rF LiveBroadcast with Gary Zimmerman of MaxMyInterest
Who is MaxMyInterest?
MaxMyInterest (Max) is a cash management solution that helps maximize yield and is FDIC insured. MaxMyInterest is not a bank or a financial institution, but it is a service that helps people intelligently manage the cash that sits in their own bank accounts.
Gary Zimmerman, the Chief Executive Officer and Founder of MaxMyInterest, sat down with rebel Financial President Phil Ratcliff to talk about his company.
Gary created Max from his own experiences during the financial crisis. He was nervous that his cash above the FDIC limit might be exposed, so he wanted to find a way to keep his cash safe.
“Max is really simple, it’s your own money sitting in your own bank account. What our software does is it automatically manages those bank accounts so that whatever bank is willing to pay you the highest interest rate gets your money.”, says Gary.
How it works
Gary gave a great analogy for how MaxMyInterest works. If you want to buy an airline ticket from Chicago to LA, the travel agency will give you the prices between each airline, but that price can change between now and the time of your flight without your knowledge. Max would continuously be looking at the prices and if a better price became available after that initial price, you would get switched over to the better price automatically. That’s what Max does with banks.
With Max, you’re able to maximize your interests with the banks. “You don’t need to be beholden to a single banking relationship. You can have multiple relationships”, said Gary.
Initially, the only catch with this was the time it took to set up the accounts; however, that problem was solved with their application creation, Max Common Application.
Max Common Application
Patented in December, the Max Common Application won a wealthmanagement.com award for the best cash optimization solution.
With this application, clients are connected directly to the banks. Now, clients or their financial advisors can fill out a single form and open up multiple bank accounts in less than 60 seconds. No logins, no passwords, no trial deposits.
Last fall, Max decided to go even further with checking accounts as well. They’ve partnered with one of their banks to create a no minimum, no fee, high yielding checking account that includes free ATM access and free wire transfers anywhere in the world.
For example, let’s say we have a client using Wells Fargo for the checking account and they want to keep at least $25,000 in the account. When the amount in the account exceeds $25,000, the extra money will start being placed into online savings accounts with the best interest rates within the FDIC insurance limits. If the amount in the checking account falls below $25,000, then money will automatically be pulled from one of the savings accounts to bring it back up.
Much of this platform is customizable to help meet the different needs of clients. There are no minimum balance requirements, but most customers tend to have $50,000-$5,000,000 in cash. Gary said some customers have as low of a balance as $10,000.
There are multiple banks to choose from and there will be two new additions before November.