bank rates

Money Market Accounts: Avert Your Eyes

Man covering his face in exasperation with his left handWhile the stock market is soaring thanks to the Federal Reserve, money market account rates are sinking fast.

As of last week, five banks were paying at least 1.00% APY on MMAs.

Today, just one remains.

Three banks owned by an Oklahoma banking family just slashed their rates from 1.10% APY to 0.90% APY, while Chicago-based State Bank of India sliced its rate from 1.00% APY to 0.85% APY.

The sole bank paying above 1.00% APY is EverBank (www.everbank.com), based in Jacksonville, Fla., which pays a guaranteed 1.10% APY for the first six months after opening an account.

Last week, we wrote that a 1-year CD has become a better deal. Follow that advice.

EverBank’s Yield Pledge Money Market continues to pay its best rate on balances to $50,000. Higher balances earn 0.61% APY.

It takes a minimum deposit of $1,500 to open a Yield Pledge MMA, and once the bonus period ends, you’ll earn the standard MMA rate, which now is 0.61% APY.

You don’t have to keep a certain amount in the account to earn interest, and the account has no monthly fees.

After EverBank, the best you can earn nationally is 0.90% APY, which is being offered by five banks.

Evantage Bank (www.everantagebank.com), AmericaNet Bank and Redneck Bank (www.redneckbank.com) have all dropped rates from 1.10% APY to 0.90% APY.

The top rate is paid on balances up to $35,000. Higher amounts earn 0.50% APY. There are no minimum deposit requirements to open an account and no monthly 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 all balances. There is no minimum deposit requirement to open an account, and the account has no fees. The bank is headquartered in Salt Lake City and owned by the student loan company.

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

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.

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