Bank Money Market Accounts Better than Money Funds, Savings Accounts, and CDs?
August 15, 2008
One of the best places to park cash today might be bank money market accounts which offer yields that beat mutual fund money market accounts and offer more flexibility than savings accounts or CDs. Money funds offered by the largest mutual fund companies like Fidelity, Vanguard, and Dreyfus are currently yielding between 2.00% and 2.45% - well below the large number of +3.00% yields available from online banks on their money market accounts. While savings accounts do not allow check-writing privileges and CDs have penalties for early withdrawal, bank money market accounts offer limited check-writing and no penalties for withdrawals. Also in an increasing-rate environment (which is widely anticipated for the remainder of 2008 and into 2009) a consumer has an advantage in a money market account because banks typically increase their money market rate quicker than their savings rates and the consumer is not locked-in to a lower rate on a CD. It is also easier to switch banks to find a higher rate if the original bank does not increase their rates accordingly.
Top 50 Highest Money Market Rates posted on Money-Rates.com
EverBank 4.76% APY (introductory offer), minimum $1,500
First East Side Savings Bank 3.75% APY, minimum $100,000
TriState Capital Direct 3.75% APY, minimum $95,000
Corus Bank 3.85% APY, minimum $10,000
Union Federal Savings Bank 3.75% APY, minimum $1
Wachovia Bank 3.75% APY, minimum $10,000
IndyMac Federal Bank 3.70% APY, minimum $50,000
Imperial Capital Bank 3.65% APY, minimum $100,000
Virtual Bank 3.56% APY, minimum $50,000
Zions Bank 3.56% APY, minimum $2,500
Amegy Bank of Texas 3.55% APY, minimum $10,000
Nationwide Bank 3.52% APY, minimum $1,000
Seacoast Commerce Bank 3.52% APY, minimum $25,000
Century Bank Direct 3.57% APY, minimum $1,000
Flagstar Bank 3.50% APY, minimum $1
Bank Mutual 3.51% APY, minimum $25,000
Bank Excel 3.50% APY, minimum $10,000
OnBank 3.50% APY, minimum $1
Bank of Internet 3.46% APY, minimum $1
California First National Bank 3.40% APY, minimum $1
Intervest National Bank 3.40% APY, minimum $2,500
Kaiser Federal Bank 3.40% APY, minimum $75,000
Imperial Capital Bank 3.40% APY, minimum $50,000
Umbrella Bank 3.40% APY, minimum $1,000
AIG Bank 3.35% APY, minimum $50,000
WT Direct 3.31% APY, minimum $1
Virtual Bank 3.30% APY, minimum $25,000
Greystone Bank 3.30% APY, minimum $100,000
Bank Provident 3.30% APY, minimum $1
H&R Block Bank 3.25% APY, minimum $50,000
Acacia Federal Savings Bank 3.25% APY, minimum $125,000
M&T Bank 3.25% APY, minimum $1
Amegy Bank 3.20% APY, minimum $10,000
Advanta Bank 3.20% APY, minimum $50,000
AIG Bank 3.20% APY, minimum $10,000
Earthstar Bank 3.16% APY, minimum $100,000
Discover Bank 3.14% APY, minimum $50,000
GiantBank 3.11% APY, minimum $1,000
Advanta Bank 3.10% APY, minimum $50,000
Imperial Capital Bank 3.10% APY, minimum $25,000
Amboy Direct 3.05% APY, minimum $30,000
Virtual Bank 3.05% APY, minimum $10,000
Earthstar Bank 3.04% APY, minimum $75,000
KeyDirect 3.00% APY, minimum $1
GMAC Bank 3.00% APY, minimum $500
Domestic Bank 3.00% APY, minimum $2,500
First Banking Center 3.00% APY, minimum $250,000
Security Savings Bank 3.00% APY, minimum $1,000
Capital One Bank 3.00% APY, minimum $1
Stonebridge Bank 3.00% APY, minimum $1
Transportation Alliance Bank 3.00% APY, minimum $1,000
MetLife Bank 3.00% APY, minimum $25,000
UFB Direct 3.00% APY, minimum $50,000
Online Savings Accounts
18 August 2008 at 11:14 am
Anonymous - It's 6 per month, some do 3, but that's at the bank level, not an FDIC Requirement
Savings Toolbox
Anonymous
17 August 2008 at 6:44 pm
how many checks can you write per month with these high-rate accounts? I have heard 6 months and I have heard 3 months?
Anonymous
15 August 2008 at 11:04 am
thank you for the list. I just found 3 new banks not listed on bankrate or bankaholic. Keep up the good work.