Money Market Rates 101

Here at Money Market Rates 101, we like to occasionally do an overview of how rates are doing market-wide.  Today, we’re looking at February’s top performers.

Best money market rates are not offered by a single financial institution. One of the best money market rates is offered by the San Diego-based Bank of Internet USA. The bank is currently offering an APY of 1.50% for a basic investment of $100.

Columbus, Ohio-based Nationwide Bank also offers one of the best money market rates. It offers an APY of 1.45% for a minimum investment of $1,000. Capital One Direct Banking also offers an APY of 1.45% but its minimum deposit limit is relatively higher at $2,500.

Dollar Savings Direct offers an APY of 1.40% for a minimum deposit of $1,000. Ally Bank, famous for not asking for any minimum deposit, offers an APY of 1.39%. EverBank is currently offering an APY of 1.26% for a minimum deposit of $1,500. WTDirect also offers an APY of 1.26% but it asks for a minimum deposit of $10,000. FNBO Direct, on the other hand, does not have any minimum deposit requirement and offers the same APY. HSBC Advance offers an APY of 1.20% for a minimum deposit of $1.

The best rates 2010 are thus currently offered by the Bank of Internet USA with its 1.50% APY. None of the rates mentioned above are not accompanied by monthly fees or other charges. Banks does impose penalties on violation of the customer agreements but otherwise do not levy any extra charges. Almost all of the banks now offer money market accounts through their respective websites.