Here are the latest money market interest rates of the banks that I've been tracking on my blog. Note that these rates are sorted by APY, and represent institutions that I have accounts at, or have otherwise mentioned in my blog:
1.25% Discover Bank Online Savings
1.20% Ally Bank Online Savings
1.20% Shorebank Direct Online Savings**
1.10% HSBC Advance Online Savings
1.10% ING Direct Orange Savings
0.65% Citibank Ultimate Savings
0.65% Western FCU Money Market
0.40% Chase Plus Savings
0.30% E*TRADE Complete Savings
0.14% PayPal Money Market*
NOTES: *The PayPal Money Market fund is NOT FDIC insured.
**On August 20, 2010, ShoreBank was closed by regulators, and the Federal Deposit Insurance Corporation (FDIC) was named Receiver. Accounts were transferred to Urban Partnership Bank of Chicago. The FDIC has issued a press release regarding this matter.
Rates are believed to be accurate as of 11/4/10. I did not include banks that had special, or introductory rates in the list because they are not ongoing interest rates. I am also not including non-liquid accounts such as CD's in the list. By a small margin, Discover Bank has the highest interest rate of the banks that I'm tracking.
I want to acknowledge that Barbara Friedberg recently mentioned my post Pay The Early Withdrawal Penalty on her blog. In this post, I discuss the strategy of opening a long-term, 5-year CD with a low early withdrawal penalty as an alternative to keeping your cash in a money market account. If you are searching for a higher savings rate that might be something to consider.
So, that is the latest list of money market rates. Please let me know if you know of any higher interest rates.
DC
Creating a Retirement "Paycheck"
2 months ago
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3 comments:
Very nice done. I like it very much!
US interest rates are so low! Glad I'm not a retiree trying to live on interest income. Our savings account are paying 6% on average (for those who are diligent) although our mortgage rates are over 7% compared to the US mortgage rates appears to range from 4 to 4%
Thanks for your comment. For US investors, there is a bank called EverBank that allows investments in foreign CDs such as Australia. They are currently paying in the range of 3-3.5% interest. The main risk factor is currency fluctuation. Also, there is a cost associated with converting from one currency to another.
I never opened an account with EverBank, but I had considered it in the past. A few years back, they offered an Icelandic Krona CD that paid over 13% interest. Even with that high rate, I'm sure that that investors would have lost out due to a decline in value of that currency.
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