Two of the best money market rates recently turned out to be flashes in the pan, as both Sallie Mae and BBVA Compass offered good paying, nationally available MMAs for just a few weeks, then trimmed their rates.
Sallie Mae cut its rate from 1.19% APY to 0.90% APY and eliminated its six-month rate guarantee, while BBVA Compass cut the rate on its BBVA Compass ClearChoice Money Market from 1.10% APY to 0.85% APY.
The best MMA rates continue to come from a pair of affiliated banks from Oklahoma, All America Bank and Redneck Bank, which are paying 1.25% APY. But the top rate is only paid on balances to $35,000. Higher balances earn 0.50% APY.
Both banks require a minimum deposit of $50 to open a Mega Money Market account. You don’t need to keep a certain amount in your account to earn interest, and there are no monthly service fees.
The family that owned a trio of Oklahoma banks rolled them together last year under the name All America Bank. It’s now based in Mustang, with seven branches and Redneck Bank as an online division.
The next best rate comes from EverBank, which is paying 1.11% APY with the rate guaranteed for a year on its Yield Pledge MMA.
You’ll need to deposit at least $1,500 to open a Yield Pledge MMA, but you don’t need to keep that much in your account to earn interest. There are no monthly service fees. You’ll earn the top rate on balances to $150,000. Higher balances earn 0.61% APY.
EverBank has been offering a top-paying MMA for years. It’s not clear how that may change, as the bank recently announced it had entered into an agreement to be acquired by TIAA in mid-2017. The deal still must be approved by regulators.
TIAA is a financial services provider based in New York and operates TIAA Direct, an online bank. EverBank is based in Jacksonville, Florida, and has about a dozen branches around the state.
Two banks are paying 1.10% APY, but neither guarantees its rate.
The Dime Savings Bank of Williamsburgh is paying 1.10% APY, and you need to deposit at least a $1,000 to open a Dime Direct MMA, but you don’t need to keep a certain amount in your account to earn interest. There are no monthly service fees. Dime Savings Bank has 25 locations in and around New York City.
iGobanking also is paying 1.10% APY, but you need to deposit a steep $25,000 to open an account and earn interest. If your balance falls below that amount you’ll be charged a $15 monthly service fee.
iGObanking is the online division of Flushing Bank in Lake Success, New York, which has 18 locations in the New York City area.
Just behind them is EBSBdirect, with a money market account paying 1.08% APY. It takes a minimum deposit of $2,500 to open an account, but you need to have at least $10,000 in your account to earn the best rate. Balances of $10 to $9,999 earn just 0.25% APY, and you’ll pay an $8 monthly service fee if your balance is below $2,500. EBSBdirect is the online division of East Boston Savings Bank, which has 30 locations in the Boston area.
You need to keep in mind that banks can change money market rates whenever they like, and that includes lowering the payout, unless your return has been explicitly guaranteed for a certain period of time.
You can see how these rates stack up to the best money market and savings account rates offered by scores of banks in our database.
Money Market Leaders for August 27, 2016
|Bank||APY||Min Deposit||Min Balance|
|All America Bank||1.25%**||None||None|
|Dime Savings Bank||1.10%||None||$2,500|
** All America and Redneck banks limit the top rate of 1.25% APY to the first $35,000. Balances greater than that earn 0.50% APY.
***Sallie Mae guarantees the introductory rate of 1.19% for six months. After that the return falls to the regular money market account rate of 0.90% for a combined annual APY of 1.05%.