Bank Deals, Money Market Rates

Do you have a large sum of money that needs to be parked in a savings account for a while, such as a down payment on a home? VirtualBank has an eMoney market account that is earning 1.06 percent annual percentage yield (APY) on deposits of $100,000 and up. The money market rate is current as of June 20, 2011. Interest rates are subject to change at any time. Tiered interest rates are available for lower balances. Details of the money market offer include:

• Minimum opening deposit of $100
• No monthly fees
• Free online statements
• Free transfers from your existing personal checking account
• Free electronic deposits and withdrawals
• Maximum of six withdrawals and preauthorized transfers per statement cycle

Interest on money market accounts is compounded daily and credited monthly. Fees on the account may reduce your earnings. The money market account does not allow wire transfers, mail in deposits or issuance of bank checks. During the first 30 days that the money market is open there will be a hold on funds deposited into the account for 10 business days.

VirtualBank is the Internet banking division of Lydian Private Bank, based in Palm Beach County, Fla. Accounts held at the bank are insured by the Federal Deposit Insurance Corp. (FDIC).

Seacoast Commerce Bank of San Diego has an Investors Money Market Account earning 1.25 percent annual percentage yield (APY). The interest rate is current as of May 31, 2011.

The money market requires a minimum deposit of $25,000. Once the account is open you need a minimum daily balance of $25,000 to continue earning the interest rate. If you don’t meet the balance requirement, the monthly service fee is $25. The Investors Money Market Account can be opened by personal and business customers.

If you don’t have as much money to get started, you can open a Basic Money Market Account with a minimum opening deposit of $2,500. The account requires a minimum daily balance of $2,500 to avoid a $12 monthly fee. You get six free automatic transfers per statement cycle, and that includes up to six checks. The money market account has an interest rate of 0.25 percent APY.

Seacoast Commerce Bank also offers a Premium Business Money Market that requires a minimum opening deposit of $500 and has tiered interest rates. The High Yield Business Money Market, which also has tiered interest rates, requires a minimum opening deposit of $25,000 and a minimum daily balance is $1,000.

Everbank has a money market account with a bonus interest rate of 1.26 percent annual percentage yield (APY) and a first-year rate of 1.07 percent. The Yield Pledge Money Market Account is offering the three-month bonus rate to people opening a money market for the first time.

The bonus interest rate is for balances up to $50,000. Balances above that amount earn a variable ongoing money market rate of 1.01 percent APY. Interest rates are current as of May 20, 2011.

Other details of the high-yield money market offer include:

• Minimum opening balance of $1,500
• Six withdrawals/transfers per month
• Free online and mobile banking
• Make deposits from home
• Available as an IRA
• $8.95 monthly fee if balance falls below $5,000
• Insured by Federal Deposit Insurance Corp. (FDIC)

Islandia, N.Y.-based Everbank is also offering $500 off an appraisal if you apply for a mortgage loan. The appraisal offer applies to new mortgage applications only, not previous applications or those already in progress. The appraisal fee would be reimbursed at closing. The offer cannot be combined with any other offer.

With U.S. savings rates currently averaging just 0.15 percent it’s important to shop around for the best deals from banks that consistenly offer competitive rates. To find the banks with the best interest rates MoneyRates.com has done an analysis of what was offered for the first quarter of 2011 in its America’s Best Rates feature.

MoneyRates.com found 7 banks that had savings rates that were above 1 percent on average during the first quarter. American Express topped the list with an average savings rate of 1.269 percent. Discover Bank came in second with 1.224 percent, followed by Capital One Bank with 1.221 percent.

Banks that made the list consistently have more competitive rates. But overall they all saw savings account rates slip in the quarter, reflecting a national trend. Eight of the ten banks listed for the first quarter were also on the list in the previous period.

The analysis also found three money market rates that averaged over 1 percent during the quarter. OneWest had the highest money money market rate at 1.100 percent, followed by Discover Bank (1.079 percent) and Ally Bank (1.070 percent ).

Hudson City has a money market that earns 1.25 percent annual percentage yield (APY). The money market rate applies to balances of $2,500 and up. Balances that fall below that amount earn 1 percent APY. The money market rates are current as of March 18, 2011. Other details of the money market deal include:

• Interest rates are subject to change without notice
• Interest is compounded daily and monthly
• Statement format
• Limited withdrawals and transfers
• Insured by Federal Deposit Insurance Corp. (FDIC)
• Telephone banking

Hudson City also offers a money market checking account that earns interest. Balances of $25,000 and up earn a higher interest rate, which is currently 0.85 percent APY. Accounts with balances below $25,000 earn 0.6 percent APY. Money market accounts with balances of less than $10,000 are charged a $10 monthly fee. Accounts also have limited check writing and third party payments, unlimited deposits and in-person withdrawals and free debit/ATM cards.

Bank accounts at Hudson City are available to individuals who live or work in New York, New Jersey, Connecticut, Pennsylvania and Delaware. Accounts can be opened online. Hudson City has been named by Forbes magazine to be among the best managed banks in America.