New 4.5% Money Market Account
Oct 23, 2005 - 4:33 PM by Ken Tumin
Superior Savings of New England is offering a new money market account with a rate of 4.50% APY. This is now the nation's top money market/savings account rate. However, unlike EmigrantDirect, there is a hefty minimum balance requirement.
This Superior Money Market account requires a $25K balance to get the 4.50%. If the balance drops below $25K, the rate goes to 0%. If the balance drops below $2.5K, a $10 monthly fee is applied. There's also a maximum limit on this account of $500K.
The other thing that makes this less attractive than EmigrantDirect is that it requires mailing paper checks or deposit slips to make deposits. There doesn't seem to be a way to do online bank-to-bank transfers.
One advantage this Superior Money Market account has over savings account like EmigrantDirect is that it has check writing access.
The bank also offers a 1-year CD with the same rate and minimum $25K balance requirement. There's nothing special about the CD. It is a decent rate for a 1-year CD, but I know of 3 others offering 4.6%. The advantage of the CD is you lock in the rate for a year. However, with rising interest rates, this is probably not an advantage.
One has to question if Superior Savings will keep this rate competitive like EmigrantDirect has done as interest rates rise. If Superior Savings doesn't keep the rate competitive, you could always withdraw the money and close the account. I couldn't find if there's a closing fee.
Check out the bank's FAQ for the official details.
Like all the banks that I mention, it's FDIC insured. However, it's not a large bank. There are only two branches in Connecticut and New York. Bankrate.com gives it a 3 out 5 star safe and sound rating. 3 stars is defined as performing which is below a 4-star sound rating and above a 2-star below industry average rating.
This Superior Money Market account requires a $25K balance to get the 4.50%. If the balance drops below $25K, the rate goes to 0%. If the balance drops below $2.5K, a $10 monthly fee is applied. There's also a maximum limit on this account of $500K.
The other thing that makes this less attractive than EmigrantDirect is that it requires mailing paper checks or deposit slips to make deposits. There doesn't seem to be a way to do online bank-to-bank transfers.
One advantage this Superior Money Market account has over savings account like EmigrantDirect is that it has check writing access.
The bank also offers a 1-year CD with the same rate and minimum $25K balance requirement. There's nothing special about the CD. It is a decent rate for a 1-year CD, but I know of 3 others offering 4.6%. The advantage of the CD is you lock in the rate for a year. However, with rising interest rates, this is probably not an advantage.
One has to question if Superior Savings will keep this rate competitive like EmigrantDirect has done as interest rates rise. If Superior Savings doesn't keep the rate competitive, you could always withdraw the money and close the account. I couldn't find if there's a closing fee.
Check out the bank's FAQ for the official details.
Like all the banks that I mention, it's FDIC insured. However, it's not a large bank. There are only two branches in Connecticut and New York. Bankrate.com gives it a 3 out 5 star safe and sound rating. 3 stars is defined as performing which is below a 4-star sound rating and above a 2-star below industry average rating.
Featured Accounts
Useful Resources
Nationwide Savings Accounts
Anonymous - #1, Thursday, December 8, 2005 - 7:11 PM
BankRate now rates it with 4 stars.
Banking Guy (anonymous) - #2, Friday, December 9, 2005 - 5:04 PM
I do see it listed as 4 stars in the MMA rate table. However, at the individual page for Superior, it still shows 3 stars. I've noticed this problem before. I wonder what bankrate's problem is. Nevertheless, thanks for the info.
Add Your Comment
Post a Comment