Dedicated to Deposits: Deals, Data, and Discussion

Opened a KeyDirect Money Market Account Last Year? Beware!


A reader just informed me of a questionable marketing tactic that has been done at KeyDirect. In January, KeyDirect created a new money market account called the Optimum Money Market Savings with a high interest rate. The existing money market account called the Premier Money Market Account was retained and the interest rate was quietly reduced. I was told by the reader that the rate is well below 4%.

Customers are allowed to switch to this new Optimum account but they need to make a specific request. The change can be done without new checks or a new account number.

You have to wonder how many KeyDirect customers who opened a Premier Money Market Account before this year haven't noticed the change in interest rates. I can only find the rates for the Optimum Money Market Savings Account on their website. Currently the APY is at 4.75%. You also have to wonder how much this is profiting KeyDirect.

If you are a KeyDirect customer who still has a Premier Money Market Account, you may want to consider finding a new bank instead of switching to the new Optimum account. In another year, they may do this same tactic. There are now many banks with comparable interest rates.