With the lowest interest rates in a generation, it can be difficult to find a high interest yielding money market account in 2010. Interest rates for money market savers can depend upon your preference for online versus local institutions. Here are some suggestions for high interest yielding money market accounts.
High interest yielding online money market accounts
Money market savers who are comfortable with an online account will find higher interest rates for their money market accounts. There are currently two major online banks offering high interest yielding money market accounts:
Ally Bank. 1.08% APY money market account rate. $0 fees. No minimum balance requirement. $1 to open.
Everbank. 1.11% APY money market account rate. $5000 minimum balance to avoid $8.95 monthly fee. $5000 to open (to avoid fees).
Ally Bank offers a 1.08% APY money market account with no fees, no minimum balance requirement and a $1 minimum amount to open. This is the highest current interest rate for a money market account without balance and fee requirements. If you are able and willing to keep a minimum balance of at least $5000 in your money market account, Everbank offers a slightly higher interest rate at 1.11% APY. If you are interested in the higher interest account, it is very important to maintain the $5000 minimum daily balance.
If you do not maintain the $5000 minimum (for even a day), you will incur a monthly fee that negates all of the advantage of having a high interest rate money market account. The Ally Bank money market account is preferable if you are unsure about maintaining the minimum balance requirement.
High interest online money market accounts are best designed for depositors who are comfortable with internet-only access to their money. If you prefer to open a money market account at a physical retail bank, you should consider a high interest yielding brick-and-mortar money market account.
High interest yielding brick-and-mortar money market accounts
Depositors who prefer having a money market account at a retail bank branch will find significantly lower interest rates than are available online. These accounts have daily minimum balance requirements so be aware that incurring a monthly fee will quickly defeat the purpose of having a money market account. Here are the current interest rates offered by two large national banks with a widespread branch network.
Bank of America. 0.10% APY money market account. $10 monthly fee unless the daily minimum balance exceeds $5000. $5000 minimum to open (to avoid fees).
Citibank. 0.10% APY money market account. Up to $20 in monthly fees unless the daily minimum balance exceeds $10,000. $10,000 minimum to open (to avoid fees).
If you are opening a money market account at a retail branch, you have the benefit of a large ATM network, access to branch personnel, and the ability to make deposits at a teller. Make sure that you are aware of the cost of these services. Online money market accounts pay significantly higher interest rates, but do not provide the same services as physical branch accounts. Be sure to read the full disclosures of your money market account and understand the minimum balance requirement to avoid fees.