A money market account (MMA) is a type of savings account that comes with higher interest rates as compared to other basic accounts. However, high-yield money market accounts usually require you to maintain a higher minimum balance. Such accounts can prove to be an excellent investment alternative for maximizing your savings, especially if you have a large amount of unused money. Moreover, these accounts are insured by the Federal Deposit Insurance Corporation (FDIC) at banking institutions and National Credit Union Administration (NCUA) at credit unions, which makes them a credible option.
If you want to invest in high-yield money market accounts, then read further to know your best options.
CIT Bank – Currently, with one of the highest APY rates, i.e., 1.75%, the CIT Bank high-yield money market accounts only require $100 for opening deposit. Furthermore, they don’t impose any monthly dues for maintenance and these accounts can be easily accessed via their official website or banking app. They don’t facilitate checking options and debit cards for ATM withdrawals, but you can make online transactions using their online platforms. However, every transaction made will cost you an additional $10.
UFB Direct – If you want to get some incredible APY rates in the market with incentives, then consider opening a high-yield money market account in UFB Direct. Offering an APY of 1.6%, you will deposit $5,000 while opening the account and maintain a balance equal or higher than that. If the minimum balance drops, then you will be charged $10 in that particular month. On the plus side, it provides the users with check-writing privileges, a free debit card, and zero charges for ATM withdrawals.
Capital One – Like UFB Direct, Capital One offers an APY of 1.6% on their money market accounts with no opening deposits. However, if you opt for Capital One’s MMA then you will have to maintain a minimum balance of $10,000 or more to cash on this APY rate. If you have a balance lower than $10,000, they will offer you with an APY of 0.85%. Additionally, they don’t levy any monthly maintenance costs and you can make unlimited ATM withdrawals. However, this account doesn’t come with a check-writing feature.
Barclays – If you don’t intend to use your savings in the near future then you can open a Barclays high-yield money market account which has zero monthly maintenance fees and no minimum deposit. It has an APY of 1.5%. However, this online MMA has no ATM networks and branches. Likewise, users aren’t offered with check-writing options.
Synchrony – The high-yield money market accounts by Synchrony don’t offer checking facilities, but one of its biggest benefits is that it neither has any minimum balance to maintain nor it has any monthly fee. Moreover, you are provided with bank cards, discounts on hotels and car rentals, and access to free ATMs. However, as compared to another MMAs, Synchrony’s APY (annual percentage yield) rate is quite low, i.e., 1.05%.
EverBank – EverBank MMAs come with an impressive introductory APY of 1.41% for a year but it requires an opening deposit of $5,000. However, the rate will go down to 1.1% after one year. Zero monthly service charges, check deposit via mobile app, check-writing, and ATM withdrawals are some perks that EverBank provides its customers. Moreover, it compensates any ATM dues levied by other banking institutions.
Sallie Mae – Popular for their student loans, Sallie Mae’s high-yield money market accounts are offered with an APY of 1.65%. They come with bonuses such as check writing, remote transactions, no minimum deposit and zero servicing fees. However, they don’t facilitate ATM withdrawals.
It is important to note that the APYs prescribed for money market accounts are subject to change. The frequency and type of change vary across banks and credit unions. Apart from the above-mentioned high-yield money market accounts, you can also check out MMAs offered by Bank of Internet, Ally, Discover, Nationwide, and Marcus by Goldman Sachs. Likewise, take a look at the MMAs provided by credit unions such as Self-Help and Premier Members.
Choosing a high-yield money market account
Putting aside your money in a high-yield money market account can be a good idea in the long-run. However, to make the desired profits, you need to understand your requirements as an investor. Do you want flexibility, low minimum account balance, or an APY guaranteeing lucrative returns? Before investing in a high-yield money market account, here are some factors that you should consider.
- The proposed APY rate
- Minimum account balance
- Zero or low monthly maintenance fees
- No or minimum opening deposit
- Online accessibility
- Additional perks such as check writing, ATM withdrawals, and remote check deposits
The parameters mentioned above might not be exhaustive to every saver as a result of contrasting needs. For example, an investor who is uncertain about their financial needs in the future will look for an MMA that enables ATM withdrawals, check-writing privileges, or user-friendly virtual platforms. Conversely, an investor with sufficient resources might just want a high-yield money market account with the highest APR and wouldn’t mind maintaining a high minimum account balance. So, it is advised that you prioritize your monetary practices and demands before investing in a high-yield money market account.
