Best Money Market Rates

As an investor, one of your top focuses must be finding the best possible return rates on your investments. Smart investors in this day and age are looking to many different investment products, since diversification is something that can lead to more success and better security. That being said, finding the best money market rates can sometimes be an inexact science, since these rates are often clouded by other fees. As an interested investor, you need to look beyond the best money market rates to see what lies underneath, as this will determine the actual return on your investment amount.

Charting the fees for money market accounts
Though it might be nice to see that one company offers 2.5% on a money market account, you need to understand why this APY is so high. Your average percentage yield will ultimately include things like maintenance fees, annual fees, and any custodial fees that might exist. If you are paying money every time you take the money out and put it in, then your actual percentage yield will be lower than advertised. As you shop the various money market account providers, make sure that you take note of the fees they charge. Avoid outrageous fee chargers at all costs.

At current standing, Sallie Mae offers the best available money market rates at 1.4% APY. Discover Bank, Capital One, and American Express all offer rates north of 1.3%.

The conditions that impact the best money market rates
Looking past the fees, you should also take the time to consider the terms and conditions that will impact your ability to turn a profit. Many of the companies that offer the best money market rates do so because they have difficult conditions to meet. Perhaps they have an exceedingly high deposit minimum or maybe they force customers to keep a minimum amount of money in the account. Whatever the case, these special terms and conditions will make even the best money market rates look sour in the end. You will want to understand these terms and compare them along with published APY rates, as this will give you a complete picture of what a company is all about.

One of the best things about having money in an account of this nature is that you have the freedom to put it in, take it out, and move it around as you please. When this ability is taken away, the money market accounts lose a bit of their luster, as they become very similar to other investment products that offer a higher return. Make sure that the investment companies you research are not stripping away these abilities in exchange for the best money market rates. They will pull customers in with these tactics, so don’t allow yourself to get caught up in the hype.

Instead, look for companies that combine solid money market rates with quality service. They should have terms that make sense. Even if you get a lower APY in the 1.5% range, you can rest easy knowing that you have full control over your money and that no company is going to handcuff when and where you can move that money.