KeyDirect Raises Money Market Account Yield to 5.35%

Update 1/1/08: The rate has fallen. The current yield is 4.75% APY.

KeyDirect has increased the yield on its Key Signature Money Market Savings from 5.25% to 5.35% APY. The yield is good on all balances up to $250K. A $50 minimum initial deposit is required to open the account.

For more info on this money market account please refer to my August 9th post. As I mentioned in that post, KeyDirect has made this into a very competitive money market account by getting rid of the rate tiers. Another nice perk that many high yield savings accounts lack is the limited check writing with free checks. The main drawback in my opinion is the dollar limits on ACH transfers. According to the banking rep, inbound and outbound ACH transfers are limited to $2K/day, $10K/week and $20K/month. These are only for ACH transfers initiated at KeyDirect. I was told there are no such limitations for ACH transfers initiated from your other banks.

Perhaps the biggest drawback may be if it's not available in your state. KeyDirect accounts are only for people who live in 37 states and in DC which don't have KeyBank branches. KeyDirect accounts are not available in AK, CO, ID, IN, KY, ME, MI, NY, OH, OR, UT, VT, or WA. KeyBank is based in Cleveland, Ohio and has been FDIC insured since 1956 (FDIC Certificate # 17534).

Thanks to the reader who mentioned this rate update in the finding deals post.