Money Market Rates 101

Here at Money Market Rates 101, we look at money market savings offers from all over the country.  Today, we’re looking at savings at SunTrust.

SunTrust Bank offers a number of investment options in both certificates of deposit and general saving accounts. SunTrust money market account can be opened online as the company website offers a simple procedure. They have created a new portal on their website where customers can find information on money market at SunTrust and other investment features.

There are a number of savings at SunTrust options but all shares some common features; rules and regulations are almost exactly the same. The minimum deposit balance for opening a money market account is $1,001. Minimum collected daily balance should be at least $2,500. No maintenance fee is charged if the balance requirement is met, otherwise; $15 per month are charged as a monthly fee if balance requirement is not met.

Excessive withdrawal fee of $15 is also levied on these accounts. This fee is accrued in case of more than six pre-authorized, telephone funds transfers or third party transactions during the statement period. The fee is charged at the time of withdrawal.

A checking account with the company is required for investments in money markets. The bank offers an online facilitation service where potential customers can interact with the company representatives over an internet chat system. They will also be able to open accounts through the company website; there is simply no need for any old style document based system. The bank also offers CD investments and IRA investments under its money markets program.

There are 9 Vanguard Money Market funds for investors to place their money in with minimal risk. 6 of these funds are tax exempt and 3 are taxable.

There is the Admiral Treasury Money Market fund that has all of its $22.2 billion in assets in US Treasury Bills. Since its inception, this fund has had a return of 3.62%, but at the present time is closed to investors. This is one of the taxable funds.

The Vanguard California Tax-Exempt Money Market Fund has $5.3 billion in assets that is 100% invested in 314 tax exempt securities. The average maturity date of these securities is 38 days which makes this fund highly liquid.

The Vanguard Federal Money Market Fund is another taxable fund that is also closed to investors. There is $7.7 billion in assets that are divided up with 71% in US governmental obligations and 29% in US Treasury Bills.

The Vanguard New Jersey Tax Exempt Money Market Fund has $2.51 billion in assets that are invested in 159 tax exempt securities.

The Vanguard New York Tax Exempt Money Market Fund has $3.8 billion in assets that are invested in 254 tax exempt securities.

The Vanguard Ohio Tax Exempt Money Market Fund has $924.5 million in assets that are invested in 130 tax exempt securities.

The Vanguard Pennsylvania Tax Exempt Money Market Fund has $3.3 billion in assets that are invested in 197 tax exempt securities.

The Prime Money Market is taxable and more diverse than the other MM funds. There is $111.9 billion in assets with 2% in bankers acceptances, 51.3% in CDs, 18.2% in commercial paper, 0.1% in repurchase agreements, 9.0% in US governmental obligations, and 19.3% in US Treasury Bills.

The Tax Exempt Money Market Fund has all of the $20.1 billion in assets in 1,224 tax exempt securities.

These Vanguard funds are extremely low risk and safe investments. Each has a minimum of $3,000 for investors to get shares but they will purchase 3000 shares since all of them have a share price of $1.00. Because of the low risk, the Vanguard Money Market funds are also having very low returns. All of which are less than 5% over 10 years.

For decades, US Money Market Funds were marketed and sold as the ultimate safe investment. And for some time, they were. Only twice in 40 years did the value of a money market fund decline below the amount invested in it. Fund managers used to be very careful and conservative which debts they buy. Only the most secure debt was invested in, much of it issued by the federal government. Yields, though, were low. But the money itself was safe because the underlying debts were going to be paid back.

In recent years, some money market managers began to invest in riskier debt to pursue higher returns. When the credit markets deteriorated, a lot of this riskier debt was suddenly not necessarily going to be paid back, putting money market funds at risk. People began to worry that the good ol’ secure money market funds were in trouble and began to panic. To quell this problem, investment firms and the government moved to assure the safety of these investments. Investor losses did not take place and the panic subsided.

Presently, since they are investments in assets, the safety of money market funds depends on the quality of the assets. There are some corporations with debt that is not credit-worthy but there are also many corporations with credit-worthy liabilities. Today, the historically conservative attitude of money market managers has returned and money market funds are going back to their roots as boring but safe investments offering relatively low rates of return but almost no risk of loss. Investors who are concerned about the security of their money market funds need to understand this equation. If you see that one money market fund is paying 5%, while all the other ones are paying 4%, you can assume that the fundamental assets of the former involves more risk than that of the latter.

Money Market accounts, by contrast, are basically savings accounts which are FDIC-insured up to $250,000. They are just simply deposited and gain interest. They were not affected with the problems in the credit market.

As for US Money Market Funds, the apprehension of major losses turned out to be just uncertainties.

People are interested in high yield savings account. We here at Money Market Rates 101 know that people want the best yield possible.  They want the highest Annual Percentage Yields on their accounts as this ensures greater profits and better financial performance. Banks generally do not offer high yield savings on every type of savings account. Some of the highest yields are as follows.

Capital One Direct Banking is offering high yield savings account with an APY of 1.55% with the minimum opening balance of $2,500. American Express Bank FSB offers an APY of 1.50% although it does not have any requirements for minimum balance.

APY of bank account rates is calculated at 1.49% at Ally Bank. This financial institution does not have any minimum balance requirement under most of its investment options. WTDirect is currently offering an APY of 1.41% if the saving account has a minimum balance of $10,000. ING Direct does not have any minimum balance requirement and offers an APY of 1.25%.

It is possible to receive over 3% in bank account in the Certificates of Deposit investments, especially in the high yield option. A 5-year investment generally yields more than 3% APY and some companies offer as high as 3.50% APY. A 4-year investment also sometimes yields an APY of 3% under special cases although most companies offer a maxium of 2.75% under this investment. A 7-year investment in CD and a 10-year investment in CD also yields higher APYs. They can be as high as 3.75% but mostly remain under 3.50% and some are even lower than 3%. It all depends on the economic indicators and the company that is offering these rates.

The current Wells Fargo Money Market rates come from a bank with over 150 years in the business. The image of the six-horse gold-laden stagecoach thundering across the American West will forever be linked with this institution.

Opening a Wells Fargo Money Market Savings online is quick and easy if you want competitive rates and easy access to your money with the option to write checks. Of course, this is limited to six transfers per statement period with a maximum of three withdrawals by check, draft, POS, or similar order. Fees will apply if you go over these limits. The minimum opening deposit is $100. To fund your account online, you can transfer the fund from an existing Wells Fargo account, by credit card, or by check or money order by mail or in person. You can also transfer from a non-Wells Fargo account by providing your account number and the nine-digit routing number found on your checking or deposit slip. There are no monthly fees to pay if you maintain a $3,500 minimum balance or if you set up a $75 automatic monthly transfer from another Wells Fargo account. Otherwise, the monthly fee will be $10. You can also enjoy additional benefits which include online banking, mobile banking, and account alerts among other things.

For balances of $0 or more, the APY is 0.05%. However, Wells Fargo is offering a bonus APY of 0.15% on its Money Market Savings account if you maintain a linked PMA Prime Checking account, Wells Fargo Complete Advantage Checking account, Wells Fargo Premium Membership Checking account, or Wells Fargo Custom Management Checking account.

 Visit the Wells Fargo website for more details on their Money market accounts.

The Wells Fargo Money Market rates are valid from 1/09/2010 to 1/15/2010 and are subject to change without prior notice.

Take a look at Georgia Primary Bank Money Market Rates when thinking of planning ahead and saving up for your children’s education. Georgia Primary Bank was formed by a diverse group of business and civic leaders in the Atlanta market to serve the financial needs of businesses and individuals in this area. Enjoy check writing ability while earning a competitive money market rate.

The personal money market rates of Georgia Primary Bank are as follows. For a minimum balance of $0 to $9,999.99, the interest rate is 1.637% with an APY of 1.650%. For a minimum balance of $10,000 to $24,999.99, the interest rate is also 1.637% with an APY of 1.650%. For a minimum balance of $25,000 to $49,999.99, the interest rate is 1.833% with an APY of 1.850%. For a minimum balance of $50,000 to $99,999.99, the interest rate is 2.127% with an APY of 2.150%. For a minimum balance of $100,000.00 and up, the interest rate is 2.469% with an APY of 2.500%.

The commercial money market rates are as follows. For a minimum balance of $0 to $9,999.99, the interest rate is 1.242% with an APY of 1.250%. For a minimum balance of $10,000 to $$24,999.99, the interest rate is 1.242% with an APY of 1.250%. For a minimum balance of $25,000 to $49,999.99, the interest rate is 1.489% with an APY of 1.500%. For a minimum balance of $50,000 to $99,999.99, the interest rate is 1.735% with an APY of 1.750%. For a minimum balance of $100,000.00 and up, the interest rate is 1.980% with an APY of 2.00%.

Fees may reduce earning on these money market accounts and rates may change after the account is opened.

These Georgia Primary Bank Money Market rates are accurate as of 01/04/2010.

Financial market did not see a rebound in 2009 and investors are pinning their hopes on 2010. Wall Street was able to avoid a major disaster at the start of the year but banks were unable to show solid earnings. Money market rates depend on the global economic situation and performance of banks. Donald Jay Korn writes in his review that American financial industry will continue depending on good news from the Wall Street.

Money Market 2010 Outlook is generally positive. Housing market has shown improvements in 2009 and investors will closely watch the trends in 2010. Investors saw a growing interest in the technology sector and equities related to Information Technology business saw major profits. Trends will remain the same in 2010 as investors have eyed the technology business as the major revenue of profits. Innovation and up gradation of current technologies and new engineering solutions will upend this investment.

Another avenue of American economy that holds promise is the retail sector. Increased consumer spending is expected in 2010 especially in gadgets and other technology items. Health sector is showing significant growth and investors have started taking this sector seriously. Donald Jay Korn estimates that healthcare legislation had a strong impact on the health sector stocks and there will be more investments in 2010.

High yield market is appealing according to Donald’s review. He thinks that investors are ready to take this risk. Tax-exempt bonds are another promising avenue of investment. Donald opines that a diversification of economy and solid global performance of commodities can turn things around.

This Bank of America 1.50% Money Market rates are no longer advertised as available in the Pennsylvania and Delaware areas on the home site of Bank of America. The reason may be because the Bank of America is a nationwide financial institution and has different rates in different parts of the country for some of their accounts. The 1.50% on Money Market Accounts was a promotional offer that is about to expire. For those investors that took advantage of this promotional rate, it is still valid but will expire on January 4, 2010. The highest current advertised rate is the bonus APY of 0.95% for accounts over $250,000. For accounts under $10,000 the bonus APY is 0.40%.

There are other financial institutions that are offering money market accounts at 1.50% APY or above. EverBank has a rate of 1.51% APY with a minimum deposit of $1,500. This rate was posted on December 24, 2009. Geddes Federal Savings and Loan Association has an APY of 2.01% and an interest rate of 1.99% with a deposit of $50,000. AmericaNet Bank is the best offer for those with limited funds. They have an APY of 2.00% with a minimum deposit of $1.00. This is their Mega Money Market Checking account and is valid for balances under $35,000. This rate was posted on December 29, 2009.

For those with the Bank of America 1.50% Money Market rates, the account will be changed to a Growth Money Market Account and your rate will be lowered on January 4, 2010 to 0.35% for balances between $10,000 and $24,999.99.

The money market rates 2010 outlook should be more of the same as 2009 was. With a weak economy, the Federal Reserve will be keeping the interest rates low to inspire growth through financial loans. This will require the financial sector to start issuing more loans which they have been reluctant to do.

The global outlook has some economist predicting a 4% growth in domestic GMP while developing economies could reach up to 6.5%. This type of growth will need the manufacturing sectors to expand. This will require loans. The faster the banking system loosens up their restrictions on loans, the faster the economy will move. This will bring inflation and higher interest rates from the Fed to keep it in control.

This is when investors and people trying to save for the future will see an increase in their money market rates. It will all start with the banks making loans.  Some economists are only predicting a 2% GMP rise in the G10 countries. This will slow any type of recovery and help keep inflation and interest rates low.

Unfortunately, the rates of return on savings account are at the mercy of the economy and the financial sector. The Federal Reserve has done its part by lowering the interest rate to 0 and 0.25%. There is nothing else they can do to stimulate the economy. What is holding it back at present is the banking institution not making loans for expansion in the manufacturing sector.

Most believe this will change mid 2010 and the economy will start to grow more rapidly. It will be a long bumpy and boring road to recovery, but it will occur. This is when the money market rates 2010 outlook will begin to improve with higher rates.

With the AmericaNet Bank Money Market Rates above the national norm, I felt compelled to write about them. AmericaNet Bank is a branch of the All America Bank out of Oklahoma. This financial institution has been operating since 1969 and is FDIC insured.

The Mega Money market account is essentially a free checking account with limitations. There is no minimum balance, but any balance that is maintained receives 2.00% APY.  The monthly statements are issued electronically to be environmentally conscious.

This account offers a free AmericaNet Bank Visa checkcard. There is no monthly maintenance or service fee. Access to online banking and all of its features are free of charge. All customer service features are free of charge and there is no minimum balance needed to keep the account open.

The 2.00% APY is calculated on a daily basis on the current balance that is under $35,000. Amounts over $35,000 earn an APY of 1.00%. Under federal regulations of a money market account only 6 withdraws a month are permitted to be free.  Any withdraws over this limit are charged $5 per transaction.

To open a Money Market Accounts all one has to do is apply online. There is nothing that has to be mailed in or faxed.

Why this is advertised as a checking account is beyond me. The 2.00% APY is attractive and a good deal but I have more than 6 bills a month that have to be paid. This is essentially a very good savings account. The limited withdraws will help the account holder save their money.

The AmericaNet Bank Money Market Rates are amongst the best in the nation at the moment.