Rabobank Review

Rabobank Personal Savings

0.03% APY

Rabobank has a firm presence in the state of California, with more than 100 branch locations across the state. The bank offers a number of savings account and checking account options, as well as a money market account (MMA) and several certificates of deposit (CDs).

Membership in the bank’s premium checking accounts can mean significant discounts on a range of products from safe deposit box rentals to mortgages. In addition, you can link your savings and checking accounts to receive overdraft protection, and you’ll have access to a national network of ATMs.

However, those same premium accounts come with pretty high monthly service fees, and interest rates across the bank’s offerings leave something to be desired. The two special CD options are the exception to this, each with competitive rates.

Products Offered

Rabobank Interest Rate Comparison

RaboBank Overview

Rabobank’s 119 locations in California make it a fairly large presence in the state. The bank only serves Californians, so if you don’t have a California address and a California driver’s license, you’ll have to look elsewhere.

Although this article will focus on the personal banking options, Rabobank also offers business banking services, wealth management services and U.S. agriculture lending. In the personal realm, the bank offers three types of savings accounts, three checking accounts and several different CDs. Read on to learn more about each of these options.

RaboBank Account Features

The majority of deposit accounts at Rabobank are accessible online or via the Rabobank mobile app. Accounts also come with a Visa debit card or ATM card, depending on the type of account.

With the exception of CDs and the Minor Savings accounts, the accounts at Rabobank have monthly service fees, which are waivable provided you meet certain account requirements that vary in difficulty. You may also face fees for excessive transactions with the savings and money market accounts.

Personal Savings Account

This is the basic savings account at Rabobank. The fairly standard $100 minimum opening deposit is achievable for most bankers. The 0.01% interest on balances below $100,000 is quite low, especially compared to the best savings account rates available today. Interest is both compounded and credited to your account on a monthly basis. If you also have a Rabobank checking account, you can link the two and gain access to overdraft protection. Like other savings accounts, this account limits you to six preauthorized or automatic transfers/withdrawals per statement cycle. If you exceed that limit, you’ll be charged a $5 fee for each transaction. If you exceed the limit repeatedly, you’ll run the risk of the bank reclassifying your account.

Minor Savings Account

In order to open this account, you must be between the ages of five and 18 and share ownership with at least one parent or guardian. The $1 minimum opening deposit means there’s essentially no barrier to entry. Interest is compounded and credited to your account monthly, and you won’t have to worry about a monthly service fee. Once you turn 18, your account will be converted into a personal savings account.

Money Market Savings Account

The Money Market Savings account gives you access to slightly higher interest rates than the personal savings account, but that access comes with a couple of tradeoffs. First, you’ll face a higher monthly fee if your average balance falls below $2,500. Second, you’ll need at least $10,000 in the account to get a higher rate (0.04% instead of 0.03%), and when dealing with that kind of money, you’re almost always better served by investing in a higher-rate option, even if access to your money is more limited. Interest is compounded and credited monthly.

Certificates of Deposit

Rabobank offers certificates of deposit (CDs) with term lengths ranging from 30 days to five years. The $2,500 minimum deposit requirement could be prohibitive for some, and the standard rates offered are middling, although they increase slightly if you invest more than $50,000. Interest compounding frequency can vary between monthly, quarterly or annually depending on the specific CD, so make sure to ask the bank how frequently your interest will compound.

If you need to withdraw your money before the maturity date, you’ll have to pay an early withdrawal fee that will vary depending on the term length of your CD. For terms less than 30 days, you’ll have to pay seven days worth of interest on the amount you’re withdrawing. For terms of 30 to 90 days, the penalty will be 30 days worth of interest. For terms of 90 days to one year, the penalty will be three months worth of interest. For terms of more than one year, the penalty will be six months worth of interest.

Special Certificates of Deposit

Rabobank also offers two special CDs with much more competitive rates than their standard offerings. The distinction is that these will auto-renew at the standard rate after the term expires, so the 11-month will renew as a 12-month with a 0.25% APY and the 23-month will renew as a 24-month with a 0.25% APY. The same early withdrawal penalties that apply to standard CDs also apply to these special rates.

Essential Checking Account

Rabobank doesn’t offer a free checking account option (one with no monthly service fee), so the Essential Checking account is the closest thing they have. The $7 monthly service fee isn’t negligible, but provided you make at least one deposit each month, you won’t have to worry about paying it. If you would like to receive paper statements instead of estatements, you’ll have to pay $2 per statement cycle.

Advantage Checking Account

This checking account comes with a higher monthly fee that’s a bit harder to waive, and it offers a range of other benefits in exchange. These include discounts on personal loans and mortgages as well as complimentary checks. The bank will also refund you for two out-of-network ATM fees during each statement cycle.

Premier Checking Account

If you’re looking for an interest-bearing checking account at Rabobank, this is the one. Interest will be compounded and credited every month, and the rate will depend on your account balance, so try to keep your balance above $2,500. You’ll also gain access to an even wider range of benefits than with Advantage Checking, such as larger discounts for personal loans and safe deposit box rentals, complimentary cashier’s check and complimentary incoming wires. The bank will also refund all out-of-network ATM fees you might encounter.

Where Can I Find Rabobank?

Rabobank operates 119 branches throughout the state of California. You will find a branch in all major cities as well as surrounding areas, although most branches are located on the west coast of the state.

What Can You Do Online With Rabobank?

You can manage your Rabobank accounts both online through its website or on your phone through its mobile app. The Rabobank mobile app has a 4.8 star rating on the Apple App store based on just shy of 4,000 reviews.

How Do I Access My Money?

You can access funds online or via the mobile app. You can also make deposits or withdrawals at a national network of ATMs. Even if you use an out-of-network ATM, some Rabobank accounts offer refunds. And, of course, you can visit a Rabobank branch to access funds.

How Can I Save More Money With RaboBank?

The best interest rate of any Rabobank offering is the 23-month special CD at 2.40% APY. This is a very competitive rate for that term length, especially among other brick-and-mortar banks. Other than the special CDs, however, rates at Rabobank are pretty low.

What’s the Process for Opening an Account With RaboBank?

You can apply for most accounts on the Rabobank website, and you can also open accounts by visiting a branch in person. To apply, you’ll need enough money to meet the minimum opening deposit requirement for your desired account as well as California driver’s license or ID card. You’ll also need to provide your Social Security number and your California residential address.

What’s the Catch?

Like we mentioned at the beginning of this article, Rabobank is only for California residents. Further, rates for the savings and money markets accounts are less than competitive, with much higher rates available online or even at other California banks. Finally, the checking accounts available have fairly high monthly service fees, although the Essential Checking account’s fee is easily waivable.

Bottom Line

For California residents who are looking for a combination of online and in-person access to their bank accounts, Rabobank could be a good option to consider. Although the interest rates aren’t the most competitive, the bank does offer some attractive perks, especially if you link multiple accounts together.