Any traditional bank tends to pay a very low-interest rate on money market accounts. The best money market rates can be found on Internet banks, and these pay 1.30% or more. This can be understood from an example: if a person puts in $50,000 in a bank which gives an interest rate of 0.03%, the interest earned in a year would then only be $15. However, if the same amount of money is put in an account giving 1.30% interest, the amount will go up to $675. An online money market account can be opened and funded in less than 10 minutes. Some of the banks with money market accounts paying the best money market rates have been listed below:
This is a division of Bofi Federal Bank, a public traded and FDIC insured bank Internet banks based in San Diego. This bank has become increasingly popular as they offer high interest rates with up to money market rates up to 1.41%. However, an investor has to keep a minimum amount of $5,000 in the account so as to avoid the monthly maintenance fee of $10.00. The investor will be issued a Visa debit card and will also have access to limited check writing. If investors wish to keep money in such money market accounts, UFB Direct could be one of the best options.
This is a popular Internet-only bank. The overall package of this bank is very alluring and the money market rates are also competitive. If the account is linked to an Ally checking account, a number of benefits can be incurred. There is no minimum balance or monthly fee for this bank. The money market account can be accessed with an Ally ATM card. These kinds of accounts are a great way of providing oneself with overdraft protection and earn interest at the same time.
Sallie Mae also operates an Internet-only FDIC insured bank with some of the best interest rates in the United States. An interest rate of 1.30% is compounded on daily basis and paid monthly. Check writing capabilities are also available for those who have an account in this bank. Those who are looking for good money market rates and want a simple account with no fee and check access, Sallie Mae is a great option. The APY rates were previously 1.15% which has been increased to 1.30% making it one of the best banks in the country.
This is a credit union that anyone can join. The money market rates offered on investments from $500 to $500,000 are 1.27% and the investors can earn up to 1.37% on balances above $500,000.
However, the catch here is that the investor needs to deposit a minimum of $500 and the balance in the month cannot go below $500 else a monthly maintenance fee will be charged. Up to 6 free withdrawals or transfers from the account are allowed every month.
This bank recently acquired by TIAA Cref and is an online bank that is based in Florida. Recently, this bank has become very popular for the interest rates being offered and is known to be among the best when it comes to giving apt money market rates to the investors. This bank also appears on the best money market list.
However, the rates might go down after a year of opening the account here. A minimum amount of $5,000 is needed to open an account in this bank. An APY of 1.31% is earned only when the balance is up to $250,000 and there is no monthly account fee.
Capital One is popularly known to be one of the famous credit card issuers in the US. It, however, also operates a large online bank which is known to pay highly competitive rates. This bank in the year 2012 acquired ING Direct and renamed it as Capital One-360.
It has a money market account and gives great money market rates to the customers. It also offers good rates for balance below $10,000 and one of the best rates in the United States if the balance is above $10,000.
This is a small community bank based in Oklahoma. This bank also raises deposits nationally through the online medium. This bank is considered to be very attractive for people who have small amounts to invest and yet wish to earn handsome money market rates.
For a balance of $35,000, an APY of 1.50% can be earned here. A free debit card is also provided and no monthly maintenance fee is charged by the bank from its customers.
Choose from any of the above-listed options and get worthy money market rates for your investment.