bank rates

Top Money Market Rate Holds For 3 Months

TIAA Direct pays 1.25% APY.Since it debuted in February, the online bank TIAA Direct has offered the top nationally available money market account rate of 1.25% APY.

No other nationally available deal is close.

In fact, just two other banks offer MMA rates above 1% APY.

Along with offering the best rate, TIAA Direct also has the most favorable terms, paying 1.25% APY on all balances and only requiring a minimum deposit of $25 to open an account.

The online bank ( is a division of TIAA-CREF Trust Co., the large financial services provider.

But we’ve heard of some problems from readers who have tried to open an account.

Reader jojo wrote: “TIAA-CREF is not ready for prime-time. They may have the best MM rate currently available, but they also have the most unaccountable operations group in the business. Customer service is completely disconnected from the way transactions and all account activity actually happens.”

The next-best MMA rate is the 1.15% APY offered by My Banking Direct ( It’s a rate that’s remained unchanged since October.

To open an account with My Banking Direct, you’ll need to make a hefty $5,000 minimum deposit, and you’ll need to keep at least that much in your account to earn that rate. If your balance dips below that amount, you’ll earn just 0.25% APY.

My Banking Direct is a division of New York Community Bank, which has more than 200 branches in New York, New Jersey, Florida, Ohio and Arizona.

The only other bank paying at least 1.00% APY is Incrediblebank (, which pays 1.00% APY on balances between $2,500 and $249,999. Any portion of your balance above $250,000 earns 0.50% APY.

It takes a $2,500 minimum deposit to open an account with Incrediblebank and to earn interest. The bank is the online division of River Valley Bank of Rothschild, Wis. It has 16 locations in Wisconsin and Michigan.

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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Comments (3)
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3 Existing Comments
  1. Geoff said:
    on May 7th at 09:05 am

    Why don’t you mention Barclays at 1%? They show as top on your list, which begs the question why TIAA Direct does not appear.

  2. Mike Cetera said:
    on May 7th at 09:14 am

    Geoff: Barclays is on our post about top savings account rates:

  3. Kathy at Bankaholic said:
    on June 27th at 07:49 am

    Incrediblebank’s rates have dropped to 0.95%/0.45%. But the good news is that since this post, two other banks are paying 1.25% on money market accounts: UFB Direct and EverBank. Read about it here: