MyBankingDirect surfaced towards the end of the rate boom. In 2006, this online bank was offering a rate of 5.10% annual percentage yield on balances of $5,000 and more. Rates started to drop in 2007 and remained lower than many of the big rate competitors. The low rate and the high balance of $5,000 required to earn it, made MyBankingDirect an unappealing choice.
But now that those competitors have either dropped their rates or just outright failed, MyBankingDirect once again offers a good rate option to savers.
Be Aware of the Transfer Fees
Before you get excited about this account, you need to know about an important feature that this account has that is unusual in the world of Online Savings Accounts - a fee for transferring funds. MyBankingDirect uses a system called Money HQ and in order for you to use it to electronically transfer your money, you will need to pay a monthly service fee of $4.95. That fee allows you to make five transfers per month. Any transfers made above five will result in an additional fee of $1.50.
There is a way to get around the fee. If you have an account at another bank that allows you to transfer money using their system, then you can use it to push money into MyBankingDirect or out of it and MyBankingDirect will not charge you a fee.
MyBankingDirect is the online division of New York Community Bank. The Earn>More Money Market Account can be opened with a minimum initial deposit of $5,000. A minimum balance fee will be imposed every month if the average daily balance for the month falls below $1,000.00.
Earn>More Money Market Rates
|$0.00 - $4,999
Rates as of 6-28-11. $5,000 minimum deposit required to open. $1,000 minimum average daily balance required to avoid a monthly fee. APY = Annual Percentage Yield