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%.

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