Tuesday, June 28, 2016

Money Market Rates June 2016

Here are the latest money market interest rates of the banks that I've been tracking on my blog. Note that these rates are sorted by APY, and represent institutions that I have accounts at, or have otherwise mentioned in my blog:

1.05% GS (Goldman Sachs) Bank Online Savings
1.00% Ally Bank Online Savings
0.95% Discover Bank Online Savings
0.95% FNBO Direct Online Savings
0.90% American Express High Yield Savings
0.75% Capital One 360 Savings
0.25% Unify (Western) FCU Money Market
0.03% Citibank Savings Plus
0.03% Chase Plus Savings

In some cases, MMA interest rates are tiered. If this is the case, I usually report the interest rate at the $10,000 tier in these updates. Rates are believed to be accurate as of 6/27/16. I did not include banks that had special, or introductory rates in the list because they are not ongoing interest rates. I am also not including non-liquid accounts such as CD's in the list. I have included one credit union in the list so that readers have a comparison point with banks. I recently added GE Capital Bank has changed its name to GS (Goldman Sachs) Bank. By a small margin, GS Bank Online Savings retains the top position on this list yielding 1.05% APY.

Western Federal Credit Union has announced that they have changed their name to Unify Financial Credit Union. All accounts and services are intended to remain the same after the name change.

The frequent changes show how variable the money market is. Because this is a constantly moving target, it has been very hard to keep track of the rates that I've been getting in my various money market accounts, and this is the main reason I've decided to compile a list of these annual percentage yields.

So, that is the latest list of money market rates. Please let me know if you know of any higher interest rates.

PFS

3 comments:

  1. Much better than the .001% I am getting from my bank. But I am trying to avoid account proliferation. So I haven't expanded. I miss the day of 5% MMA. But I don't think I'll ever see that rate again.

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  2. I say to never say never...

    Actually, I have a closed-end bond fund (CA, FED, and AMT tax-free) that has returned over 20% in the past year. It is overall less risky than the general stock market.

    But, I'll have to put in the general disclaimer that your results may differ. Tax-free bond funds are not suitable for all investors.

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    Replies
    1. Yes, closed end Municipal Bond Fund have done well in the past year. I have one that paid 6% double tax free (state and fed) when I bought it in 2015 and has also gained 19% in share price. I didn't put much into it because of the inverse relationship of the principal versus interest rates, which is the negative and risk of bond funds. At least with an MMA, the principal is guaranteed, in 99% of the cases.

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