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Highest Low-Minimum Money Market Accounts


There are now 3 money market bank accounts with low minimum deposit requirements and with interest rates over 4.00%. The latest bank to join this group is Giantbank.com. The interest rate of its money market account is 4.10% APY.

All 3 of these money market accounts have only a $1,000 minimum deposit requirement to earn the high rate. Unlike EmigrantDirect savings account, these money market accounts have check writing privileges. That's one of the main differences between a savings account and a money market account. Giantbank.com provides a good summary of this.

The only problem that I have with these banks is that they don't provide bank-to-bank ACH transfer capability like EmigrantDirect or ING Direct. To transfer using ACH, you'll have to initiate the ACH transfer from another bank. I wonder why this ACH transfer capability isn't yet widespread.

The top money market account remains at UmbrellaBank with a rate of 4.15%. UmbrellaBank.com also has what appears to be the best online banking website. The one drawback is that it doesn't have a good financial rating from Bankrate.com (only 2/5 stars). The other two banks have ratings of 4/5 stars.

Below is the summary of the top 3 banks. All rates are in APY.
  • 4.15% - UmbrellaBank.com, $1K min, checks, ATM rebates, CDs:1-year: 4.70%, 3-year: 4.90%, Background: Internet banking division of New South Federal Savings Bank based in Irondale, Alabama. Rating:2/5 stars (below industry average) Bankrate.com
  • 4.10% - Giantbank.com, $1K min, checks, CDs: 1-year: 4.70%, 3-year: 4.80%, Background: Internet Banking Division of Landmark Bank, N.A. with headquarters in Fort Lauderdale, Florida, Rating: 4/5 stars (sound) Bankrate.com
  • 4.08% - Assurance Partners Bank, $1K min, checks, ATM rebates, CDs: 1-year: 4.75%, 3-year: 5.00%, Background: Based in Carmel, Indiana with administrative headquarters in Bethesda, Maryland, Rating: 4/5 stars (sound) Bankrate.com
Anonymous   |     |   Comment #1
Gmac bank is 4% with a $500 minimum. It has checks, ATM refunds and ACH In/Out. Nice rates on CD as well.
Anonymous   |     |   Comment #4
Is GMAC a member of the FDIC?
Banking Guy
Banking Guy   |     |   Comment #2
Thanks for the inputs.

GMAC also has a good financial rating of 4/5 stars at Bankrate.com. I have more about GMAC Bank in this post that I wrote when GMAC money market account reached 4%.

GMAC does tend not to have the highest MM rates. Although, it has been much better than ING Direct. In my opinion, I would be willing to accept a little lower MM rate in return for ACH in/out and a good reputation.
Anonymous   |     |   Comment #5
Had Demand Notes for several years with the old GMAC...which went belly up during the Big R.  I got out about a year before.  Suggest one look at management and see who is "new" as well as who they are lending to given the old arrangement with GM loans died...notwithstanding FDIC.