Update 1/5/2020: Rate has been reduced to 1.76% APY.
Offer at a glance
- Interest Rate:Â 1.8%
- Minimum Balance: $100-$5,000 for 1.8% rate
- Maximum Balance:Â $999,999.99
- Availability:Â Nationwide
- Hard/soft pull:Â Unknown
- ChexSystems: Unknown
- Credit card funding:Â Unknown
- Monthly fees:Â $15, avoidable
- Insured:Â FDIC
Contents
The Offer
- Bank 7 is offering a 1.8% APY on their high rate online money market and high rate online savings accounts. There are some slight differences between the accounts:
- Savings account earns 1.8% when your balance is $100.00 – $999,999.99
- Money market account earns 1.8% when your balance is $5,000.00 – $999,999.99
- It’s also easier to keep the savings account fee free
The Fine Print
- All bank account bonuses are treated as income/interest and as such you have to pay taxes on them
Avoiding Fees
Money Market Account $15 Monthly Fee
This account has a $15 monthly fee. As long as you have a balance of $5,000+ this fee is waived.
Savings Account $15 Monthly Fee
This account has a $15 monthly fee, this is waived with a balance of $100+.
Our Verdict
Savings account is clearly superior to the money market account. That being said I’d be worried the money market account will be made better in the future. One thing I dislike about both accounts is that there is a monthly fee involved if you don’t meet the balance requirement. If Bank 7 starts offering a non competitive rate I don’t want to have to worry about keeping it fee free.
Salem Five Direct is offering a 1.85% APY rate currently and Dollar Savings Direct has 1.8% as well without the monthly fees. For most people with a healthy emergency savings account I’d recommend focusing on a rewards checking account instead of a basic savings account like this anwyay as the returns are 5% instead of under 2%.
