iGoBanking is an online bank that offers account owners high interest rates on online savings accounts, CDs and money markets. They are the online division of Flushing Bank in New York (FDIC insured) and allows people to open and fund accounts online.
This iGoBanking review will cover the features of each account, the pros and cons of opening one, and how to decide if this is the right option for you.
Types of iGoBanking Accounts
iGoBanking requires no minimums for anyone (over the age of 18) to open an account with them. There are also no fees or any monthly service charges. Currently, the interest rate for a savings account is 1%. They also offer a checking account with a $1 minimum, but the interest rate is at 0.25%.
Money Market Accounts
To open a Money Market account, you’ll need a minimum of $25,000, with a maximum of $500,000. If your account dips below $25,000 you’ll have to fork up a $15 low balance fee. Currently, the interest rate sits at 1.09%
It might be worth it to keep your money in a CD account if you’re working towards a short term savings goal. Currently, the interest rate for up to a 24 month term is 0.15% while an account for a term up to 10 years is 0.35%. There is a minimum of $1,000 to open an account.
Keep in mind that when your term is up, your CD will automatically be rolled over to whatever the current interest rate it, so keep an eye out for that.
- Low minimum balance to open a savings account
- No monthly fees or maintenance charges for their CDs
- Excellent customer service and 24/7 access to account information
- Easy access to customer service agents with their toll-free number
- Easily open an online account
- Higher minimum balance for CDs ($1,000)
- High minimum balance for a Money Market account ($25,000)
- You need to have at least $100,00 in a Money Market account to maximize earning potential
- Email response times are slower than calling the toll free number
- You already need to have an existing bank account to open one at iGoBanking (to initiate deposits)
Should You Open an iGoBanking Account?
If you’re looking for an online bank with low minimums and that earns you interest, it might be a good idea to open one. Yes, their interest rates may be high compared to some other online banks, they’re much lower than other ones. So if you can afford to have higher minimum amounts, checking out other premium online banks might be a better idea.
Their other accounts may be off-putting to some as their minimums are high, so you might want to do some more research before settling for their CD or Money Market accounts.
Keep in mind that iGoBanking is FDIC insured, so your money is pretty safe. So if you’re looking for a secure option to keep some of your money, iGoBanking is worth checking out. However, if you want more sophisticated features like credits, loans or even other investment options, you’re better off looking elsewhere.