When people are thinking about putting money into the bank, they consider average money market rates and returns. MMAs are ideal for those who want to earn a higher interest rate than a regular savings account. Also, MMAs differ from CD accounts is because they often offer more flexibility regarding check writing and withdrawal privileges.
Keep in mind that the MMAs mentioned here are exclusively those offered by banks and some credit unions and differ from money market mutual fund investing. The average rate for MMAs is variable and fluctuates often. Right now, they may fall between 0.08% APY – 0.11%. It’s no secret that banks that do many operations online tend to offer higher rates and better returns than traditional banks.
Another reason why the rate may vary so much is that banks offer multiple tiers, each with its minimum balance requirement. The average rate for somebody who opts for a lower-tier with a $1,000 minimum deposit requirement will be a smaller percentage than those who can join a higher tier with a $10,000 minimum deposit requirement.
When comparing average money market rates, look for an account that offers a combination of a competitive APY % as well as everything else that meets your needs. Keep an eye out for cons such as excessive transaction fees, monthly fees, and any other type of fee that seems unnecessary. One way to find out if a fee is necessary is to see if many other banks are charging it as well. Read reviews to see if there are any complaints to make sure.
Average Money Market Rates and Fees
Usually, there may be a fee with many financial institutions if you make too many transactions via your savings or money market account per cycle. Still, the Federal Reserve Board has recently suspended that regulation. This regulation is something else to keep in mind when comparing banks.
Also, when looking into average money market rates, safety, customer service, and tech support are essential considerations for anything regarding online banking. Make sure you put your money in an account backed by the FDIC or NCUA – which protects accounts up to a certain amount – usually $250,000.
Overall, the rate should account for approximately 50% of your decision-making, with the remaining factors accounting for the other 50%.
Where is a good bank to start your research with? Try looking into CIT Bank, as it offers a good balance of all of these factors and decent average money market rates. It’s also highly rated and heavily praised compared to several other online banks.