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Review of VirtualBank CD Rates and Money Market Accounts

Editorial Note: The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Year Established1887
Total Assets$29.4B
LEARN MORE on Virtual Bank’s secure website
VirtualBank has been a division of IBERIABANK since July 31, 2017 when it was sold by Banco de Sabadell. IBERIABANK was founded in 1887 in New Iberia, La., and has a presence across the southeastern U.S. VirtualBank is an online-only bank. Internet banks are growing in popularity as their low overhead costs allow them to offer higher rates and lower fees to consumers than traditional brick-and-mortar institutions.

Although VirtualBank’s rates are higher than those offered by traditional brick-and-mortar banks, we found they don’t stack up against better offerings from other online banks. Not only are their rates lackluster but they they also make it harder to get the best deals by requiring higher minimum opening deposits and average daily balances in order to obtain their highest rates.

This VirtualBank review will cover their eCD, eMoney Market and Jumbo eMoney Market accounts, including features, interest rates, and which accounts may be the best option for you.
Virtual Bank’s Most Popular Accounts

APY

Account Type

Account Name

Compare Rates from Similar Accounts

0.80%

Savings

Virtual Bank eMoneyMarket

1.80%

Goldman Sachs Bank USA High-yield Online Savings Account

on Goldman Sachs Bank USA’s secure website

2.35%

CD Rates

Virtual Bank 12 Month eCD

2.25%

Barclays 12 Month Online CD

on Barclays’s secure website

1.66%

CD Rates

Virtual Bank 36 Month eCD

2.50%

Ally Bank High Yield 3 Year CD

on Ally Bank’s secure website

2.65%

CD Rates

Virtual Bank 60 Month eCD

2.85%

Barclays 60 Month Online CD

on Barclays’s secure website

VirtualBank CD rates

VirtualBank offers guaranteed returns on their CDs, but you’ll need at least a $10,000 minimum deposit in order to open one.

Term

APY

1 Month

0.15%

2 Month

0.15%

3 Month

0.82%

6 Month

1.56%

9 Month

2.05%

12 Month

2.35%

18 Month

1.57%

24 Month

2.55%

36 Month

1.66%

48 Month

1.79%

60 Month

2.65%

As of 6/8/2018

  • 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 interest rates

VirtualBank’s eCD is a more traditional 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.

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.

CDs are similar to a savings account, but offer higher, fixed rates of return in exchange for a fixed investment term. These are generally a good option for investors who are looking for a relatively short-term way to grow their money with a guaranteed rate of return over a specified time period, and VirtualBank eCDs are no different.

How to get VirtualBank’s CDs

If you want to open a CD with VirtualBank, you will need to apply through the VirtualBank site or download the PDF application. You will need to provide basic details about yourself (name, address, phone number etc.) as well as details about the CD you would like to open, including the term and the minimum deposit.

LEARN MORE Secured

on Virtual Bank’s secure website

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How VirtualBank’s CD rates compare

VirtualBank offers relatively high CD rates compared with other best CD options.

The biggest downside to VirtualBank’s eCDs is the $10,000 minimum deposit to open. Many other banks offer CDs with competitive interest rates and lower minimum opening deposits. If you have less than $10,000 to invest in a CD, it makes sense to look into these other CD options instead.

VirtualBank’s money market account options

VirtualBank offers two different money market accounts: the eMoney Market and the Jumbo eMoney Market. Each account has different requirements and benefits. Read on to find out more.

eMoney Market account

VirtualBank’s eMoney Market account offers a decent APY, but you can only withdraw or transfer from the account a maximum of six times per month.

APY

Minimum Balance Amount

0.80%

Any

As of 6/7/2018

  • Minimum opening deposit: $100
  • Monthly account maintenance fee: $5
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: $35

VirtualBank’s money market account rate isn’t as high as you can get — there are other money market accounts that offer rates as high as 3% APY.

Even so, this account isn’t the worst option and could still be a good fit depending on your needs. It offers a constant APY regardless of how much money you deposited in the account, however, you will need to deposit a minimum of $100 to open. You will also need to have a minimum daily balance of $100 in order for the eMoney Market’s $5 account maintenance fee to be waived.

A money market account is a good option for someone who doesn’t need to withdraw from the account more than six times per month. That’s because you’ll be charged an excessive withdrawal fee of $15 after six transactions per month. 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.

While VirtualBank doesn’t offer the highest rates available for their eMoney Market account, they don’t require a high minimum deposit to earn the highest available rate for this account. In fact, no matter how much you have deposited, you’ll earn the same APY. You do have to keep a minimum daily balance to avoid the monthly fee, but it’s a pretty low requirement.

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 (and remember, you are limited to six transactions per month). Also, be careful when withdrawing from your this account because you will be charged a $35 overdraft fee if your balance goes below zero.

How to get VirtualBank’s eMoney Market account

If you want to apply for VirtualBank’s eMoney Market account, you’ll need to head over to the website. The application will require your personal information, minimum opening deposit and funding source.

LEARN MORE Secured

on Virtual Bank’s secure website

Jumbo eMoney Market account

VirtualBank’s Jumbo eMoney Market account offers a higher APY than their eMoney Market account, but you’ll need to deposit a lot of cash to get that rate.

APY

Minimum Balance Amount

0.25%

$.01 - $249,999.99

0.90%

$250,000 or more

As of 6/7/2018

  • Minimum opening deposit: $100
  • Monthly account maintenance fee: $5
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: $35

If you’re going to park a big chunk of cash into a money market account, you can probably do better than VirtualBank’s Jumbo eMoney Market account. There are other accounts that offer higher APYs without such a high minimum balance requirement. VirtualBank only requires a minimum opening balance of $100 for their Jumbo eMoney Market account, but you’ll need to have at least $250,000 in the account in order to qualify for the higher 0.90% APY.

If you plan to have less than $250,000 in your money market account, the eMoney Market will give you a higher APY than their Jumbo eMoney Market account.

Additionally, VirtualBank has a $5 monthly account maintenance fee, which is waived if you have a $100 minimum daily balance.

Remember that a money market account is a good option only if you won’t need frequent access to your funds. You’re only allowed to withdraw or transfer from a money market account six times per month.  Anything over that and you’ll be charged an excessive withdrawal fee of $15 per additional transaction. If you regularly withdraw from your account more than six times per month, your account could be converted to a checking account or closed.

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 (and remember, you are limited to six transactions per month). Also, be careful when withdrawing from your the 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 head over to the website. The application will require your personal information, minimum opening deposit, and funding source.

LEARN MORE Secured

on Virtual Bank’s secure website

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How VirtualBank’s money market accounts compare

VirtualBank’s money market accounts are okay, but they’re not stellar. There are other money market accounts out there offering higher rates with lower requirements to meet. Even if you have enough to qualify for the Jumbo eMoney Market account’s highest rate, you can still find higher APYs elsewhere.

Overall review of VirtualBank’s banking products

Overall, VirtualBank offers okay banking products. Regardless of the product, there are better options offered by other banks that offer higher APYs for less requirements.

That’s not to say you should rush to close your VirtualBank account if you already have one open, but it’s definitely worth shopping around to see if there are options that will work better for you.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Caroline Lupini
Caroline Lupini |

Caroline Lupini is a writer at MagnifyMoney. You can email Caroline here

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News

1 Million People Could Be Missing Out on Their Tax Refund

Editorial Note: The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

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An estimated 1 million taxpayers are leaving $1 billion worth of tax refunds on the table — and they only have a few weeks left to claim them.

The unpaid refunds have been collecting dust in the U.S. Treasury since 2014. These taxpayers didn’t file their 2014 taxes, the IRS says, and in order to get the refunds, they have to file by April 17 or miss out on the cash.

This isn’t a few bucks we’re talking about either. The median unclaimed refund is worth $847.

You only have three years to claim unpaid tax refunds, which is why these taxpayers only have until April to collect. Although it’s true that you’ll get slapped with a penalty for filing taxes late, that isn’t the case for people expecting a refund. There is no tax penalty for filing late when you are due a refund, acting IRS Commissioner David Kautter said in a statement Thursday.

The state with the highest rate of unclaimed tax refunds is Texas. The IRS estimates some 108,100 taxpayers in the state have an unclaimed tax refund with a median value of $899. Wyoming and North Dakota are among the states with the fewest number of taxpayers who are missing out on a 2014 refund; however, these taxpayers have the most money to lose — a median refund of $973 and $952, respectively.

Why would anyone leave their refunds unclaimed?

A common misconception is that filing taxes is expensive, even for low earners. In reality, there are several programs that allow you to file taxes for free if your income is under $66,000.

Plenty of taxpayers, especially students or low-wage earners, may not consider filing their taxes because they don’t think they earn enough income to make it worth their while.

Even so, these workers often do pay federal and state taxes throughout the year and may be overpaying. Furthermore, tax refunds aren’t just a way to repay people who had too much taxes deducted from their paychecks — they also include refundable tax credits like the Earned Income Tax Credit (EITC), Child Tax Credit, and the American Opportunity Tax Credit for undergraduate students. This means that filing a return is particularly important for low-income taxpayers, even if they didn’t have any taxes withheld during the year.

Filing prior year returns is also very important for self-employed individuals (including “gig economy” workers for companies like Uber, Lyft, Postmates and Instacart) – filing a tax return and paying Medicaid and Social Security taxes on that income is how the Social Security Administration determines eligibility and payment amounts for retirement benefits.

This doesn’t mean that you should make a habit of not filing your taxes. As we said, if you owe money to the IRS, they’ll charge interest and late filing penalties if you file past the deadline. But it does mean that if you forgot to file your taxes in a previous year, all hope may not be lost.

How to file a prior year tax return

If you or someone you know needs to file a tax return for 2014, 2015 or 2016, here are the steps to do so:

  1. Make sure you have all of your documents. If you’re missing any tax forms (like W-2s or 1099s), the company or person that paid you should be able to provide a copy. Request a “Wage and Income Transcript” on IRS.gov, which will tell you all of the income that was reported to the IRS for the year(s) you request.
  2. Prepare your federal tax return. If you want to fill out your forms by hand, the IRS website has all prior years’ tax forms available for download. Most tax software companies also make prior years’ software available for download, though you’ll usually pay full price for it. There are some free online options, like FreeTaxUSA.com (free for federal taxes, but there are fees for state filing and additional services). Check out our 2018 roundup of the best tax software.
  3. Print, sign, and mail your return. In most cases, prior years’ tax returns cannot be filed online. Make sure to keep a copy for your records, and send your return with certified mail or some other form of delivery confirmation.
  4. Prior year tax returns are not high on the IRS’ priority list, and refunds cannot be direct deposited. The standard processing time for current year returns filed by mail is six to eight weeks, so expect to wait at least that long for a response — and possibly even longer. If everything looks good, you’ll just get a check in the mail; if the IRS has any questions, or thinks you owe them taxes for another year, then you’ll get a letter in the mail asking for more information.
  5. Don’t forget about your state taxes. Chances are that if you didn’t file your federal taxes, you also didn’t file a state tax return – you might have even more money waiting!

The same deadlines for prior year filing also apply to making amendments to your taxes, so it’s worth taking a moment to review your 2014 tax return and make sure you didn’t miss anything. If you realize that you forgot to include a form, checked the wrong box, missed a deduction or made any other kind of error on your taxes, you have until April 17, 2018 to file a Form 1040X  reporting the changes. If the new information results in an additional refund, you’ll get a check in the mail – with interest!

If you need assistance with filing or amending a prior year tax return, the IRS coordinates two free programs to help people prepare their taxes: Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE). If you’re not eligible for these programs, any paid tax preparer should be able to help you.

For more information about filing prior year tax returns, visit the IRS website.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Caroline Lupini
Caroline Lupini |

Caroline Lupini is a writer at MagnifyMoney. You can email Caroline here

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