bank rates

Indiana, Michigan And Ohio Residents Can Score A Savings Account That Pays 1.40%

Farmers & Merchants bank pays its top rate on balances up to $40,000.If you live in Indiana, Michigan or Ohio, you can earn 1.40% APY on your savings account — well above the best nationally available offer — though you’ll also need to open a rewards checking account to earn the top rate.

Farmers & Merchants State Bank (www.fm-bank.com) based in Archbold, Ohio, pays 1.40% APY on balances up to $40,000 with its Kasasa Saver account.

But to take advantage of that savings rate, you must also open a free Kasasa Cash rewards checking account, which pays 2.50% APY on balances up to $15,000.

It’s a typical rewards checking account, requiring you to make a dozen debit card transactions, one direct deposit or automatic debit, and use online banking to access your online statements each month. If you don’t meet the requirements in a particular month, you’ll earn only 0.05% APY on both your checking and savings accounts.

The payoff comes from maxing out your Kasasa Saver account.

The 1.40% APY tops the 1.25% APY paid by TIAA Direct (www.tiaadirect.com), which has the best nationally available savings rate. If you put the full $40,000 into a Kasasa Saver account, you’ll earn about $560 in a year.

Any money in your account above $40,000 earns only 0.30% APY. It takes a minimum $50 deposit to open a savings account.

A checking account also requires a $50 deposit to open. Meet the monthly rewards checking qualifications, and you’ll earn 2.50% APY on balances to $15,000. Anything above that earns 0.40% APY.

Farmers & Merchants State Bank has 19 branches, mostly in Ohio, though three are in northeast Indiana. But its Kasasa accounts are available to anyone in Indiana, Michigan or Ohio.

If you don’t live in one of those states, your best choice is the High Yield Savings account from TIAA Direct. It only takes a $25 minimum deposit to open an account, and you earn 1.25% APY on all balances.

TIAA Direct is a division of TIAA-CREF Trust Co., the leading retirement provider for people who work in the academic, medical, cultural, government and research fields.

You can see how these rates compare to the best savings and money market account rates from our extensive database of banks.

Don't miss out on the next bank deal. Get the newest deals delivered straight to your inbox!

Comments (1)
1 Star2 Stars3 Stars4 Stars5 Stars (2 votes, average: 5.00 out of 5)
Loading...
One Existing Comment
  1. Kathy at Bankaholic said:
    on June 27th at 07:30 am

    Farmers & Merchants State Bank is still paying these rates.