Last month I reviewed Acacaia Federal Savings Bank and its Metro Checking Account which pays 1.00% APY. Since that post, Acacia Federal has increased the rate of its money market account so it also pays 1.00% APY. It's a tiered account, and the 1.00% APY requires a minimum balance of $25,000. The rate is only 0.25% for balances up to $10,000. For balances between $10,000 and $25,000, the rate is 0.50%. These rates are listed in the Acacia Federal deposit rates page as of 6/6/2012.
Details of the money market account are provided in Acacia Federal's money market page. There's a $10 monthly service fee for balances under $1,000. There's also a $7 fee for each check in excess of 3 per month.
Just as I mentioned in my Acacia Federal checking review, I'm doubtful that this top rate will last. Two years ago Acacia Federal offered a high rate on its Top Choice Checking. It started off with a 1.50% APY in March 2010. The rate fell to 1.25% in August 2010, and it kept falling quickly after that. The rate is now only 0.20%.
Another sign that the rate won't last is the bank's 5-year CD yield. It's only 1.00%. So currently the checking, money market and the 5-year CD all have the same rate.
On the rates page, there are links to the online application. You can select this Tiered Money Market Account in the application. It's an Andera application which allows funding via an ACH transfer from your existing checking or savings accounts. Minimum initial deposit is $1,000.
From the bank's About page:
Acacia Federal Savings Bank (Acacia Federal) is a thrift institution which has been operating in the Washington DC Metro area since it opened in March 1985. It is a subsidiary of Acacia Life Insurance Company, a UNIFI Company.
Acacia Federal runs its nationwide deposit operation and conducts regional loan production from its headquarters in Falls Church, Virginia.
The bank has an overall health score at DepositAccounts.com of 3 stars (out of 5) with a Texas ratio of 36.31% (below average) based on March 2012 data. Please refer to our financial overview of Acacia Federal Savings Bank for more details. The bank has been a FDIC member since 1985 (FDIC Certificate # 32266).
How This Money Market Rate Compares
The best nationally available money market account rate is 1.25% at EverBank. However, this is only an intro rate that's guaranteed for the first 6 months. TIAA Direct is offering a 1.25% APY on its money market account. This isn't an intro rate, but there's no guarantee how long it will last. TIAA Direct is a new internet bank so it doesn't have much history.