Today we have a featured post on money market accounts, a special kind of savings account for U.S. residents. Hope it will be useful to my American readers!
Money Market Accounts (MMA) are specific types of savings accounts. What sets them apart from the basic savings accounts is the interest in which the savings earn. If you want to just put your money ahead of a bigger project in the future, this type of account is perfect for such a course.
Are you considering on opening an MMA? Worry not because I’ve got you covered. In a pursuit to discover the best money market accounts, I came across different money market accounts which I feel compelled to share with you.
1. Ally Bank
This MMA comes top on my list because of its comprehensive packages. Its operations are strictly online hence the fair rates. Another feature is the accessibility of ATMs. Regardless of how much you have in your account, you are qualified to get a 0.85% Annual Percentage Yield (APY). No fees are charged towards the maintenance and minimum balances of the account. You can withdraw your funds from the MMA without any penalties. The only set back is that you are charged $25 when you overdraw in one day.
2. Sallie Mae
The Sally Mae MMA is well-known for student loans though it is not restricted to student loans only. The account comes with a 0.9% APY. The good news is that it does not require a minimum deposit which gives you a platform to save at your own pace.
There are no monthly fees for maintenance of the account. Just like Ally Bank, you have the provision of transferring money from the MMA to your linked bank account, taking around 2-3 working days. The overdrawing charge is $19 which is slightly cheaper than Ally Bank.
One disadvantage of the account is there is no option for ATM withdraws which could make money in the account hard to access.
3. EverBank Yield Pledge
This particular bank assures its prospective clients that its interest rates will remain among the top 5% of banks countrywide. For new account holders, it offers a 1.11% APY for a year on condition that you deposit a minimum of $250,000!! Anyway, the advantage is that there are no maintenance fees involved on condition that you have positive balances in your account.
This particular bank offers 1.02% APY. It has low overhead which it returns part of the savings as a bonus. The bonus, usually $25, is donated to a charity of your choice whenever you open a new account. There is an affiliate marketing concept where if you recommend your friend to open an account, you get an additional $25 for donation.
Convenience is another attribute it possesses. If you want to transfer funds to an external bank, it takes 2-3days to complete the transaction. Other banks take up to a total of 10 days. One of the challenges, however, is that the minimum deposit required to open the account is $250!!
5. Bank of Internet
For this particular one, you are not obliged to have a minimum balance in the account. It offers a 0.75% APY. Services that are included are mobile deposits and check writing. It is a low maintenance account. An interesting feature is that there is a provision paying bills automatically and mobile banking services. Mobile banking is a perfect way of accessing your funds quickly with no hustles of transferring to an external bank. A downside though is that a $30 outgoing wire fee is charged during the transaction.
6. Capital One 360
This MMA offers a 1.10% APY for people with a minimum balance of $10,000. For those with less, the APY is 0.60%. The key advantage is that you can access funds via phone which makes transfers easier. Most importantly, there are no monthly charges which make it a pretty affordable account to maintain.
With such a list, it should be no longer be a big feat to discover the best money market accounts. They are an excellent way of accumulating savings and earning interest. Analyze and choose carefully your preferred account, one that will be easy to maintain depending on your current financial status. Take the bold step and open such an account and watch your savings grow.