VirtualBank Referral | Get your $20 bonus today

Are you looking for a VirtualBank referral bonus? VirtualBank will give you a $20 bonus when you open a new, no-fee, APY eMoney Market online savings account with a referral and $100.

How to get your $20

To receive the bonus, you must be sent an invitation email by an existing account holder. Just fill in your first and last name and email address using the form below, and I will send you one of my referral invitations. The form simply sends the contents of the input boxes to my email address, nothing more.

Only U.S. residents with a valid social security number and who are currently residing in the U.S are eligible for this account. A minimum opening balance of $100 is required to receive the $20 bonus.

Your name and email address will be used solely to send you the referral. I don't like spam either.

Opening your new account

You should receive the invitation email within a few hours after submitting the form above. You will then have 30 days to use the link contained in the invitation email to open your account. After the 30 days have expired, the $20 bonus will no longer be valid and you will have to request another invitation.

Opening the eMoney Market account is similar to opening an account at any other bank. You will need to provide your name, your Social Security number, your regular bank's name and routing number, and a personal checking account number from which the minimum opening deposit of $100 will be withdrawn.

Once your application has been completed, the $20 bonus will be deposited into your money market account. For security purposes, the initial $100 deposit and the bonus won't be available for withdrawal for 30 days, but subsequent deposits do not have this limitation. This $20 bonus and subsequent referral bonuses and interest will be reported as interest on Form 1099-INT at the end of the year, and all necessary income tax information will be mailed to you at tax time.

The VirtualBank eMoney Market savings account has no minimum balance requirements (after a $100 minimum opening balance) and no annual or monthly fees. Interest is compounded daily and credited monthly.

How the referral program works

Once you have established your online savings account, you will be able to send referral emails to friends. You and your friend will each earn $20.00 if your friend applies for and opens an eMoney Market account with the link provided in the referral email. This offer will be available to your friend for 30 days after the date you send the email. To qualify for the bonus, your friend must open a new eMoney Market account and must not be an existing VirtualBank or Lydian Private Bank accountholder. The $20.00 referral gift will be deposited into your account upon the opening of your friend's account but will not be available for withdrawal for 30 days. These funds will also be reported as interest on your 1099-INT.

Accessing your account and transfering funds:

The Virtual Bank account is linked to an existing checking account at a traditional bank. Transfers between the online savings account and checking account(s) are made electronically through the web site. Electronic transfers between accounts usually take 2 to 3 business days. There are no fees for these transactions. Deposits can also be made via direct deposit from your employer, but direct deposit is not required to open or maintain an account. You are allowed up to six electronic withdrawals per month (the industry standard, check your current institution's policy).

The VirtualBank web site

ING vs. VB

For a measured comparison of the two banks' referral programs, read my post Comparing Online Banks' Referral Programs. It offers some statistical analysis and a review of what you can expect to earn.

ING Direct is offering a $25 bonus for opening a new Orange Savings account, an online savings account similar to the eMoney Market account. The minimum opening balance required to earn the ING account bonus is $250, which is more than double that required for the VB bonus. The ING account referral program pays $10 for each successful referral, up to a maximum of 25 referrals. Currently, the APY for the ING Orange Savings account is . If you're interested in this account, you can use a similar form at my ING Direct referral page to request an invitation email.

Interest rates comparison: eMoney Market vs. the competition

There are a lot of ads for CDs and money markets in the papers, so how does the eMoney Market account compare? The current APY for the eMoney Market savings account is , a higher return than most short-term certificates of deposit. You may see CDs with higher yields, but they almost always require a minimum investment of $10,000 or more and tie your money up for 6 months or longer. Many of the "Manager's Special" money market accounts advertised have some pretty substantial annual fees attached, which may completely negate any interest earned, and I very much doubt you'll find a savings account that comes anywhere close.

Online institutions are able to offer higher yielding products because they have lower operating expenses. The internet banks don't have the financial burdens of property taxes, payrolls, health and benefit plans, and similar expenses that traditional banks must recoup. They can also be more selective with their products and avoid expensive checking accounts and low-balance savings accounts. Therefore, the "spread" between their loan rates and deposit rates can be smaller, leading to higher rates paid on deposits and lower rates for loans. If you're in the market for a mortgage, you may want to look at www.virtualbankmortgage.com

What do I really gain?

The real benefit to directly depositing a percentage of every paycheck into a high-yield money market account is that you are less likely to spend it. Learn to live on less than you earn and save the difference. With a modest reduction of 8.33% from each check, you'll save a full month's pay each year.

Experts suggest that you try save enough to cover three to six months' worth of expenses. By instructing your employer to directly deposit a percentage of each paycheck into a high-yield money market account before you have the opportunity to spend it, you are earning interest on that money at an extremely competitive rate and creating a valuable emergency reserve, vacation fund, or future down payment on a car or home. You can improve your financial condition by taking the first step towards productive saving by opening a savings account today.