Money Market Rates 101

Money markets cannot be considered as equivalent of certificates of deposits and other savings accounts. They offer higher yields but there are enough fluctuations in the market that can nip the profits of an investor. They are changed on an almost daily basis but monthly averages are taken out to give an accurate figure.

The best money market rates in US, as of May 2010, are as follows. Sallie Mae is offering the highest APY at 1.40% and there is no minimum deposit requirement.

The second best money market rates 2010 with the highest APY are offered by Discover Bank and Capital One Direct Banking; they are currently offering an APY of 1.35% and ask for a minimum deposit of $500 and $2,500, respectively.

American Express Bank FSB offers an APY of 1.30% and does not have any minimum deposit requirement. Dollar Savings Direct and newdominionDIRECT.com are also offering 1.30% APY but ask for an opening balance of $1,000 and $3,000, respectively.

Ally Bank’s best MMA rates hover around 1.29% APY with no requirement of minimum balance. EverBank offers an APY of 1.26% for a minimum opening balance of $1,500. Sallie Mae is also offering the same APY and has no requirement for minimum opening balance. FNBO Direct is offering an APY of 1.25% for a minimum opening balance of $1 and iGOBanking.com offers an APY of 1.20% for no minimum opening balance requirement. Other banks are offering rates lower than 1.20% threshold.

Here at Money Market Rates 101, we know that you are always on the lookout for the best rates and offers from area and regional banks.  Today, we’re looking at First Florida CU to show you what they offer.

First Florida Credit Union offers a diverse range of financial products in its home state. The company has seen expansion and rising profits as more people have become aware of its existence and are investing money in the company. First Florida Credit Union money market accounts remain popular with investors as they have relatively higher yields and provide greater security of investment.

First Florida money market rates as of April 2010 are as follows. Security Plus More account of the credit union is currently offering an APY of 1.00% for a minimum deposit of $2,500. High Yield Money Market Account of the company is offering an APY of 1.25% with the minimum deposit requirement is ten times greater than the basic account at $25, 000.

First Florida Credit Union rates for its Platinum Money Market Account are currently estimated to yield 1.50% with a minimum investment of $50,000. The basic interest bearing checking account at the bank currently yields an APY of 0.50% and this rate is also valid for the savings account.

All rates are subject to change depending on the financial position of the company and national economic conditions. Regulatory procedures and rules and regulations may also alter the interest rates and APY of these accounts. The bank reserves the right to impose penalty in case of any violation of the user agreement or early withdrawal of money. Further details are available on the company website and customers can also make calls to the official contact center.

We here at Money Market Rates 101 know that money markets do not offer the same high yield rates as one can find in certificates of deposits or other savings accounts. Yields are higher but there are rapid fluctuations that can change the fortunes of an investor. A regular update is necessary for investors to abreast themselves with the latest financial indicators.

The best money market rates in US, as of April 2010, are as follows. Bank of Internet USA is offering the highest APY at 1.40% and there is a minimum deposit requirement of $100 for this account.

US best money market rates with the second highest APY are offered by Discover Bank and Colorado Federal Savings Bank; they are currently offering an APY of 1.35% and ask for a minimum deposit of $500 and $2,500, respectively.

American Express Bank ESB offers an APY of 1.30% and does not have any minimum deposit requirement. Dollar Savings Direct and newdominionDIRECT.com are also offering 1.30% APY but ask for an opening balance of $1,000 and $3,000, respectively.

Ally Bank money market rates hover around 1.29% APY with no requirement of minimum balance. EverBank offers an APY of 1.26% for a minimum opening balance of $1,500. Sallie Mae is also offering the same APY and has no requirement for minimum opening balance. Capital One Direct Banking is offering an APY of 1.25% for a minimum opening balance of $2,500 and AIG Bank offers an APY of 1.20% for minimum opening balance of $10,000.

Everbank has emerged as a major financial institution in the United States. It has yet to achieve the financial stability as enjoyed by the major financial institutions of the US but the bank is surely on its steady path to success. It has started offering many new accounts with lucrative offers to lure more customers. Everbank money market account has become the talk of the financial town in recent months. The company is offering a standard annual high yield rate of 1.51%. The account is called Yield Pledge Money Market account and claims to offer one of the highest rates in the financial market.

Everbank money market promises its account holders that their accounts will be kept in the top five percent of the competitive accounts in the Leading Index of national banks and thrifts. It also offers a starting rate of 2.25% as a three month bonus rate but the year long rate remains 1.51%.

The rates for money markets at Everbank are calculated after taking into account the national economic atmosphere and financial conditions. These rates are subject to change and the bank cannot promise the highest rates during extended periods of time. Latest information about rates is available on the company website to help visitors with deciding about their investment strategies. General rules and regulations apply on the high yield account and the bank might deduct some money in case of violations of user agreement or early withdrawals.

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.

The best money market rates are not constant and they are not offered by any single bank or financial institution. Money market rates are expected to change and the following estimates are accurate as of February 5, 2010.

The money market rates February 2010 are as follows. EverBank offers the highest APY at 2.25%; minimum deposit required for this account is $1,500.

February 2010 money market rates with the second highest APY are offered by Franklin Synergy Bank; they are currently offering an APY of 1.75% but ask for a significant minimum deposit of $25,000.

EBSB Direct offers an APY of 1.67% on a minimum deposit of $5,000. Bank of Internet High Yield Savings offers an APY of 1.60% on a minimum deposit of $100. Capital One Costco also offers the same APY of 1.60% on a minimum deposit of $5,000.

CNB Bank Direct offers an APY of 1.50% and has a nominal minimum deposit regulation; they simply want a $1 minimum deposit.

American Express Bank FSB offers an APY of 1.50% and also asks for a basic deposit of $1. Dollar Savings Bank, however, asks for a minimum deposit of $1,000 for the same APY of 1.50%. First Trade Union Bank asks for an even greater minimum deposit of $2,500 for an APY of 1.50%.

Ally Bank is known for its no deposit regulation; it offers an APY of 1.49%. Nationwide Bank offers an APY of 1.45% if customers have deposited at least $1,000 in their account.

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.