MutualOne Bank’s new online savings account is a winner


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Savers nationwide have more reasons to be excited. Not only are banks and credit unions raising yields on savings and money market accounts, but online banking is driving innovative new products.

MutualOne Bank started offering an online savings account in early February. The account pays 1.61 percent APY, making it the top nationally available savings account rate.

Note that the savings rate only applies to balances of up to $250,000. If you deposit more than that amount, you’ll earn 0.25 percent APY.

Fortunately, your entire balance will be fully protected in the event that the bank fails thanks to the Share Insurance Fund, a private fund that insures excess deposits. The Federal Deposit Insurance Corp. only insures deposits of up to $250,000, per account holder, per ownership category.

Compare MutualOne Bank’s deal to other high-yield savings account offers. While you’re at it, find out how much interest you could earn over time.

If you’re looking for a secure account with a higher yield, consider opening a certificate of deposit.

Top nationally available savings account rates
Bank APY Minimum balance
MutualOne Bank 1.61% $0
Live Oak Bank 1.60% $0
DollarSavingsDirect 1.60% $1
PurePoint Financial 1.55% $10,000
CIT Bank 1.55% $100
IncredibleBank 1.55% $25,000

The fine print

Here’s another reason why you’ll want to open the online savings account at MutualOne Bank: There’s no minimum daily balance requirement. And to open the account, you’ll only need to deposit $10.

According to the bank’s consumer disclosure, interest compounds monthly. That’s not a bad thing, but you would earn a bit more interest if it compounded daily (depending on the size of your deposit).

One more thing to keep in mind is that the top rate (1.61 percent APY) is only guaranteed through July 31, 2018. This suggests that the yield could be a teaser rate that might eventually drop.

How to open MutualOne Bank’s new savings account

As its name indicates, this savings account is only available online. Transactions cannot be completed in a branch, you must register for online banking and you need to sign up for e-statements. Account holders must be U.S. citizens or resident aliens who are at least 18 years old. You must also have:

  • A Social Security number
  • U.S. home address
  • ID issued by the U.S. government (such as a passport or driver’s license)

To fund your account, you can transfer money from a U.S. checking or savings account. You can also use a debit or credit card.

When you open your account, you have the option of printing your signature card or asking the bank to mail it to you.

About MutualOne Bank

MutualOne Bank is based in Framingham, Massachusetts. In 1889, it was founded as the Framingham Co-operative Bank. According to its website, the bank’s name changed in 2012 following a merger with a federal savings bank.

The institution has its own charitable foundation that provides grants to local projects and initiatives. In Bankrate’s review of its financial health, MutualOne Bank earned five out of five stars.