Tuesday, 24 November 2020

Investors Bank Review: Checking, Savings, CD, Money Market and IRA Accounts

Investors Bank Review: Checking, Savings, CD, Money Market and IRA Accounts
19 Oct
9:08

Investors Bank’s Most Popular Accounts

APY

Account Type

Account Name

Compare Rates from Similar Accounts

0.05%

Savings

Investors Bank High Yield Savings Account

2.15%

CIT Bank Savings Builder

LEARN MORE Secured

on CIT Bank’s secure website

Member FDIC

0.25%

CD Rates

Investors Bank 12 Month CD

2.55%

Goldman Sachs Bank USA High-yield 12 Month CD

on Goldman Sachs Bank USA’s secure website

Member FDIC

0.60%

CD Rates

Investors Bank 36 Month CD

3.00%

American Express National Bank 60 Month CD

on American Express National Bank’s secure website

Member FDIC

Investors Bank’s checking account options

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How Investors Bank checking accounts compare

As checking accounts go, the ones at Investors Bank are mostly disappointing. Only Preferred earns interest and the rate is very low, especially considering you need to keep a $5,000 balance between two accounts to avoid the monthly fee. We also don’t like that its basic Consumer Checking account charges a fee no matter what, despite offering very little in return.

Accessing your money with these accounts could be expensive as none of them refund out-of-network ATM fees. Investors Bank also charges another $3 fee per transaction if you make more than four out-of-network transactions per cycle; that’s on every checking account except Preferred.

As far as the positives, if you don’t already have a checking account, the $250 signup bonus on YourStyle Checking is an attractive offer and helps make up for not earning interest. Fans of the New Jersey Devils might also like an account that lets them show off their team while earning points for NHL tickets and merchandise.

Still, most prospective customers would be better off with a checking account that earns interest and provides lower-cost access to the money. These online checking accounts accomplish just that.

Investors Bank’s savings account options

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How Investors Bank’s savings account compares

If you want to earn a decent interest rate on your savings account, you won’t get it at Investors Bank. Most of their accounts pay an extremely low rate. Even their High-Yield Savings account, which requires a balance of at least $5,000 to earn what’s touted as a higher rate, still doesn’t pay nearly enough.

It’s also a problem that Investors Bank does not refund out-of-network ATM fees. If you don’t live near a branch, it could get expensive to access your money.

For a savings account which earns interest and provides more convenient access to your money, check out these other savings account options instead.

Investor Bank’s certificates of deposit

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How Investors Bank’s CD rates compare

The Investor Bank SPECIAL CDs offer terrific interest rates. They definitely put their best foot forward to attract new clients. Besides these promotional rates, the rest of the Investor Bank CDs are not a good choice as they pay very little interest. Even some online checking accounts earn more than the Investor Bank CDs.

If you want a CD for $10,000 and your money isn’t already at Investors Bank, it could be worth taking up one of their promotional offers and then moving on at the end of the term. Or you could consider one of these top CDs which consistently offer excellent interest rates that won’t necessarily end at the end of term.

Investors Bank’s money market account options

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How Investors Bank’s money market accounts compare

The Investors Bank Money Market Maximizer offers a terrific interest rate. If you earn its highest rate by depositing more than $25,000, it’s comparable with even the very best money market accounts in the country. It’s too bad you can only use the Money Market Maximizer for only a year because outside of that promotion, the Investor Bank money market accounts are pretty weak.

Their interest rates are low, they have high balance requirements and they charge high monthly fees whenever you fall below the balance requirement. If you go with Investors Bank, we would recommend only using their Money Market Maximizer for a year before switching out.

Also, you can only open the Investors Bank money market accounts by visiting one of its bank branches. Their accounts cannot be opened online or by phone. Once there, you will need to provide your name, address, Social Security number, driver’s license or government-issued ID, and a way to fund the account.

Otherwise, try one of these money market accounts which can just as much and will not end after one year.

Investor Bank’s IRA account options

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How Investor Bank’s IRA accounts compare

The Investor Bank SPECIAL IRA CDs are excellent when you first sign up and qualify for the promotional rates. But once you get through the initial stretch, the standard IRA CD rates are mediocre.

With the Retirement Savings account, you can open an IRA with a small amount and still earn a steady return without any early withdrawal restrictions. These are some nice features but unfortunately the interest rate is just too low to build any real retirement wealth.

Of the Investor Bank IRAs, it may be worth using the SPECIAL IRA CDs until it expires and then move into something better at the end of the term. If you want to earn a high IRA CD rate without bouncing around, try these top IRA CD options instead.

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David Rodeck

David Rodeck |

David Rodeck is a writer at MagnifyMoney. You can email David here

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Source: https://www.magnifymoney.com/blog/reviews/investors-bank/

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