Posted by Chuck on January 6, 2017
Checking Accounts

Published on January 6th, 2017 | by Chuck

100

MemoryBank .90% APY on up to $250,000

Update 1/6/20: Rate decreased to .90%.

Update: 02/01/18 Rate increased to 1.6% APY

Update: MemoryBank’s 1.5% APY account is no longer first year only.

Offer at a glance

  • APY: 1.6% APY
  • Availability: Nationwide
  • Additional requirements: ACH transfer, e-statements, 5 debit card purchases
  • Hard/soft pull: Soft
  • Credit card funding: Up to $500
  • Monthly fees: None
  • Expiration date: Unknown

The Offer

Direct Link

MemoryBank is an FDIC insured internet bank available to US residents age 18 or older.

  • MemoryBank offers an EarnMore checking account with an interest rate of 1.5% APY on balances up to $250,000 when qualifications are met

 

To be eligible for the bonus rate, you need to do the following three qualifying activities:

  • Receive at least 1 electronic deposit such as payroll, transfers from other financial institutions, or even Popmoney each month
  • Use your debit card for at least 5 in-person or online purchases each month
  • Get your statements online

 

The Fine Print

  • Minimum $50.00 to open account
  • After the bonus period you must maintain activity requirements to earn the current APY and no bonus APY is available
  • A new customer is defined as not having an EarnMore Account in the six months prior to date of account opening
  • If activity requirements are not met or balances are in excess of $249,999.99, the APY is .05%

Our Verdict

The qualifications aren’t difficult to meet, but given other savings accounts are offering up to 1.55% APY with no requirements this isn’t an attractive offer. It’s fairer to compare this to a rewards checking account that also has requirements and these accounts offer up to 5% APY.  We’ll add this our post on Best High Interest Savings Accounts.

Hat tip to Maxmizingmoney



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gary
gary

does anyone know if its a hard or soft pull and it says the account can be funded by debit/credit card anyone know up to how much?

joe
joe

We will be jumping on this. (I think) The real improvement is the ease of use vs multiples $25K reward checking accounts combined with a 1%+ savings account. Instead of ~60 transactions you need to do 5. And there is no restrictions on how many transactions go out of the account like a 1% savings account.

The one big drawback, is if you’re not diligent, instead of missing out for the interest for 1 2% 25k account you are missing out for the whole thing.

It says it can be funded with a credit card? I did not see that… And the lady at the 800 # told me soft pull.

Matt
Matt

It’s a soft pull, and up to $500 with credit card.
Gave me a 2 day message, but I think this is standard.

Matthew
Matthew

Update: denied. that was really fast. must be really chex sensitive, oh well.

Matthew
Matthew

lol if you could delete my reply that would be great, google autofilled in my full name…

Matt
Matt

If you could delete the above comment that would be great, google autofilled my name.

Ken
Ken

How many new bank accounts have you opened in the last 6 and 12 months?

Ashok
Ashok

Hi Doc – The rate of 1.5% is not guaranteed for 1 year. Only the bonus rate of 0.5% is guaranteed for 1st year . The base rate of 1% can change at any point in time like a reward checking account as per the fine print for this account

I bet this rate falls in a couple of months unless the fed increases rates further.

Radster
Radster

Where did you see language to support your claim?

I think you’re incorrect based on “Earn 1.5% Annual Percentage Yield.. for the first year…”

Ashok
Ashok

Also you cannot add a beneficiary or POD on this account .. that kind of sucks

Ben
Ben

Not trying to be nitpicky, but when I first read this I thought you meant only 1 DD in the first year and only 5 debit card transactions in the first year….not per month. That got me more excited, until I clicked on “need” link which clearly states the DD/debit transactions are per statement.

Evan
Evan

I haven’t heard of an account where the requirements are per year. They’re always per month.

Chris
Chris

Got instant approval and option to fund $500 with credit card. Thanks for the heads up!

Ken
Ken

WOW this is a great deal. 0.5% better than my other best savings account. That’s a free utility bill over my other account 🙂

I’ll wait to see if we can establish a reason why they deny some people as we’ve got lots of Chex inquiries.

Stor
Stor

I am actually interested in how this account works on payment on death. It may be a bit morose but I do also base my;savings account choice on ease of keeping funds out of probate. Particularly if I am going to park 200k+.

ss
ss

Couple of deal breakers –

1. From fine print: “Rates may change at any time.” Plenty of banks lure new customers with high rate then drop it. See UFBDirect, Mysavingsdirect, etc.

2. From live chat with rep: “No PoD designation allowed.” If you pass away, good luck with probate.

3. Mentioned above: Denials based on Chex inquiry issues.

Alternative – 1.4% 1 year CD at http://www.melrosecu.org/rates?RateId=36 or
1.38% 1 ear CD at https://www.connexuscu.org/primary-landing/201701-share-certificate-primary

Joshua H.
Joshua H.

Approved after phone call from CSR. Chex pull, no hard pull. Fund $500 with Citi AA Plat Select, in Citi page it shows as professional service during pending.

Joshua H.
Joshua H.

charge posted as purchase

Aks
Aks

Instance approval. But online account opening will take 2-3 business days.

Yu
Yu

Can anyone who fund the account with CC share which CC you use and if it is treated as purchase?

Dan
Dan

I just funded with my Amex DL Reserve card. I’ll report back whether it settled as a cash advance or purchase.

Dan
Dan

Seems to have posted as a purchase:

PROFESSIONAL SEVICES
Category: Business Services – Other Services

William Charles

Thanks, Dan. Added DP.

lian
lian

what’s the fund 500 at credit card, I am new here don’t know what is. Please.

Kirk
Kirk

I just called Memory Bank asked if it would be charged as a purchase or cash advance. I think I will try it anyway. I have set my cash advance max limit to $20 on my Chase credit card.

William Charles

No point in calling regarding this.

Kirk
Kirk

They told me it would be a cash advance. (I forgot to add this to my previous post.)

Aks
Aks

I used BofA Travel card where $500 posted as purchase.

Yu
Yu

Hi Kirk,
Do you have an update whether the CC charge is purchase or CA?

BTW, which Chase CC are you using ?

Thanks.

Chris
Chris

I funded the account with a Chase Sapphire Preferred. It coded as a purchase.

Yu
Yu

Thanks Chris.

Yu
Yu

One more question. Since it says the New monthly statement cycles begin on the 15th of each month, does that mean it’s best if I open the account on 15th?

Thanks.

cm
cm

For what it´s worth, yes, you should open the account on the 15th. I opened mine on the 9th or 10th of the month and that statement cycle a) counted as one of the 12 I get at the bonus rate, and b) only got me 3 days of the higher interest. So that was a mistake. I even saw your question and just didn’t think about it enough.

Hanna
Hanna

Chase Freedom Unlimited coded as purchase.

Ken
Ken

Has anyone been successful opening this account that has a lot of new bank accounts on their record? Like 6+ for the last 6 months?

Hanna
Hanna

I opened this one and another on the same day which were numbers 6 and 7 over the last 5-ish months. Approved for both.

Ken
Ken

Awesome, thanks.

travis
travis

my application was actually declined. anyone having any experience having them change the decision?

billy
billy

ditto here. i think we were too late to get in after the flood.

Dave
Dave

How reputable is this bank? I’m not seeing any reviews for them and their website looks about 10 years outdated

borntobehermit
borntobehermit

It doesn’t look to be in Mint. Has anybody found a way to add it?

Tan T
Tan T

I called the bank, they don’t support Mint.com yet.

I opened the account last month and today my Funds Transfer was locked. I called and after a very long process (about 40 minutes, they have to tell me they will call back), the CSR said I was locked because I ACH’d an outside account that is not under my name. Never had that problem with Alliant before. Now they unlocked that feature but all of my registered outside accounts have been suspended and I don’t find a way to access them. Will give them a call again this afternoon. Also, they also limit your transfer accounts to be only 5.

This bank is good for putting money there as savings money, but it’s not good at all as a main bank account. I’m thinking if it;s worth open just for 0.5% more than other high yield checking, but with limitation and no support from Mint.

Joe
Joe

To add on to this, they throttle how much you can withdraw per day and per rolling 30 day period. I was told these limits increase over time, but it caps out at $10k for the transaction and $20k for the rolling 30 day period. That is disappointing to me.

I asked how would I get out more quickly, and was told I can write a check to myself. Does anyone have experience with that at this bank or other banks?

TG
TG

Have you tried to just ACH pull above the limit from another bank?

Nick
Nick

Pulling from another bank is the only way to go. It gives you unlimited access to your Memory Bank balance subject to the 6 withdrawals per month. It’s absolutely the only method I use given those puny daily limits Joe mentions. As a side note, UFB Direct has that same sort of restriction. However, Barclays Savings doesn’t. So, if you can live with only earning 0.95-1% that’s a handy “pass-through” account for moving large sums.

yu
yu

Did you initiated the transfer from Memory bank or from another bank ?
Also did you try to ACH fund into or ACH fund out from Memory bank ?

Thanks.

TanT
TanT

I can do ACH just fine (in and out) from another bank. Just get stuck when I want to initiate it from Memory Bank.

Ed
Ed

I have a Memory Bank account and was told in a phone call that it is considered a checking account not subject to the 6 withdrawals per month. And if you think about it that makes sense: you have to do 5 debits to get the full rate. I don’t think anyone would “bite” at an account that would only allow one withdrawal per month after performing qualifying activities.

John
John

I am wondering whether Amazon purchases would be fine, looking at the requirements.

On the marketing site, it seems that online purchases are qualifying:
“Use your debit card for at least 5 in-person or online purchases3.”

Whereas on the account disclosures, this is slightly:
“At least 5 point-of-sale (POS) debit card transactions2 must occur during the statement cycle.”

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