Best Money Market Rates

For those in need of a stable source of recurring interest, there’s nowhere better to look than a bank’s money market account. Built to make the most of public and private securities offerings, accounts of this type draw on multiple sources to ensure a high rate of return for clients. They’re a leading staple of retail banking, and one of the most important investment forms out there for stable income.

However, many of those that invest in money market accounts fail to do so with the right amount of research under their belts. As with many things in the banking and financial services industry, what is immediately available may not be the best long-term option for you or your savings. Taking time to survey different money market rates isn’t stupid; it’s a very sensible thing to do before you invest.

The reason for this is that the best money market rates aren’t immediately apparent, at least not by simply looking at what most major banks are offering. Many money market accounts are made too hard to open due to high deposit requirements and incredibly strict withdrawal and financial change limits. While maximizing interest, this can significantly lower the versatility of any one account.

We’ve looked at several money market accounts offered by leading banks, and come away with a variety of interesting facts and figures on how they operate. From consumer value to a look at the type of accounts that will make you long-term money, this brief guide summarizes many of the top points to look for before investing in a money market account. Interested? Then be sure to read on.

Before you invest in any money market account, it’s important to consider your own financial situation. Many banks like to market using the best possible rates of return for their accounts, ignoring the fact that the vast majority of depositors are unable to achieve those rates. If you’re looking at the posted rates alone, you may be missing the bigger picture about your account.

Consider, for example, that APY earnings are only a realistic option for those with a relatively large initial balance, such as $15,000 or greater. Many would-be investors are drawn to market accounts, largely because of the APY offerings. When they realize that there’s a fairly stiff minimum for these earnings to even apply to an account, it can push them towards other less lucrative bank accounts.

It’s worth noting, however, that many banks have no minimum deposit for APY earnings. Before you invest in any account based on the initial rate, however, check if this is the case. A lot of bank accounts are advertised based on one rate or another to make them seem more appealing, while the actual rate offered by the account can change dramatically with the additional or loss of APY.

As for standard interest rates, this is relatively more simple to calculate. The industry standard at this time appears to be between 1.2% annually and 2%, with most banks falling into the median. Some focus on initial interest on the account, while others prioritize APY. When calculating your total interest rates on the account, it’s essential that you consider both before picking an account.

Leading the money market account rates are Palladian Private Bank, with a 1.49% rate on APY of just over 1.5%. Other high performers include Washington Savings Bank, which offers a similar 1.5 percent rate of interest. APY figures of approximately 1.2 percent are common throughout most of the top performing banks, although figures can vary based on your deposit – check with your bank.

Discover Bank offers an interest rate of approximately 1.3 percent, with APY of 1.2 percent on the total deposited amount. These figures are relatively common with other major banks too – CNB is close to the same, as is Sallie Mae. The vast majority of money market rates are tied to investment size, not just the bank chosen. As usual, it’s best to shop around and leverage your deposit’s size.

It’s important to consider more than just the initial rate and APY, however. Features such as the ability to make reasonably frequent withdrawals can change an average money market account, making it a great deal. It’s worth looking at the fees attached to a money market account too – a great deal of ‘lucrative’ accounts are tied down with stiff fees for making even small adjustments.

It’s also essential that you consider banks that are covered by FDIC (Federal Deposit Insurance Corporation) insurance. This ensures that regardless of the financial status of your bank, all the money that you’ve deposited up to $250,000 is kept safe and secure. This is especially important given the somewhat difficult economic conditions that many banks are currently operating under.

Comparing money market rates can seem like a difficult process – one that’s made even worse by the myriad complications and figures. However, with the right strategy, it can pay off with major earnings for yourself and your investments. Keep calm, and trust the information that’s available. With a good money market account on your side, keeping your interest high is a simple process.

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