Bank money market account rates slipped for the week ending October 16, 2009.  The average of the best money market account rates moved lower by two basis points or 2/100 at the close of the week.  The average yield for the top ten best bank money market rates ended at 1.65% down from the prior week’s average interest rate of 1.67%.

The best bank money market rate available nationwide continues to be the product of Flagstar Bank.  Flagstar Bank runs a promotional money market account, it has been labeled a promotional account for well over a year, with an interest rate of 1.81%.

Following Flagstar’s lead is the premium money market account promoted by Hanmi Bank of California.  Hanmi Bank has a premium online money market account that has an interest rate of 1.76% but requires a $50,000.00 minimum deposit.  This bank money market account is advertised as an online bank account; however, Hanmi Bank has several bank branch locations as well.

The third highest money market account rate available nationally is offered by two banks.  Bank of Internet as well as Nationwide Bank offer money market account rates of 1.70%.  Rounding out the top five banks is Ally Bank which offers an online money market account with an interest eat of 1.65%.

Although the average of the top ten money market account rates changed by only two basis points, four banks reduced the yield on their money market products.  The interest rate reductions were quite mild which led to the small reduction to the average yield. 

Of the top five banks, only Ally Bank changed the yield on their money market account.  Ally Bank had reduced the interest rate earned by five basis points from 1.70% down to 1.65% by the end of the week.

The interest rate reduction in money market accounts was matched by bank savings accounts which also dropped on average by two basis points.  Bank CD rates fared much better with most certificate of deposit maturities ending the week with higher yields.

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