View Full Version : What is a competitive money market rate of interest?
04-04-2005, 08:53 AM
I have a money market account at Bank of America, which advertises "competitive rates" of interest, yet it is only .06%, which I find paltry. The only reason I keep it there is that all my other accounts are there, and I find it convenient to be able to transfer money between accounts online, and I need the liquidity of a money market account. What is a competitive money market rate for a balance of $3000-5000? Why would BofA be so low?
04-04-2005, 10:30 AM
You could get more through a money market fund in mutual fund company. You can transfer money at will and write checks but will not have FDIC insurance like a bank.
Looks like 2.4% is possible. (http://flagship4.vanguard.com/VGApp/hnw/FundsByType#Taxable_Money_Market_Money_Market)
04-04-2005, 11:56 AM
Thanks, I have found that even PayPal has a money market account (http://www.paypal.com/cgi-bin/webscr?cmd=_upgrade-interest-marcom&outside=1) that pays 2.41%. I still don't know why BofA is so low (though I did make an error in my OP, the BofA money market is .6%, not .06%). Apparently they make so much off of charging fees for people to bank there, they realized they don't need to pay interest.
No wonder Americans don't save as much as they used to; it's too expensive.
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