bank rates

The Final Four: Few MMA Rates Top 1%

TIAA Direct pays 1.25% on its money market account.There’s more to like about the best nationally available money market deal from TIAA Direct than just the interest rate.

Although, with the state of things for savers, 1.25% APY is nice in and of itself.

But here’s what else is good about this account:

  • TIAA Direct ( requires a far smaller minimum deposit than other banks we’re tracking. It requires just $25 to open an account.
  • There’s no balance cap, meaning you’ll earn 1.25% APY whether you have $1,000 or $100,000 on deposit.

In comparison, AmTrust Direct ( and My Banking Direct (, which have the next-best deals, both pay 1.15% APY. They also both require a $5,000 minimum deposit to open an account.

If your MMA balance dips below $5,000, you’ll earn 0.25% APY on your account. The two banks are divisions of New York Community Bank, which has more than 200 branches in New York, New Jersey, Florida, Ohio and Arizona.

TIAA Direct is a division of TIAA-CREF Trust Co., the large retirement services provider. TIAA-CREF’s core focus has been providing financial services and planning for those in the academic, medical, cultural, government and research fields.

Sad to say, but only one other bank pays at least 1.00% APY on MMAs these days.

That remaining holdout is Incrediblebank (, which pays an even 1.00% APY on balances between $2,500 and $249,999. Balances above that amount earn 0.50% APY. It takes a $2,500 minimum deposit to open an account.

Incrediblebank is the online division of River Valley Bank of Rothschild, Wis. It has 16 locations in Wisconsin and Michigan.

Of course, there’s also the 6-month MMA rate guarantee from EverBank. We aren’t including that deal in our list because the bank’s standard yield is much lower.

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

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Comments (2)
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2 Existing Comments
  1. Romesh Chander said:
    on March 12th at 11:53 am

    AmTrust Direct / Mybanking Direct may offer an attractive rate (1.15%) for their e-money market account, but their high fees cancel out all advantages. For electronic transfers from/to external banks requires the use of their MoneyHQ which costs $4.95 per month for transfers per month and $1.50 per additional transfer. Other banks have ACH transfers which are always free; this bank has no such mechanism for interbank transfers (both deposits and withdrawals).

    I just opened the account and found out all these problems; they never touched on these subjects in their consumer agreement. To avoid early closing penalty, I will be closing my account in 6 months; I hope they don’t charge me fees for closing the account and sending / mailing me a cheque (I don’t live in their territory).

    I have lot of experience with many banks, so I know what I am talking about. Other banks don’t charge for deposit / withdrawal services electronically. I have account with Capital One/ American Express / Ally; and none of them have any such charges.

  2. Kathy at Bankaholic said:
    on April 2nd at 08:01 am

    These rates are all still available.