Best Bank Money Market Rates vs Money Fund Yields

A quick look at the top yielding bank money market account rates in comparision to some of the money fund yields offered by the nation’s largest mutual fund companies indicates that bank money market account yields are siginificantly higher. Bank money market accounts and mutual fund company money markets (money funds) both offer accountholders the ability to park cash and get paid a variable rate of return. Both types of investment offer the ability to withdraw funds at anytime with limited checkwriting privileges or through account transfers. The FDIC insures (up to $100,000 per depositor) a bank money market account, while mutual fund companies (in most cases) have backed their own money fund by historically maintaining a $1 net asset value even if the underlying securities depreciate. Listed below are recent yields and rates on each type of cash holding with links to the corresponding bank or mutual fund company:

Bank Money Market Rates

IndyMac Bank, 4.05%, $1,000 minimum

Corus Bank 4.00% APY, $10,000 minimum

EverBank, 4.01% APY, $1,500 minimum

Bank Mutual, 3.75% APY, $25,000 minimum

Flagstar Bank, 3.65% APY, $1 minimum

Imperial Capital Bank , 3.65% APY, %100,000 minimum

California First National Bank, 3.60% APY, $1 minimum

Century Bank Direct , 3.57% APY, $1,000 minimum

Countrywide Bank, 3.50% APY, $50,000 minimum

Kaiser Federal Bank , 3.50% APY, $75,000 minimum

Bank of Internet , 3.46% APY, $1 minimum

AIG Bank , 3.45% APY, $50,000 minimum

Intervest National Bank, 3.45%, $2,500 minimum

Money Fund Yields

Touchstone Money Market Fund 2.90%, minimum $2,500

Dreyfus BASIC Money Market Fund 2.83%, minimum $25,000

Putnam Money Market Fund 2.67%, minimum $500

Fidelity Cash Reserves 2.68%, minimum $2,500

PayPal Money Market Fund 2.61%, minimum $1

Fidelity Money Market Fund 2.58%, minimum $25,000

TIAA-CREF Money Market Fund 2.52%, minimum $2,500

Schwab Value Advantage Money Fund 2.52%, minimum $25,000

Thrivent Money Market Fund 2.51%, minimum $1,500

AARP Money Market Fund 2.50%, minimum $100