OneUnited Bank is currently offering the best savings account at 5.30% APY with an interest rate of 5.20%. The minimum deposit amount is $1,000 to open with interest on savings compounded and credited quarterly. You can deposit through ACH transfer, mail in a check or deposit in any of OneUniteid Brank branch locations.

This FDIC insured E-Savings Account has no monthly maintenance fees. However, this rule doesn’t apply when you are depositing a checking into an account with insufficient funds.

One of the great things about this savings account besides the 5.30% APY is that OneUnited Bank gives you access to over 5,000 surcharges free ATM locations nationwide through the FastBank and SUM networks. Customers can also withdraw funds online by simply registering online banking and doing a simple funds transfer.

For more information and instructions on how to apply, please visit OneUnited Bank’s E-Savings account homepage.

As the money market rates stoops lower, the Corus Bank offers a relatively higher rate on its money market accounts. The rate is 4.98% with a minimum requirement of $10,000. If this amount is maintained no money is charged for the service.

Corus Bank was incorporated in 1958 in the state of Minnesota and now headquartered in Chicago, Illinois. Corus has eleven banking branches in the Chicago area, which offer a wide range of deposit products to customers. The bank is quite reliable with nearly 10 billion dollars in assets. Plus,the bank is FDIC insured.

They offer two types of money market accounts.
The Business Ultimate Money Market and the Business Classic Money Market. However, the Business Money Market Account is the bank’s main focus since the rate offered on Classic Money Market account is only .05% for a minimum deposit of $2500.

Its money market deposit account offers an unlimited in-person withdrawal, either by mail or by ATM. Hence, offering a greater control over your account. Moreover, up to six pre-authorized withdrawals are allowed per statement cycle, according to the Federal Regulation. The interest is compounded monthly. It charges no money for ATM transactions, cheques or monthly statements. One attractive feature is the ability to transfer money through their Teller Phone System. This ingenious system allows the investors to activate ATM/Check Card, obtain current information on the bank account, order checks and listen to detailed information about your withdrawals and debts. Corus bank offers identity protection for greater security of its customer’s accounts.

Compared to the other available offers, this one seems viable for those with less amount of money to deposit. No doubt, Bay Financial Bank offers more interest rate but its minimum requirement is also of 900K. But those looking for high interest rates with lower money deposits should look for banks such as EverBank money market rates.

So if you want to open a Corus Bank’s Business Ultimate Money Market Account then apply here.

UFB Direct dropped its 5.31% APY saving account rate to 5.12% APY and is still considered as the best offer since the amount of minimum deposit is $1 only. The drop in Saving Account Rates is still spawning investors as the bank’s rates are consistent; no introductory rates like Umbrella Bank’s. Moreover, UFB Direct’s Absolute Saving Account which replaced the old HYMMSA, has gained popularity among the investors due to its unique features.

The Absolute Saving Account requires no minimum opening deposit balance. The fact that the bank provides efficient online banking and has no account service charges is very convenient for investors. The most attractive feature is the free ATM card use with every account only for $4.50 per month in ATM reimbursements. Moreover, the bank allows custodial accounts and beneficiaries. One of the salient features of Absolute Saving Account is the wire transfers with free incoming and $20 outgoing. Its other features include postage paid envelopes for mailing deposits, statements sent by default and the ability to write unlimited cheques through a free checking account.

However, the account does not offer free ACH transfer. It charges $2 for deposits and withdrawls through their MoneyHQ service. This service allow user to initiate electronic fund transfer. Plus, few customers are not satisfied with its online banking services and its customer services. A person commented:
“I just opened an account on UFB. They don’t allow you to change the ATM pin number. When you call them, the cs ask your full SSN. Their online server asks only one password. Most updated online banks have rotated security questions.”

UFB Direct, previously owned by SkyBank, is now owned and operated by Huntington National Bank. This bank is FDIC insured through Huntington Bank (Certificate Number: 6560).

So if you want to open their Absolute Saving Accounts, apply here.

OneUnited Bank is offering a rate of 5.30 % APY on its saving account with a minimum requirement of $ 1000. OneUnited bank branches are located in California, Florida and Massachusetts, with executive offices in Boston, Los Angeles and Miami. The bank is FDIC insured with state-of-the-art technology. OneUnited Bank is very credible and had been awarded highest Bank Enterprise Award by the U.S. Department of Treasury in 2006, 2005 and 2004. However, there are maintenance charges of about $8 per month.

OneUnited Bank has a wide variety of saving accounts to choose from consumer to business products. It can include offers of a high rate with 5.3 % APY; accounts such as Gold E saving with a minimum deposit of $ 1000 or the special saving accounts for youth under 18 called the UNITY Youth Savings that only requires a minimum deposit of $10.00 and has no service charges. The bank offers great convenience to the customers which includes free online banking - where you can access your account 24 hours a day, transfer money from your account and opt for automatic saving program - and 24 hour telephone banking. Plus, there is no cheque cashing fees. However, the interest for this bank is compounded quarterly unlike Umbrella Bank’s where it is compounded daily.

Umbrella Bank, part of New South Federal Savings Bank located in Birmingham, Alabama is currently offering an introductory Green Day 5.50% APY savings account. The actual rate on this savings account is 5.35% with a minimum deposit of $100 USD. Once the account has been opened, it will be locked in for 90 days with a $30 closing fee if you want to close it within the 90 day period. You can fund the account either by a cashier’s check sent by Fedex or you can wire it over. Umbrella Bank doesn’t accept ACH transfers as an initial deposit. The interest rate on the account depend on the daily balance following the initial 90 day promotional period. You can view the summary of the 3 tiers here.

Umbrella Bank is an internet bank geared towards the customer convience of having everything online with great phone support. The downside of a great rate and convience is the lack of physical locations and the cost of withdrawing money through ATMs of another bank.

Although this Umbrella Bank Green Day Savings Account had a 6.00% APY introductory in August of 2007, this 5.50% APY savings account promotional still stands as the best savings account rate among internet bank offers.

With the commencement of 2008, the money markets rates have dropped for most of the banks. This means that EverBank’s domination has diminished giving Bay Financial Bank the lead. Bay Financial Bank offers a money market rate of 5.17% beating Ever Bank’s 5.01%. However, its minimum deposit might deprecate potential investors. That is, the minimum requirement of 900K is only suitable for business customers who can afford to have huge amount of money stocked into their money market account. Therefore, those who want to invest in smaller amounts, should look for better options elsewhere, since its rate, for $ 2500 or less, is only 0.75 %. However, the interest compounds daily and is paid monthly. For accounts having $2500 or more, there are no service charges.

Bay Financial is a federally chartered stock institution, headquartered in Tampa, Florida. It has no other branches. The Bay Financial Bank is FDIC insured and well-reputed. Their website, however, might discourage potential investors, as the website does not provide adequate details about their deals and offers. Even the bank’s history page is too brief and might cast some doubt on new customers. Despite the skepticism provoked by the website, the bank, itself, is quite credible and was rated “satisfactory” by Office of Thrift Supervision.

“INSTITUTION’S CRA RATING: Bay Financial is rated “Satisfactory record of meeting community credit needs.”
Bay Financial was assigned a CRA rating of “Satisfactory record of meeting community credit needs as a result of the evaluation conducted as of October 6, 1997.”

According to their review, no complaints were piled against the bank which shows that their customers are complacent with the bank’s services. The bank is more reliable and popular for its mortgage and loan policies as they have an expertise in that area. However, their money market break through is quite successful. If you want to open an account with Bay Financial Bank then you can download the application form.

Ever Bank is offering a 5.01% APY money market account with a minimum deposit of only $1500 USD, which is quite a reasonable amount when compared to other similar banks. For instance, the Bay financial Saving Banks is offering a similar yield for 900K and Zions Bank Requires a deposit of 50,000 USD for an APY of 5.14%. Therefore, it pays the highest rate with the minimum deposit. However, this should be kept in mind that the offer is an introductory offer and the ongoing yield would be 4.26%. So, if you are looking for a long term investing in their money market accounts, you might want to consider that.

In terms of credibility, this bank is highly credible. The bank is FDIC insured, which means that consumers are insured up to 100,100 USD for their deposits. According to the IDC Financial Publishing, the bank is ranked amongst the “superior” corporations. Their Web Safety Guarantee ensures that any loss of money on company’s part due to misplacement or mistake is compensated to the costumer. Hence, it is guaranteed that you are investing you money in safe hands.

One of the most attractive features about their money market account is the free check writing. Within the legal limitations, you are entitled to make six transfers per month. But that is not all. The facility to transfer payments to their checking account is very convenient since from that account you can make about 200 transactions without being charged a single penny. Moreover, there is no maintenance charge for the account, if the minimum balance is maintained. Furthermore, they have no explicit rule about money transfer from one bank to another. You can transfer money from Ever Bank to any other bank of your choice. If you are interested in opening a money market deposit account, you can apply here.

UFB Direct is offering the best savings account right now at 5.31% APY. The minimum deposit required is $1 and you must keep your account active for at least 6 months. UFB Direct Banking Center is an online only bank so the only way to apply is by either filling out an application online, mail or speak to a customer service representative and apply over the telephone. To apply by mail, you will need to download their application from the UFB Direct website, fill it out and mail it to the address on the bottom of the application. Then you will have to transfer the money by either ACH, paper deposit or have your bank wire it over.

UFB Direct Banking Center is FDIC insured up to $100k and has won 9 consecutive top tier award at Bankrate.com. Their headquarter is located in the city of Irvine, California. For more information, please visit their homepage at http://www.ufbdirect.com.

***Update

Editors at BankDeals warned readers that UFB Direct Banking Center is FDIC insured through either Countrywide or Huntington National Bank. This can create a lot of problems for customers with savings account in both Countrywide and Huntington National Bank because you can easily go over the FDIC limit of $100k. Here is the original post.

# Explain Money Market Accounts

Money market account is a generic term to describe a market where banks and credit unions borrow, lend and trade certificates of deposit, money, and other financial instruments. Also known as MMA, it is similar to a savings account but has a far better rate of interest, a higher requirement of minimum deposit amount ($1000-$2000), and limits the number of withdrawals per month (3-6). These features make it less desirable for people to take out money.

Money market accounts from the banks and credit unions are insured by the Federal Deposit Insurance Corporation (FDIC), for up to $100,000. FDIC is a United States government corporation that guarantees insurance on deposits held by commercial banks. This came into existence because of the failure of several banks to fulfill their obligations. Since the inception, there has not been a single instance of a person having lost money in either a bank or credit union insured by the FDIC. The National Credit Union Administration (NCUA), which is a federal agency, insures the money with credit unions. The FDIC secured money market account is a secure way of savings for an investor.
# Multiplying Money!

Money multiplies with a money market savings account as it earns you a high rate of interest. It would help to understand why banks pay this high interest and what do the banks gain from it?

You open a money market account in a bank and deposit money.
The bank pays you interest on the money you have deposited in their bank.
The bank lends your money in the form of loans to people who need them and charges them interest on the money lent. Only thing is, the interest the bank charges those people is higher than the interest it pays you.

The difference in the interest rate it charges them and the interest it pays you is the income earned by the bank and that�s how banks survive.
# Interest Calculation

Interest on the money deposited is calculated as compound interest. Compound interest is where you earn interest even on the amount paid to you as interest by the bank. It is calculated on a daily basis but paid monthly. The money market rates vary from bank to bank, with some paying even higher rates. The interest rates are not fixed and they depend on the amount of money you have in the bank. The more money you deposit, the higher the money market rate. Investigate the market to find banks that provide the best money market rates along with other features.
# Withdrawal Limits

Although you are allowed to withdraw money from your money market account just as you would with a regular savings account, but there is a restriction on the number of withdrawals per month. If the number of withdrawals is greater than the bank�s limit, then you would be charged a fee of around $5 to $10. There is also a certain amount of money that needs to be maintained in the bank, failing which you will be charged a fee of around $5.

Each bank has its own set of requirements in place, and this is precisely the reason you should look at various banks and compare the requirements, before opening an account.

What are the various fees that need to be paid?
What are the service charges?
What is the amount of interest paid on your money?
What is the minimum balance requirement?

Make a list of all the questions and get answers to those.
# Operation of a Money Market Account

On opening a money market account, you will be given a small register, where you are expected to maintain your transaction history. Initially, you may write the original amount deposited and then keep entering all the subsequent deposits (credits) and withdrawals (debits), to enable you to manage and analyze your account at any point of time.

You will receive a statement of account by e-mail or to your PO Box, per your preference. This statement will provide a record of all debit and credit transactions and the amount of money left in your account (balance).

To safeguard yourself, it is always a good practice to countercheck the withdrawals and deposits in the bank statement with the register of activities that you maintain. This comparison helps in reconciling your accounts.

Having explained all that, what is remaining is for you to open a money market account and make regular deposits and watch your money multiply faster because of the higher money market rates of interest.