bank rates

Top MMA Pays A Third Less Than Last Year

You'll earn 1.15% APY on the top nationally available money market account.The best CD rates fell by about 20% in 2011. Amazingly, the top nationally available money market account fared even worse.

Last winter, the top MMA paid 1.75% APY. Today, you’ll earn 1.15% APY, a decline of more than a third. (The average MMA rate fell from 0.27% APY to 0.21% APY.)

That may not shock many savers who saw rates slip throughout the year. But there was one added wrinkle that helped to knock down some of the best nationally available accounts.

Some banks simply stopped taking money altogether.

For example, Evantage Bank, which led our rankings last winter, cut off new applications in February — and then it began cutting interest rates on existing customers. Today, it pays 1.10% APY and still won’t take on new accounts.

In comparison, current co-leader AmTrust Direct (www.amtrustdirect) has held up quite well, paying 1.15% APY. That’s down just 0.10% APY from last year, while many of the other 2011 leaders have fallen off the charts completely.

These days, AmTrust Direct and My Banking Direct (, both divisions of New York Community Bank, lead our rankings.

AmTrust Direct and My Banking Direct both require a $5,000 minimum deposit to open account, and balances of $5,000 and above earn 1.15% APY. Balances below that earn 0.25% APY.

Their parent, New York Community Bank, has more than 200 branches in New York, New Jersey, Florida, Ohio and Arizona.

In comparison, savings leader UFB Direct’s ( Airline Rewards Savings Account is paying 1.30% APY and offers free airline miles. You only need a $100 deposit to open an account. UFB Direct is a division of BofI Federal Bank, which is based in San Diego.

Only one other bank is currently paying at least 1.10% APY on MMAs, compared to nine that were paying that rate a year ago.

Incrediblebank pays its top rate on balances between $2,500 and $249,999. Balances above that amount earn 0.60% APY. A $2,500 minimum deposit is required to open an account.

The bank is the online division of River Valley Bank of Rothschild, Wis., which has 16 branches in Wisconsin and Michigan.

You can see how these money market leaders compare to the best money market and savings account rates from scores of banks in our database.

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Comments (4)
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4 Existing Comments
  1. Kathy at Bankaholic said:
    on January 22nd at 09:11 am

    These rates are still available except for now former leader UFB Direct’s. It has dropped its savings rate to 1.10% APY.

  2. Kathy at Bankaholic said:
    on February 5th at 01:01 pm

    UFB Direct’s savings rate has fallen again, to 1.05% APY.

  3. Kathy at Bankaholic said:
    on February 23rd at 10:42 am

    UFB Direct’s savings rate has fallen a couple of times — now at 0.85% APY.

  4. Kathy at Bankaholic said:
    on March 8th at 10:19 am

    You can still get AmTrust Direct’s and My Banking Direct’s 1.15% APY rates. UFB Direct’s rate is down to 0.80% APY now. And Incrediblebank is paying 1.05%.