Update 3/9/24: If case anyone still has this account from when we wrote about it in 2019 – Memory Bank is apparently closing down at the end of March. You can see this other (dated) post for some more options: What’s the Best High-Yield APY Checking Account Option? (ht reader Steve)
Original Post 1/8/2019:
A while back, in the post What’s the Best Simple High-Interest Checking Account?, I pointed out that from all high-yield accounts available none are checking accounts, with the exception of the 1.6% Memory Bank checking account (direct link).
At the time, I don’t think Memory Bank offered any high-yield savings account, but since September they’ve been offering a competitive money market account, and they’ve continued bumping up the APY rate as rates rise. That makes me optimistic they’ll continue maintaining their spot near the top of our Best High-Yield Savings Rates list.
Not everyone has much cash on hand, but there are some people who keep large stashes of cash, either as their MS float, because they don’t want to invest all their money, or similar reasons. Many banks like Ally and Discover offer great rates on savings and a terrific full service checking accounts, but no interest is earned on the funds held in the checking account.
This Memory Bank combo creates a new option of getting a highly competitive savings rate with their money market account (currently 2.40% APY which is near the top of all rates available) AND a decent rate on funds in the checking account (currently 1.60% APY). This is especially useful for someone who moves large amounts of cash, and sometimes wants to put into savings for a few months before they’ll need it again. Presumably you can easily transfer funds between the money market and checking accounts.
This sucks for me because this the pay-from on all the credit cards and the external bank on all the bonus accts I’ve opened thanks to DoC over the years.
Time to open another free checking under DoC’s Best Checking Accounts.
I had an account with Memory way back when 1% was a great rate! Seems like a lifetime ago. Their customer service staff was great, and I wish them the best.
In Memoriam Bank.
Flagstar, they took over from NYCB but NYCB still owns them. Had NYCB for years and my dad also, for about 40 years. 7 Month CD 5.5% I know they currently have problems, but FDIC insured About Us | Flagstar Also Western Alliance is 5.36 but could change at any time. $60.00 back via SB. It’s called the highyieldsavings.westernalliancebank.com. You need to go thru SB to get the rate. Rate has been 5.36 for 8 weeks so far.
Actually, NYCB bought out Flagstar and then changed their name to Flagstar, presumably because they didn’t want their name to indicate a specific geography. Corporate name is still New York Community Bancorp, Inc.
NYCB this is a bank that is on the verge of going under and is actively in the news pending FED bailout and/or buyout by another larger institution.
with 200 billion in deposits and assets (some not liquid) they will not be going under) and with rates rumored to go south by May/June, I’m depositing funds into their 5.5% 7 month CD anyway.
SVB had $211 billion in deposits and assets on the very day it was shut down, exactly 1 year ago today.
thanks
Ah yes Memory Bank.
All of us readers and do I mean just about everyone here got a $100 back in 2018.
Guess it was before my time.
Thanks for the memories
Same here. Chuck how do you know they are shutting down? Website seems devoid of any messages, “news” and “blog” posts are a wasteland. It’s not terribly surprising, but I can’t find anything on relaxing Sunday morning with nothing better to do 🙂
They sent out an e-mail
Weird, I didn’t receive an email, and suddenly had my autopayment rejects and their website is down. Kind of scared I lost my account
*memory
I stuck with this bank for awhile after I got my reward- they were good and when I needed customer support the people I dealt with were very nice. I’m kind of sad they’re going.
Don’t cry because it’s over; smile because it happened.
Same, I used them as a hub account for years. The $2000 ACH limit was annoying but customer service was always super helpful. Guess I’m replacing it with an Ally checking account.
Just put it in the… memory bank
Just a warning that they have some ridiculous policies like not raising your ACH or mobile deposite rates until you have a high enough balance but it takes quite a long time to get a high enough balance if you can only do incremental deposits at their low rates.
To the best of my knowledge, the T-Mobile Money account is also an interest-bearing checking account. It pays 4% with minimal requirements (you did a review, to recap the requirements are a post-paid T-Mobile line and a $200 deposit each month).
Downside is that 4% only applies to the first $3000, the portion above that earns only 1% (which is still great compared to most other checking accounts that don’t require contortions to qualify)
only complaints are low ACH transfers limits and lack of Money order deposits.
Transfer limits need to be fixed.
Use hub account! Spreadsheet! 🙂
The use of hub account is irrelevant. They offer a great rate but when I can’t transfer money w/o the hassle of pushing in and out through a middle man bank it’s not worth it. I’m not gonna change the account I pay my Amex bill from because I can not have any attention on my account. So I need to be able to just get a high rate on my MS float and then push quick to my main checking to pay off bill. But for Memory Bank that is too difficult.
Gadget
I just wouldn’t expect anything to get “fixed”. Most banks have anorexic external transfer limits. Look at Wells Fargo, for example: ACH limit is Daily Maximum = $5,000, 30-Day Maximum = $6,000. But use of a hub bypasses any imposed dollar limits.
Number of outgoing transfers/withdrawals of 6 per month is a constant for all Savings and MM products though, at any bank. You can thank Reg D and our govt for that. The only workaround for that is to have multiple of the same type of account or product if you want to get away with more savings withdrawals than intended.
Bill pay and external transfer limits are two different things, usually. I can’t say I know what rules are in place at every bank, but I am not aware of Bill Pay caps. (other than it counts for a withdrawal) You can also pay your Amex bill from the Amex site or Amex app and avoid any dollar limits. People change banks & payment settings all the time, so somehow I don’t think that is going to get attention from the RAT.
But, you do you. Is 0.4% difference in interest worth that risk of endangering your MS game?…. probably not. Party on.
Gadget Good points everything you’ve said. I have a 15k reported income and have spent 32k in 1.5 months on my Amex Cards I would like to do as much as possible to avoid any attention from them. Therefore I will be as cautious as possible.
how did you get to 32k MS? I need new ideas please,
Buy VGC ——> Serve/BB ——> Transfer to Bank Account
Repeat
5 years later, what do you do for MS now? Dan - Legal Bank Robber
I own my own Buying Group.
Gadget Why didn’t you tell me about 1 day ACH through Ally. Changes the whole game, now I am content moving shit around for the .4%. Ah Memory Bank is good for more than just Amex CC funding 🙂
Dan - Legal Bank Robber 1. I am new to Ally, and really haven’t surveyed their services.
2. I think most banks have slowly upgraded their ACH speed. I am getting 1 day service usually at many banks. The online banking will say 2-3 bus. day, but actually take less. Maybe banks are opening up transfer windows at different times, and the change requires policy changes at each bank? Anyway, they have have slowing rolling increased ACH speed out in phases, and 2018 was supposed to be same day “payments”. In year 2020, same day ACH “transfers”. https://www.nacha.org/rules/expanding-same-day-ach