bank rates

Less Competition For MMAs Than Savings

Hand putting cash into a jar filled with moneyWe’re starting to see a role reversal between savings and money market accounts.

For much of 2013, MMAs offered higher rates and gave you a broader array of options for accounts paying at least 1.00% APY.

While you can still land a slightly better rate with an MMA, you have more choices among savings accounts paying 1.00% or higher.

A year ago, there were nine nationally available offers of at least 1.00% APY for MMAs. Today your only choice is EverBank (www.everbank.com), which pays 1.10% APY on balances to $50,000. That rate is guaranteed for six months.

Beyond that, you’ve got six banks paying about 0.90% APY on their MMAs.

In comparison, Salem Five Direct (www.salemfivedirect.com) just boosted its savings rate to 1.00% APY. That gives us four banks paying at least 1.00% on nationally available savings accounts.

At EverBank, after the six-month bonus period is up, you’ll earn the standard rate on the Yield Pledge MMA, which currently is 0.61% APY. Balance portions greater than $50,000 also earn 0.61% APY.

You need to make a $1,500 minimum deposit to open an account with the Jacksonville, Fla., based bank. However, you don’t need to keep a certain amount in your account to earn interest. The MMA has no monthly service fees.

The next-best offerings are:

IncredibleBank (www.incrediblebank.com), which pays 0.95% on balances to $249,999. You need a minimum deposit of $2,500 to open an account. You’ll even earn interest if your balance falls below that amount, but you will have to pay a $10 service fee. The bank is the online division of River Valley Bank, located in Wisconsin.

Five banks pay 0.90% APY.

Evantage Bank (www.evantagebank.com), AmericaNet Bank (www.americanetbank.com) and Redneck Bank (www.redneckbank.com) pay that rate on balances to $35,000. Balance portions above that earn 0.50% APY. The three banks are owned by an Oklahoma banking family. You don’t need to deposit a minimum amount to open an account, and the account has no fees.

Evantage Bank is the online division of Southwest State Bank in Sentinel, Okla.; Redneck Bank is the online division of Bank of the Wichitas in Snyder, Okla.; and AmericaNet Bank is the online division of All America Bank in Mustang, Okla.

Sallie Mae Bank (www.salliemae.com) pays 0.90% APY on your entire account balance. There’s no minimum amount required to open an account, and there are no monthly fees. The bank, based in Salt Lake City, is owned by the student loan company.

Union Federal Savings Bank (www.unionfsb.com) also pays 0.90% APY with a $2,500 minimum initial deposit. You don’t need to keep that much in your account to earn interest, and the MMA has no fees. The bank began as a community bank in North Providence, R.I., but now is an online bank.

You can compare these rates to the best money market and savings account rates offered by scores of banks in our database.

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