NEW YORK (RateWatch) – Bank customers looking for a deposit account have four basic options: a savings account, a checking account, a certificate of deposit or a money market account.
It’s no secret that none of these accounts have offered particularly strong interest rates as of late. According to data from RateWatch, the average interest rate on a standard savings account in the U.S. is currently 0.173%. A 12-month CD offers a higher interest rate in exchange for the reduced liquidity, but not by much: CDs currently average a 0.509% return, down 9 basis points from last week.
Nestled between the two loan products are money market accounts, which have the liquidity and security of a savings account but are linked to a brokerage account to provide better returns. Alas, their prevailing interest rates aren’t exactly blowing anyone away – the average rate is a paltry 0.240%, which last year led MainStreet to declare that you were better off going with a short-term CD.
Still, some people are too concerned with liquidity to tie up their money in a CD for even a few months. For them, there’s good news: Much like CDs and savings accounts, there are still a select few money market accounts that offer a healthy return.
We combed through RateWatch data to find the top money market rates out there, and while some require a very high minimum deposit, the opportunity for security, liquidity and a decent return will make them an attractive option for some savers. Here are the top 10:
Bank: Family Financial Credit Union (Mich.)
Rate: 2.21% APY
Minimum Deposit: $25,000
Bank: Heartland Community Bank (Ariz.)
Rate: 2.02% APY
Minimum Deposit: $250,000
Bank: Fort Dodge Family Credit Union (Iowa)
Rate: 2.02% APY
Minimum Deposit: $10,000