In this review, we’ll cover:
VirtualBank CD rates
Term | APY |
|---|---|
1 Month | 0.65% |
2 Months | 0.65% |
3 Months | 0.65% |
6 Months | 0.81% |
9 Months | 1.01% |
12 Months | 0.91% |
18 Months | 0.96% |
24 Months | 1.05% |
36 Months | 1.05% |
48 Months | 1.01% |
60 Months | 1.01% |
- Minimum opening deposit: $10,000
- Minimum balance amount to earn APY: $10,000
- Early withdrawal penalty:
- Penalty depends on the terms of CD
- Longer terms have higher penalty rates
VirtualBank’s eCD is a more traditional certificate of deposit (CD) that features a fixed term and interest rate until maturity. The CD term can be as short as one month or as long as 60 months with varying APYs. To get the highest rate, you’ll need a minimum opening deposit of $10,000, which is considerably higher than rates of competitors.
What is also interesting about VirtualBank’s CD page is that all its CD APYs are listed as the sum of what you would earn for the entire year, not necessarily just for the CD term. Keep this in mind while searching the page.
The eCD has an early withdrawal penalty, which is typical of CDs. The penalty depends on the terms of your CD, but usually longer terms have higher penalty interest rates. If you withdraw money from your eCD before the CD matures, you will lose the interest earned for the amount withdrawn. All of VirtualBank’s CDs are set to automatically renew, and can credit the amount back to your account or replenish your existing account with your earned interest and principal.
How to get VirtualBank’s CDs
If you want to open a CD with VirtualBank, you will need to apply through the VirtualBank website or download the PDF application. You will need to provide basic details about yourself, such as name, address, phone number, etc., as well as details about the CD you would like to open, including the term and the minimum deposit.
You can open an account with a transfer from an internal (VirtualBank) checking or savings account, or by mailing a personal check to the bank.
How VirtualBank’s CD rates compare
VirtualBank offers relatively high CD APYs compared to other best CD options. This makes them desirable, but the barrier to entry is high, which is a major disadvantage. A $10,000 minimum deposit to five or more times higher than the requirement at banks that offer similar rates. If you have less than $10,000 to invest in a CD, this option isn’t worth consideration simply because it isn’t possible.
VirtualBank’s money market account options
VirtualBank offers two money market accounts: the eMoney Market and the Jumbo eMoney Market. Each account has different requirements and benefits.
eMoney Market account
APY | Minimum Opening Deposit |
|---|---|
0.80% | $100 |
- Minimum opening deposit: $100
- Monthly account maintenance fee: $5
VirtualBank’s rate isn’t as high as you can get elsewhere, but it can be a solid money market account to round out your portfolio. It offers a strong (but variable) APY regardless of how much money you deposit in the account. However, you will need to deposit a minimum of $100 to open.
Working in the account’s favor are its competitive APY and low minimum deposit amount. Despite these advantages, the monthly maintenance fee can be a hindrance to returns. However, maintaining the minimum daily balance of $100 to get the fee waived shouldn’t be hard for most savers.
A money market account is a good option for someone who doesn’t need to make more than six withdrawals per month, as per Federal Regulation D. Federal law mandates certain types of telephone and electronic withdrawals, including transfers from savings accounts up to 6 per statement cycle. If you make more than what Federal Law mandates, you’ll be charged an excessive withdrawal fee of $15 for each transaction. If you regularly withdraw from your account or transfer more than six times per month, your account could be converted to a checking account or closed at the bank’s discretion.
This account does not come with an ATM card, so if you want ATM access you will need to first transfer money from your eMoney Market account to an account that does have ATM access. The overdraft fees are something to always keep in the back of your head if you want to preserve your returns.
How to get VirtualBank’s eMoney Market account
If you want to apply for VirtualBank’s eMoney Market account, you’ll need to visit the website. The application will require your personal information, minimum opening deposit and funding source. You can also mail in an application, but be aware you can only open this account with a personal check or transfer from an internal account.
Jumbo eMoney Market account
| Checking Accounts | Savings Accounts |
|---|---|
| Main purpose | |
| Routine deposits and withdrawals, used to meet day-to-day cash needs | To save money for the future and earn interest on the balance, minimal access |
| Withdrawal limits | |
| Unlimited withdrawals* | 6 convenient withdrawals per month |
| Interest earned | |
| Average APY of 0.06% as of February 2020 — much higher rates are available if you shop around. | Average APY of 0.09% as of February 2020 — much higher rates are available if you shop around. |
| Minimum balance requirements | |
| Generally zero, but some accounts may require a minimum balance to avoid fees | From $100 to as much as $2,500. A few accounts can require much more. |
| Common features | |
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| Fees | |
| There may be fees for monthly maintenance, overdrafts, paper statements, inactivity, returned items, card replacements, account closure, international withdrawals, third-party ATM withdrawals | Seldom charge fees, although some accounts will charge you if you fall below a required minimum balance |
- Minimum opening deposit: $100
- Monthly account maintenance fee: $5
If you’re going to park a big chunk of cash into a money market account, you can arguably do better than VirtualBank’s Jumbo eMoney Market account. There are other accounts that offer higher APYs without such a high minimum balance requirement. To achieve even a halfway decent APY at VirtualBank, you’ll need to pony up a quarter-million dollars, which is a steep requirement considering the low yield.
If you plan to have less than $250,000 in your money market account, the eMoney Market will give you a higher APY than the Jumbo eMoney Market account. Also, remember that a money market account is a good option only if you don’t need frequent access to your funds.
This account also does not come with an ATM card, so if you want ATM access you will need to first transfer money from your Jumbo eMoney Market account to an account that does have ATM access. Also, be careful when withdrawing from your account because you will be charged a $35 overdraft fee if your balance goes below zero.
How to get VirtualBank’s Jumbo eMoney Market account
If you want to apply for this account, you’ll need to go to the bank’s website. The application will require your personal information, minimum opening deposit and a funding source. You can fill out the online application there, or mail in a physical copy with either a personal check or the details of your internal bank account from which you would transfer the funds.
How VirtualBank’s money market accounts compare
VirtualBank’s money market accounts are OK, but they’re not stellar. There are other money market accounts offering higher APYs with lower requirements to meet. Even if you have enough to qualify for the Jumbo eMoney Market account’s highest rate, you can find higher rates elsewhere that don’t require such a sizeable commitment.
Overall review of VirtualBank’s banking products
VirtualBank offers decent banking products, but they aren’t blockbusters. Regardless of the product offered by VirtualBank, there are better options out there that offer higher APYs and with lower minimum requirements.
