bank rates

Money Market Accounts Today Vs. 2012

finger touching calculator keysMoney market account rates haven’t changed much in the last two months, so we thought we’d take a closer look at performance over time.

Specifically, how do today’s MMA rates compare with what you could have earned this time in 2012?

First, let’s note that five banks currently pay more than 1.00% APY on money market accounts, and four of those are paying 1.10% APY.

A year ago, the best nationally available MMA paid 1.30% APY. The bank offering that rate — UFBDirect — no longer offers a competitive deal. It pays just 0.20% APY.

In fact, just three of 10 accounts from the beginning of August 2012 remain on our list of top offers. And none of those accounts pays any better today than it did last year.

The chart below shows the rate trajectory from those three banks, Incredible Bank, Sallie Mae Bank and Union Federal Savings.

Chart showing how top money market accounts have fared year over year

The takeaway here is that you should probably look at how banks perform over a long period before you open an MMA account. Simply picking the highest rate might not be the best answer because that rate might not last long.

That being said, where can you find the best rates today?

EverBank (www.everbank.com) pays 1.10% APY for 6 months on its Yield Pledge MMA. The rate is good for balances up to $50,000.

After the six months is up, you’ll be paid the bank’s standard rate for MMAs, which currently is 0.61% APY.

Balances above $50,000 earn 0.61% APY. (EverBank offered a similar deal last year at this time, but if you kept that account open, your rate would no longer be competitive today.)

It takes a minimum deposit of $1,500 to open an account, but there is no minimum balance required to earn interest. An MMA from EverBank, based in Jacksonville, Fla., carries no monthly fees.

Your other options paying 1.10% APY are Evantage Bank (www.evantagebank.com), AmericaNet Bank (www.americanetbank.com) and Redneck Bank (www.redneckbank.com). All are owned by an Oklahoma banking family. The rate has remained unchanged throughout 2013.

Their highest rate applies to balances to $35,000. For higher balances, you’ll receive 0.50% APY. The accounts have no minimum balance requirements and 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.

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