Comments on: Best Money Market Accounts (MMA) and High Yield Bank Rates

By: Raymond

Raymond — Tue, 05 May 2009 07:03:01 +0000

PeterPiper,

Yes you are correct. OneWest Bank has acquired the assets of former defunct bank IndyMac. According to recent news sources, the Federal Deposit Insurance Corp. indicates has announced the completed sale of IndyMac Federal Bank, one of the largest casualties of the housing bust, to OneWest Bank. OneWest Bank will assume all deposits of IndyMac’s 33 branches, which will reopen as branches of OneWest, with deposits continuing to be insured by the FDIC.

As the new OneWest bank is undergoing a transition period, I guess that’s why a visit to their new website at this time reveals the old IndyMac site.

By: PeterPiper

PeterPiper — Mon, 04 May 2009 11:36:45 +0000

Did One West Bank buy out IndyMac Bank? I thought IndyMac went out of business a year ago after being shuttered by the FDIC due to a run on the bank? I guess from the looks of things they are back in business. Same website content, different name I guess

By: Raymond

Raymond — Fri, 01 May 2009 10:07:01 +0000

Dawn,

I think in general CD deposits tend to offer banking customers a better rate of return than most money market accounts. There are exceptions of course but because you are agreeing to lock up your money for the length of time stipulated by the CD deposit offer, your willingness to give up that immediate liquidity usually gets you a higher interest rate of return. Money Markets have pretty high liquidity compared to CD deposits so thus tend to offer lower APY yields.

By: Dawn

Dawn — Sat, 25 Apr 2009 18:30:52 +0000

Raymond,

Do money market accounts offer better rates than CDs? I have several certificate of deposits…they earn a pretty good rate. I just wish they were more liquid and not locked up for long periods of time. Do you MMA accounts are the answer and if so…where do you recommend I open one?

By: Raymond

Raymond — Wed, 11 Mar 2009 07:53:07 +0000

Basically, money market accounts are hybrid in-betweens of traditional bank checking accounts and high yield savings accounts. It’s basically a financial product offered for convenience sake. Some people would prefer to have only one account as opposed to carrying around multiple bank accounts for different specialized purposes. Money market accounts offer the best and worst of both worlds – they offer the higher interest rates yields of high yield savings accounts and the check writing, ATM accessibility privileges of checking accounts, but then they are also limited by the 6 monthly ACH transfer limits of ordinary savings accounts. It’s always a tradeoff…

By: Dawn

Dawn — Wed, 11 Mar 2009 07:21:27 +0000

So…basically money market bank accounts are the same as ordinary bank high yield savings accounts then? I don’t get why banks insist on coming up with so many different financial products when they are all essentially overlapping offers.

Do you think I can get a better bank savings interest rate with a money market account over a regular high interest savings account with a bank?