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POSTED ON BY Ken Tumin
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.
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
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.