Merchants Bank's 4.00% Money Market: A Solid Rate with a Few Quirks

Looking at that 4.00% APY from Merchants Bank? It's definitely eye-catching, especially with no monthly fees or balance requirements. But before you jump in, there are some important details about how this account actually works that you need to know. It's a strong offer from a legitimate bank, but it operates a bit differently than your typical online savings account. Let's break down what makes it good and where you might need to plan ahead.

The Good Stuff: A Straightforward, High Rate

Let's start with the headline: 4.00% is a competitive rate right now. What's even better is that it applies to your entire balance, not just a tier. You don't have to worry about hitting a certain dollar amount to earn it.

There's also no monthly maintenance fee lurking in the fine print, which is always a relief. You can open the account online from anywhere in the country with just $50. The bank itself is established and FDIC-insured, with over $9 billion in assets, so your money is safe.

A nice perk is that they provide check-writing capabilities, which is common for money market accounts. Just remember the federal limit of six convenient withdrawals per month applies.

The Big Quirk: How You Move Money In and Out

This is the most crucial part to understand. Merchants Bank's money market account does not have its own ACH transfer system. You can't log into their online banking and set up transfers to or from your external accounts like you can with most banks.

So, how do you fund it initially? You must use a wire transfer. The good news is they'll reimburse the $15 incoming wire fee (usually the next business day). But you'll need to initiate that wire from your main bank, which might have its own fees.

Getting money out works in a couple of ways. You can use the checks they provide, or—and this is key—you can have another bank 'pull' funds from it via an external ACH transfer. For example, you could link this account to your primary checking account at a place like SoFi or Chase and initiate transfers from *that* bank's website. There are no limits on transfers initiated this way.

• No built-in ACH push/pull in Merchants' online banking.
• Initial funding requires a wire transfer (fee reimbursed).
• Use an external 'hub' bank to manage ACH transfers in and out.
• No ATM card or online bill pay with this account.

Is This Account Right For You?

This account is a fantastic fit if you're looking for a 'set-and-forget' savings spot for a chunk of cash you don't need to access frequently. The rate is strong, and the lack of fees is a major plus.

It's less ideal if you want a fully-featured account where you can easily shuffle money around every month. The wire-for-funding step adds a bit of friction at the start, and you'll need a strategy for moving money later.

Think of it as a high-yield savings vault rather than an active transaction account. If you're comfortable using another bank as your financial command center to manage transfers, this can be a powerful piece of your savings strategy.

Practical Steps and Things to Watch

If you decide to apply, know that it's an online process but they will likely call you to confirm your details—that's normal for them. It's a soft pull on ChexSystems, so no hard credit check.

Remember to fund the account within 30 days of opening, or it will be closed. Have your funding wire ready to go.

Mark your calendar for that wire fee reimbursement; make sure it posts. And always, always keep track of those six monthly withdrawals to avoid the $2 fees. Using checks or external bank pulls counts toward that limit.

• Be prepared for a verification call after applying online.
• Fund with a wire within 30 days to keep the account open.
• Confirm the $15 wire fee reimbursement posts to your account.
• Track your withdrawals (checks & external pulls count).

Bottom Line

• A legit 4.00% APY with no fees makes this a compelling savings option.
• The lack of integrated ACH is a significant operational difference; plan to use a wire to fund and another bank to manage transfers.
• Best for passive savings, not for active monthly cash flow management.

Common Questions