth rate of 9.99%. 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 $30 billion and more than 450,000 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 184 Money Market Accounts tracked by DepositAccounts.com that are nationally available, Virtual Bank's eMoney Market Special APY currently ranks first, regardless of minimum balance requirements.
|Interest Rate||Account Name||Credit Union/Bank|
|2.36% APY||eMoney Market Special||Virtual Bank|
|2.35% APY||Smile Worcester County Consumer Money Market||Bay State Savings Bank|
|2.31% APY||Money Market Account||earn.bank|
To look for the best Money Market Account rates, either nationwide and state specific, please refer to our Money Market Account Rates Table page.
How the eCD Compares
When compared to 214 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.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|2.90% APY||1-Year CD ($1k min)||ableBanking|
|2.89% APY||Online 13-Month CD ($500 min)||MutualOne Bank|
|2.86% APY||12-Month eCD ($10k min)||VirtualBank|
The above rates are accurate as of 12/22/2018.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.