With the ups and downs in the market one of the best things you can do is to open a high yield money market account. A high yield money market account allows you to save money and to earn a generous interest rate compared to traditional savings account and other saving vehicles. Understanding your options when it comes to saving money is the best way to plan for your short-term and long-term needs. One high yield money market account to consider is from My Banking Direct.
My Banking Direct High Yield Money Market Account
The high yield money market account from My Banking Direct offers a generous interest rate that is tiered, giving you an opportunity to earn more money based on the amount of money you invest. To earn a 1.25% APY (as of Sept 2011) you will need to deposit the initial amount of $5,000. If your daily balance falls below $5,000 you will only earn an interest rate of 0.25% and an APY of 0.25%. There are fees on the account and they can have a significant impact on the amount of money you can earn. It is also important to note that the interest rate is subject to change at any time. Considering fluctuations in the market, it is likely that a 1.25%APY will not last long and will likely go down. Of course when people start depending more on credit and start spending money again you will be able to earn a higher interest rate if My Banking Direct chooses to increase their APY. Right now the promotion for 1.25% is subject to change at any time and you may not be able to get this great deal if you do not act quickly. In the past My Banking Direct did not offer very high interest rates on their money market accounts, which does show investors that they may not be able to keep up with such a competitive interest rate on money market accounts for very long.
The History Of My Banking Direct
When you are choosing to open any type of investment it helps to understand more about the company you are working with. My Banking Direct is a service of New York Community Bank and they are insured by the FDIC. Any bank that is insured by the FDIC does come with a lower risk, making it a safer investment for your needs. New York Community Bank has been around since 1879 and has several different branches. This helps you to understand a little bit about their reputation and ability to properly handle their customer’s finances. One last thing to note is that they have about $38.53 billion in assets, which is comforting to know for any investor. Since money market accounts are such a low risk investment, it is pretty safe to say your account should be just fine in the hands of My Banking Direct.
Limitations To My Banking Direct
The high yield money market account from My Banking Direct does come with a few limitations. You may only have 6 withdrawals per month from the account using an ATM card or checks. There is a $4.95 monthly fee to use MoneyHQ, which is necessary in order for you to have any ACH transfers to the account. If you have more than 5 transfers, you will be charged additional fees on the money market account.
Is My Banking Direct offering the Highest Money Market Account rates? View the Rates Comparison chart to find out!
