VirtualBank Review: Online Banking Focused on High-Yield Money Markets
Written by
Cynthia Bowman
Edited by
Melanie Grafil
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GOBankingRates Score
VirtualBank
-
Money Market Account
4.8
-
CD Accounts
4.5
-
Banking Experience
3.8
Pros
- $100 opening balance requirement for money market accounts
- High APYs
- No fee on money market account
Cons
- Customer service only available during business hours on weekdays
- No cash deposits possible
- Two days for transfers to clear
VirtualBank Overview
VirtualBank, a division of First Horizon Bank, is headquartered in Memphis, Tennessee, and provides money market accounts and CDs to customers comfortable with banking with an online-only financial institution. It’s an offshoot of the 2020 merger between First Horizon Bank and IberiaBank. A tightly focused bank with limited products such as VirtualBank is ideal if you have minimal bills and transactions each month and prefer to have a holding account to grow your savings. Although VirtualBank’s accounts are limited, you’ll find competitive interest rates.
GOBankingRates named VirtualBank among the winners on its list of the Best Money Market Accounts of 2024.
VirtualBank Review
Here’s a closer look at your VirtualBank account options and which type of individual each is best for.
Money Market Account
A money market account is a combination of a checking and savings account — with limits. Some money market accounts actually let you write checks or use a debit card. VirtualBank’s eMoney Market Special does not — you can deposit checks using the mobile app and link your account to your current bank to transfer funds in and out. However, you are limited to only six pre-authorized, auto, phone, online or mobile transfers per month. If you go over, you’ll incur a $15 fee and subject your account to closure.
The VirtualBank money market account has a low minimum opening deposit of $100, and there are no monthly balance requirements. Although interest is only compounded once a month, rates are higher than most savings account rates, including high-yield accounts, and you earn interest on your entire balance — the primary reasons why Virtual Bank’s money market is a top pick in GOBankingRates’ Best Money Market Accounts of 2024.
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A VirtualBank money market account currently pays an annual percentage yield of 4.75% on all balances. As a digital bank, VirtualBank lets you manage your account all through the website and mobile app 24 hours a day, seven days a week.
CD Accounts
A certificate of deposit is a good way to lock in a rate for a set period, just in case interest rates fall. VirtualBank’s best eCD rates are currently offered on 12- to 36-month terms. However, there are times when you need a short-term CD that protects your savings. With VirtualBank, you have 11 term lengths to choose from, which can be as low as one month and up to 60 months, with rates between and APY. Five-year CDs currently earn 3.51% APY. Interest compounds daily and is paid every month.
VirtualBank has more term options than many banks offer. However, at the time of this writing, eCDs are currently unavailable to new customers.
Banking Experience
Individuals considering VirtualBank will need to feel comfortable banking entirely online, but if you don’t have any time-sensitive or pressing issues, you may find the banking experience positive.
Fees
VirtualBank’s money market account currently has no maintenance fees. However, the bank charges $35 for paid overdrafts and returned items and $10 per day for deposit-to-deposit overdraft protection transfers.
Customer Service
Customer service representatives are available on weekdays only from 8:30 a.m. to 5:30 p.m. ET by calling 877-998-BANK. You can also send a request for a representative to contact you about an issue, but it takes up to two business days to hear back.
Mobile and Digital Experience
The mobile app and website are the heart of banking with VirtualBank. They’re both protected by using encryption and layered security systems. The app provides the following functionalities:
- Transfer money to your accounts at other financial institutions
- Manage accounts
- View transactions
- Deposit checks by taking photos of them
- Sign up for notifications
- Use fingerprint or facial recognition to log in to the app, if supported by your smart device
Only a handful of VirtualBank customers have rated the mobile app. Here’s what they think:
- Google Play: 2 out of 5 stars for difficulty using the app to open an account or contact customer service
- App Store: 3.9 out of 5 stars
Financial Tools
VirtualBank offers several calculators that can help you make important financial decisions. They include:
- How Much Do You Owe?
- Compound Savings
- Retirement Planner
- Mortgage Qualifier
- Home Rent vs. Buy
- Accelerated Debt Payoff
Convenience and Ease of Use
If you don’t have much need for support, you’ll find VirtualBank convenient. You’ll be able to handle most of your banking from anywhere, at any time. However, there isn’t a way to make cash deposits. And you’ll have to wait to contact customer service during regular business hours on weekdays.
How To Open an Account
Opening an account is simple. You’ll need to be a U.S. citizen and provide:
- A government-issued photo ID, such as a driver’s license or passport
- Your Social Security number
- Phone number and email address
- $100 minimum for a money market
- Bank and routing information from your existing bank to fund the new account
Comparable Online Bank Options
Here’s a look at how VirtualBank stacks up to some of its competitors.
Ally Bank
Ally Bank has managed to provide customers with top-notch online banking and a large variety of account options. However, Ally’s money market rate is lower than VirtualBank’s at 4.00% APY.
CIT Bank
VirtualBank no longer has checking accounts available for new customers. CIT Bank’s eChecking option is free, can be opened with just $100 and will pay you interest of or , depending on your balance.
Final Take
VirtualBank is a good place to stash some money and let it grow. It shouldn’t be too much trouble to open an account apart from your current bank and dedicate it to a particular savings goal. You can view your account through the VirtualBank mobile app and transfer funds between accounts to take advantage of competitive rates and avoid overdraft fees.
VirtualBank FAQ
Here are the answers to some commonly asked questions about VirtualBank.- Is VirtualBank legitimate?
- Yes. VirtualBank is a legitimate online bank for customers looking to earn high rates on their savings.
- Does VirtualBank offer free money for opening an account?
- VirtualBank currently has no promotions for opening a new account.
- Can I set up direct deposit for a VirtualBank account?
- You can request direct deposit from your employer and fill out a direct deposit form. Once you do, your employer will arrange the deposit with VirtualBank.
- What is the VirtualBank routing number?
- The VirtualBank routing number is 061120741. You'll need it to set up transfers or direct deposits, along with your bank account number, which can be found when you log in to your account online.
- How do I open a VirtualBank account?
- Go to the VirtualBank website to apply. Have your Social Security number and contact and employment information handy as well as a funding source for your $100 minimum opening deposit.
Daria Uhlig contributed to the reporting for this article.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Dec. 28, 2023.
Article was updated on Feb. 8, 2024 to clarify headquarter location.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
To determine rankings for the Best Money Market Accounts, GOBankingRates looked at the following factors from all banks (excluding neobanks): (1) total assets as sourced from the FDIC; (2) number of branch locations as sourced from the FDIC; (3) minimum deposit to open an account; (4) APY on the money market account; (5) the minimum balance needed to earn the APY; (6) monthly money market fee ratio (percentage based on the minimum to avoid the fee compared to the monthly fee itself); and (7) the average mobile app rating between the Google Play (Android) and Apple app stores. All factors were then scored and combined, with the lowest score being the best. Factors (1) and (2) were weighted 0.5 times, and factor (4) was weighted 4 times.
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