bank rates

Best MMAs Still Much Better Than Average

The average money market account rates offered by large banks and thrifts is an astoundingly bad 0.18% APY.

Hudson City Savings Bank offers the top nationally available deal at 1.25%So while the top nationally available rates have tumbled over the past month, the best deals are still nearly seven times better than average.

Our new MMA leaders, Hudson City Savings Bank and AmTrust Direct, share the top spot with a rate of 1.25% APY.

After several top banks stopped taking new MMA customers last month, the best rates fell by a half a percentage point and are now lower than the top 12-month CD rates. The top MMA rates are also lower than the best nationally available savings rate of 1.31% APY from SFGI Direct.

The Hudson City rate of 1.25% APY is good on balances of at least $2,500. Below that, you earn 1% APY. Hudson City, based in Paramus, N.J., has more than 100 branches in New York, New Jersey and Connecticut.

You can also earn 1.25% APY from AmTrust Direct, the online division of AmTrust Bank of Cleveland. The rate applies to balances of $10,000 to $149,999. A balance above or below those amounts earns 0.50% APY. A minimum $500 deposit is required to open the account.

The next best available rates are:

1.11% APY from Flagstar Bank of Troy, Mich. It requires no minimum balance to open the account or earn that rate, and there are no fees.

1.10% APY from Discover Bank, of Greenwood, Del., an online bank owned by the credit card company. You’ll earn 1.10% APY for balances between $10,000 and $99,999. Balances above that amount earn 1.15% APY, while balances from the minimum deposit of $2,500 to $9,999 earn 1% APY.

1.10% APY from First Internet Bank of Indiana, an online bank based in Indianapolis. You can open the account for $100 and fees are $5 a month unless you maintain a $4,000 minimum balance.

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Comments (1)
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One Existing Comment
  1. Kathy at Bankaholic said:
    on March 27th at 08:30 am

    All of these rates except First Internet Bank of Indiana’s are still available as of March 27, 2011.