Zions Bank has at least two Internet-only, high-yield bank accounts. One is the High Yield Checking account, the other is their Money Market account.
High Yield Checking Account
This
account, at the time of writing, has three balance ranges. A balance of
$2,500 - 19,999.99 pays 3.05% APY; $20,000 - $99,999.99 pays 3.77% APY;
$100,000 and up pays 4.18% APY. The minimum opening deposit is $100,
and there are a fair number of features: unlimited check-writing, free
Check Card, ATM deposits and withdrawal (as well as online account
access), overdraft protection (with credit approval), free Internet
Bill Pay Service, free Internet Banking.
There is no monthly service, but if you go to a branch and ask assistance from a bank teller, there is a $3 transaction fee. If you have the funds, and need access to them, this isn't such a bad setup. You pay for the convenience in a lower APY, but there are also no primary service fees.
Money Marketing Savings Account
This
account has no limit on the number of monthly deposits. Money can be
withdrawn from an ATM or funds transferred to a linked checking
account. Their literature describes this account as being the same as
their High Yield Checking, but without the checking. Fortunately, your
account balance can be a lot lower than that account to earn interest.
There are two balance brackets: $1,000 - 4,999.99 and $5,000 and up.
But at the time of writing, both brackets pay 5.13% APY.
The fine print reveals that rate is variable, paid monthly, and compounded daily on the "collected balance, which is the book balance minus the float." The minimum opening balance is $100. There are no monthly fees, but there are a few more conditions than with the High Yield Checking account. A maximum of six transfers are allowed in each thirty-day cycle, either by pre-authorized, automatic, or telephone transfer. A maximum of three transfer can be made by check, draft, or debit card.
Unlimited withdrawals are allowed in person, by ATM, or even by mail or messenger. If you exceed three telephone transfers in a month, each extra transfer will be charged a $3.00 fee. As with the checking account, teller assistance is charged $3.00 per transaction. All Internet-based transactions are free.
I didn't see any evidence that you could link the Money Market account to a checking account not at Zions. In fact, they suggest linking it to the High Yield Checking account. Given the fairly favorable conditions, if you have the minimum balances necessary, that's not such a bad idea. Keep in mind that Zions Bank is a member of the FDIC, and thus your total deposits with them are only insured for a maximum of $100,000, the amount you need to get the top rate for the online checking account.
Find out more at their website: Zion's Bank Internet-Only Accounts.
Compare the Zions Bank terms and conditions with online savings accounts for Ing Direct, Emigrant Direct, or HSBC Direct. At the time of this writing:
- Emigrant Direct has no minimum balance requirement and no setup or monthly fees. You can link up to two accounts to their online savings account.
- Ing Direct similarly has no fees and allows up to three other accounts to be linked to their online savings account.
- HSBC Direct has no fees, service charges, or minimum balance requirements. You can only link one bank account to the online savings account, with transfer preference given to an existing HSBC checking account. That is, transfers between their online savings account and accounts at other banks may take longer.
These three are amongst the most flexibile online savings account offerings, and have the least string. Note that their terms and interest rates may change by the time you read this.
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