The Best Bank Money Market Rates for June 12, 2009

PR Log (Press Release) – Jun 15, 2009 – Bank money market account rates moved down modestly for the week ending June 12, 2009.  The average of the top ten best money market account rates available nationally dropped from 2.00% to 1.98% for the week.  Unfortunately, the biggest force driving down the average even by this relatively slim sum was a drop in the best money market promotions.

The highest bank money market rate available comes from Corus Bank, which was also last week’s leader, with an interest rate of 2.09%.  Corus Bank led last week with a money market rate at 2.11%.  The second and third best money market rates switched for the week.  Nexity Bank reduced their money market rate to 2.01% from 2.11% which dropped this bank rate into third position.  iGOBanking continued to promote their money market rate at 2.02% which lifted their savings product into second position.  Three banks have money market yields of 2.00%; Nationwide Bank, AmTrust Direct and Discover Bank.  The low bank on the top ten list is Ally Bank with a money market account rate of 1.85%, five basis points or 5/100 below last weeks rate.

With short term CD rates dropping faster than money market rates the spread between a six month CD rate and bank money market rates is narrowing.  The average of the best six month CD rates ending the week at 2.03% bringing the spread between six month CD rates and money market rates to just five basis points.  The close proximity of these two bank rates makes the option to hold funds in a bank money market account, until the predicted rise in bank CD rates finally surfaces, a viable option.  

There are two noteworthy problems with this strategy.  First, money market rates are not fixed and can be reduced at any time by the financial institution at which the funds are held.  Granted, a significant drop is unlikely.  More importantly, evaluating the averages is just a starting point to find the best rates.  The difference between the average money market rate and the best rate is only 11 basis points while the spread between the average six month CD rate of 2.03% and the best six month CD rate of 2.52% is 49 basis points.  Averages as well as nationally available rates are just a starting point to find the best bank rates.  

SelectCDrates.com is the leading industry tool for selecting the best CD rates.  SelectCDrates.com provides bank rate data on banks locally and nationally to help consumers quickly find the best rates to fit their needs.  SelectCDrates.com achieves the goal of publishing the best rate information by searching for the highest bank rates with web crawlers, telephone surveys and local market research.  SelectCDrates.com staff provides current statistics on economics news that impacts the bank and credit markets as well as in depth articles on bank products and services.  To view all the bank CD rates and articles visit http://www.selectcdrates.com.