The average rate on the best bank money market accounts, as reviewed in the weekly bank rate survey performed by SelectCDrates.com, held steady this week at 1.34 percent. With bank money market rates holding up rather well, these accounts continue to compare quite favorably to alternative investment that are highly liquid and secure.
With the best six month CD rates averaging 1.24 percent, money market accounts which offer greater liquidity but do not provide a fixed rate of return are proving to be a valuable substitute to bank CD investments. Money market accounts as well as the savings accounts listed in the SelectCDrates.com bank rate survey are insured up to $250,000 per depositor by the FDIC.
Low inflation rates and limited demand for funds due to the slow economy is keeping a lid on bank CD rates and since bank money market accounts are variable rate accounts, if rates fall or pinch a bank’s bottom line the option to decrease these interest rates is always an option the bank can exercise to protect their margins and thus enables the bank to initially be more aggressive on the rates for these accounts.
While the average rate for the top ten best money market account rates is at 1.34 percent, the highest rate available remains well above the average rate. The best bank money market account rate continues to be a product of Redneck Bank which is the Internet Banking Division of Bank of the Wichitas based in Oklahoma. Redneck Bank promote a money market account with a rate of 2.00% for deposits up to $35,000.00.
Following the category leader, two banks offer the second highest money market account rates at 1.30%. Both, Nationwide Bank and NewDominion Bank, advertise money market account rates at 1.30%. Just one basis point lower is the money market account of Ally Bank which offers a yield of 1.29%.
Another three basis points below the Ally Bank account is the bank account from EverBank which has a blended average rate, which takes into consideration the 90 day teaser rate, of 1.26%. Four banks share the fifth highest money market account rate available. Bank of Internet, AmTrust Direct, Discover Bank and One West Bank market the money account with an interest rate of 1.25%. The last bank on the list of the top ten best money market accounts is Giant Bank with an account that currently yields 1.21%.
Bank money market account rates followed other short term interest bearing financial instruments and dropped in yield for the week ending February 5, 2010. The average rate on the top ten best bank money market accounts rates was down two basis points or 2/100 of a percent for the week. The average yield on the best money market account rates available nationally fell to 1.40% from 1.42% in the prior week.
The highest bank money market rate available nationally tumbled along with the average. The highest money market rate now stands at 1.55%, down from 1.60% in the preceding week. The highest money market rate continues be the product of Bank of Internet, with a slightly lower top rate for the week at 1.55%.
The second best rate remains at 1.50%. This money market rate is available at NewDominion Bank. Following this rate by one basis point, Ally Bank offers a money market account that has a yield of 1.49%. The next best interest rate available falls four basis points lower at 1.45% and can be found on the money market account promoted by Nationwide Bank.
Another four basis points down is the money market account promoted by Giant Bank which earns an interest rate of 1.41%. Discover Bank falls just below this offer with online money market account that yields 1.40%.
The remaining four banks on the list take a fairly large step down in yield. iGOBanking offers a money market account with an interest rate of 1.31%. Two banks, AIG Bank and H & R Block Bank, trail by one basis point with money market rates at 1.30%. The final bank on the list of the top ten best money market account rates is EverBank which offers a money market account with a yield of 1.26%.
Four banks reduced their rates from the previous week. Stonebridge Bank dropped off the list week due to their rate reduction and was replaced by EverBank. Other rate reductions were performed by Bank of Internet, Discover Bank and Nationwide Bank. There were no rate increases for the week.
The steady decreases in yields on bank money market account rates took a break this week. While most bank rates headed south again this week with the exception of the long term, five year CD rates which gained some yield for the week, money market account rates held firm. The average for the top ten best bank money market account rates was unchanged from the previous week. The average for the highest bank money market account yield available nationwide is 1.42%.
Not only did the average rate for the top ten best bank money market rates remain unchanged for the week, but the composition of the entire list was unaltered week over week. The highest money market account rate continues to be the online bank account offered by Bank of Internet with an interest rate of 1.60%. Three banks share the second best rate available nationally at 1.50%. The three second best rates come from Nationwide Bank, NewDominion Bank and Discover Bank.
Ally Bank offers a money market account at 1.49% that falls into third position. This money market account is followed by Giant Bank which promotes a money market account that earns a rate of 1.41%. A ten basis point drop behind Giant Bank is the online bank account of iGOBanking that has a yield of 1.31%.
The final three banks on the list of the top ten best bank money market accounts includes Stonebridge Bank, AIG Bank and H & R Block Bank. All three of these banks have money market accounts with an interest rate of 1.30%.
As the economy very slowly works through this recent slowdown ( disaster ), rates are not expected to rise in the short term. Since money market account rates are short term rates, there is less of an expectation that these bank rates will move up.
The enclosed tables allows investors to comparison shop for rates, yields and minimum deposit amounts to decide which money market account option best fits their needs. Each listing has the web address and phone number to call these financial institutions for additional information.
Bank money market rates dropped modesty over the previous week. The average rate on the top ten best bank money market rates was down by just one basis point or 1/100 of a percent bringing the average yield down to 1.42% from 1.43% in the previous week. In light of the more significant reductions in other interest bearing bank accounts such as CD rates and savings account rates, the rate reduction on money market accounts was quite mild.
The highest yielding bank money market account stands at 1.60%. The best bank money market rate is available at Bank of Internet which offers the 1.60% rate as an online bank account. Following the category leader, three banks market money market accounts with interest rates at 1.50%. Discover Bank, NewDominion Bank and Nationwide Bank promote accounts yielding 1.50%.
Ally Bank’s money market account is just one basis point lower at 1.49%. This bank rate is eight basis pints ahead of the fourth highest rate. Giant Bank holds this position with a money market account rate of 1.41%.
Rates on money market accounts step down quite a bit in the second half of the list. The fifth highest rate is ten basis points beneath the fourth best bank rate. iGOBanking, the seventh bank on the list, has a money market account rate at 1.31% holding the fifth best rate overall. Only three banks remain on the list of the top ten bank money market account rate list, all three of these banks offer the same interest rate on their accounts. H & R Block Bank, AIG Bank and Stonebridge Bank promote money market accounts with interest rates at 1.30%.
For the week, just two banks reduced their rates from the previous bank. Giant Bank dropped their money market account rate by five basis points from the previous week while AIG Bank trimmed their account by just one basis point.
Bank money market account rates moved lower to start to 2010 as did most all bank savings rates. The average rate of the top ten best bank money market accounts rates closed the week of January 8, 2010 at 1.43%.
The highest bank money market account rate comes from Bank of Internet which offers a money market account with an interest rate of 1.60%. The next best bank rate is available at three banks and lags ten basis points or 10/100 of a percent behind the category leader. Nationwide Bank, NewDominion Bank and Discover Bank all offer money market accounts that yield 1.50%.
One basis point behind the trio of banks in second place is the money market account of Ally Bank. Ally Bank promotes an online money market account that has an interest rate of 1.49%. Giant Bank follows with a money market account that earns a rate of 1.46%.
There is a significant fall off between the top six banks and the remaining banks on the list of the top bank money market accounts. Following the 1.46% rate of Giant Bank, two banks offer accounts that earn 1.31%. AIG Bank and iGO Banking have money markets at 1.31%. The reaming two banks on the list, Stonebridge Bank and H & R Block Bank, promote money market accounts that have yields at 1.30%.
Low interest rates on money market accounts and various bank savings products have been held down by the lack economic growth, job growth and low inflation. Now that the prospects of economic improvement in 2010 has many forecasts calling for higher interest rates, rate may reverse course and start to rise but this is far from a certainty as the Fed had made their position clear that their intent to keep interest rates low for a considerable period and refrain from premature rate hikes.
Treasury rates have gyrated wildly in the since the beginning of December and each time rates rise they manage to settle right back down within a short period of time. Without Treasury rates making a sustained move higher it is less likely that bank rates will move ahead.
This is an excellent time for investors to shop for the best money market account rates or savings account rates or even short term CD rates to be prepared for future interest rate movements.
The average of the best bank money market account rates slipped for the week ending November 27, 2009. The average for the top ten best money market rates was down by four basis points or 4/100 of a percent for the week, driving the yield down from 1.58% in the prior week to 1.54% currently.
The highest bank money market rate continues to be offered by Flagstar Bank however, Flagstar has reduced the rate on their promotional money market account from 1.80% to the present rate of 1.70%. The Flagstar Bank account still holds as the best money market account rate available nationally.
The second highest money market rate comes from Bank of Internet which did not alter their top money market account, leaving the rate at 1.65% week over week. Following this rate by 10 basis points is the bank money market account marketed by Ally Bank which has an interest rate of 1.55%.
Only four basis points behind Ally Bank are the money market accounts of EverBank and Giant Bank. Both, EverBank and Giant Bank promote money market accounts that yield 1.51%. Three banks have accounts that yield just one basis point less. Discover Bank, NewDominion Bank and Nationwide Bank have money market accounts currently paying 1.50%.
The list of the top ten highest money market account rates wraps up with Century One Bank which promotes an account that yields 1.49% and AIG Bank which markets a money market account with an interest rate of 1.46%.
The top ten list for bank money market account rates changed rather dramatically from the prior week. Four out of ten banks reduced their rates over the week. One bank dropped off the ten list altogether, which of course made room for one new entry. Century One Bank was added to the list replacing the loss of Hamni Bank’s money market account offer.
None of the banks on the prior week’s list increased their rates and even Century One Bank was not the result of a rate increase by the bank, the bank had been offering that rate for some time it simply was not a sufficiently high enough rate, until now, to be listed as one of the top ten highest money market account rates available nationally.
The best bank money market account rates fell by one basis point or 1/100 of a percent for the week ending October 29, 2009. The average yield of the top ten best bank money market account rates was down from 1.63% in the previous week to 1.62% this week.
The best bank money market rate comes from FlagStar Bank with an interest rate of 1.81%. FlagStar Bank is a regular bank rate leader and has maintained this money market rate for several months without change. Hanmi Bank follows distantly behind with a money market account that has minimum deposit of $50,000.00 and an interest rate of 1.76%.
The third highest yielding money market account rate is available at two banks. Bank of Internet and Nationwide Bank both offer money market accounts that yield 1.70%. Both of these marketed account rates remained unchanged from the prior week.
Giant bank promotes the next highest money market account rate with a bank account that yields 1.56%. This rate is followed by Ally Bank and Intervest National Bank which offer money market account interest rates of 1.55%. Two more banks, EverBank and AIG Bank fall four basis points back with bank rates set at 1.51%. NewDominion Bank wraps up the top ten best money market account rates with a money market account that has an interest rate of 1.50%
For the week, three banks reduced their rates where none of the interest rate reductions being significant large enough to alter the bank names on the list. The rate reductions at Ally Bank, Intervest and AIG allowed the banks to remain on the top ten best bank rates even with the lower interest rate offers.
The best bank money market account rates slipped modestly for the week ending October 23, 2009. The average of the top ten best money market account rates was down by two basis points or 2/100 of a percent to close the week. The average bank money market account yield stood at 1.63% down from the previous weeks’ average of 1.65%.
The highest bank money market account is available at Flagstar Bank which offers a money market account with an interest rate of 1.81%. Flagstar’s rate is unchanged from the prior week and has remained the market leader for consecutive weeks.
Following Flagstar’s lead is a money market account promoted by Hanmi Bank that has an interest rate of 1.76%, this rate is also unchanged from the previous week. The Hanmi Bank money market account rate does require a substantial, $50,000.00 minimum deposit. The top three bank rates include the money market accounts of Nationwide Bank and Bank of Internet which both offer money market account rates at 1.70%. Rounding out the list with the top five banks is the money market account of Ally Bank which yields 1.65%.
None of the top five banks altered their money market account rates over the week. Of the top ten bank money market accounts, three banks in the bottom half of the list reduced their interest rates. Two banks reduced their bank rates sufficiently large enough to fall off the list altogether. None of the top ten bank rates changed due to an interest rate increase on their money market accounts.
Though the only bank rate changes were present in the bottom half of the list and the highest rate remained intact, the changes nonetheless were greater than normal. Money market account holders should compare the top offers as well as the averages along with the best savings account rates to be sure an obtain the current highest rate.
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.
Bank money market account rates fell once again for the week ending October 9, 2009. The average yield on the best bank money market rate available nationally was down by three basis points or 3/100 of a percent at the close of the week.
Flagstar Bank retained the top spot, with the highest money market rate. Flagstar Bank promotes their Express Money Market Promo account with an interest rate of 1.81% for all money market deposit amounts. The bank describes this money market account as an account that offers the convenience of check writing and online banking with no service fees or minimum balance.
The second best money market rate comes continues to be available at Hanmi Bank. Hanmi Bank markets an online money market account that has a hefty, $50,000.00 minimum amount balance but yields an attractive 1.76%. Hanmi Bank is the largest Korean-American Bank in the United States. All Hanmi Bank branches are located in California.
The third best rate on a money market account is offered by three banks that are primarily online only banks. Ally Bank, Bank of Internet and Nationwide market bank money market accounts with interest rates at 1.70%.
The greatest rate reduction on the top ten money market rate list came from OneWest Bank. OneWest offers a very competitive money market rate that currently stands at 1.65% for balances in excess of $10,000.00 however; this money market rate was at 1.75% for several weeks prior to the recent rate drop.
The top ten money market account rates start with the highest interest rate of 1.81% and drift down to 1.60%. Though bank money market accounts have similar attributes to bank savings accounts, the top ten bank money market account rates is separately identified form the top ten bank savings rates.
To compare the best bank rate and bank account for your needs be sure to investigate the top ten bank savings account rates as well as the top short term bank CD rates to evaluate all options for the best bank rates.