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Money Market Account Recommendation
Old 07-08-2017, 06:58 AM   #1
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Money Market Account Recommendation

We currently maintain a minimum $25k in a low yielding money market at a local bank in order to avoid fees on our checking. I am thinking we can just switch to free checking, as it would provide enough features.

I am looking for some input on a new bank for a high yield money market. It has to have check writing ability so I can quickly pay for a large purchase without having to wait days for money to transfer. Currently we have a High Yield Savings at Synchrony paying 1.15%. But it has no check writing, and transfers to external banks are SLOW.

Would like to find something close to that 1.15% point. I have looked at depositaccounts.com, and there are a couple options on there. Just worried about some of them with low ratings, or it just being a teaser rate.

Any personal experiences with a high yielding money market that has a consistent track record, and check writing abilities?
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Old 07-08-2017, 07:23 AM   #2
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Why not use Vanguard's check writing service and their money market account (VMMXX) currently paying 1.07% interest?
It has a $250/check minimum but that's not much of a restriction:
https://personal.vanguard.com/us/wha...s/checkwriting
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Old 07-08-2017, 07:26 AM   #3
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I don't know of any money market funds that pay much. Have you considered an online bank?

I'm a fan of Ally Bank. We have both checking and savings accounts there. The saving account pays 1.15%. It's easy to transfer money to the checking account (which also pays some interest). Also, you can use any ATM free; Ally refunds transaction fees.

https://www.ally.com/bank/view-rates/
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Old 07-08-2017, 07:34 AM   #4
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Quote:
Originally Posted by racy View Post
I don't know of any money market funds that pay much. Have you considered an online bank?

I'm a fan of Ally Bank. We have both checking and savings accounts there. The saving account pays 1.15%. It's easy to transfer money to the checking account (which also pays some interest). Also, you can use any ATM free; Ally refunds transaction fees.

https://www.ally.com/bank/view-rates/
Maybe I will look into transferring my my Synchrony HYS to Ally and opening a money market there too since it looks like I could write checks. It doesn't look like Synchrony offers check writing on their money market which is my problem. Any idea how fast internal transfers are at Ally between MM and HYS?
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Old 07-08-2017, 07:59 AM   #5
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Quote:
Originally Posted by fosterscik View Post
Why not use Vanguard's check writing service and their money market account (VMMXX) currently paying 1.07% interest?
It has a $250/check minimum but that's not much of a restriction:
https://personal.vanguard.com/us/wha...s/checkwriting
That may also be an option since I already have an account at Vanguard. Is that 1.07% after the .16% expense ratio?
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Old 07-08-2017, 08:04 AM   #6
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Yes that's after all expenses and charges - its actually gone up to 1.08%, just checked.
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Old 07-08-2017, 08:12 AM   #7
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....................

I am looking for some input on a new bank for a high yield money market. It has to have check writing ability so I can quickly pay for a large purchase without having to wait days for money to transfer. Currently we have a High Yield Savings at Synchrony paying 1.15%. But it has no check writing, and transfers to external banks are SLOW.

.................................................. .......
Synchrony has a money market account that pays somewhat less but has checks. You can keep minimal amount there until you need it and then transfer from HYS which is instantaneous.

Similar to Ally........Ally gives free replacement checks. Synchrony only gives the 1st batch free but it should last a while if you don't use many.
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Old 07-08-2017, 08:16 AM   #8
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I use Discover online savings account and their checking account. Savings currently paying 1.10%. I can log in and transfer money from savings to checking and it is effective immediately. So I keep very little in the checking account until needed. No restriction on minimum check amount. Checks are free and you get a dime for each check written.

Don't confuse this with a money market account, where you write checks directly off the account, it pays a lower interest rate.

In May I closed out my high yield savings at Synchrony, they were way slow in raising the interest rate and moved money to Purepoint online savings.
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Old 07-08-2017, 08:41 AM   #9
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Synchrony has a money market account that pays somewhat less but has checks. You can keep minimal amount there until you need it and then transfer from HYS which is instantaneous.

Similar to Ally........Ally gives free replacement checks. Synchrony only gives the 1st batch free but it should last a while if you don't use many.
Thanks. Somehow I missed that Synchrony had checks available. I would assume that the internal transfers would occur quickly, right?
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Old 07-08-2017, 09:13 AM   #10
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The more I am thinking about what would work in my situation, I think I might go with a Ally HYS and MM. I like the free check and ATM reimbursement. I chatted with a rep, and she said internal transfers are instant, and it is only a soft credit pull to open an account.
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Money Market Account Recommendation
Old 07-08-2017, 03:34 PM   #11
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Money Market Account Recommendation

Quote:
Originally Posted by Hopeful View Post
The more I am thinking about what would work in my situation, I think I might go with a Ally HYS and MM. I like the free check and ATM reimbursement. I chatted with a rep, and she said internal transfers are instant, and it is only a soft credit pull to open an account.


Sounds good but be careful about the term money market fund. Many of these internet banks have both money market accounts AND high yield savings but HYS pays 1.15 vs .85 for the MM at Ally. I recently opened HYS with them and now your post has me thinking a checking account there might be handy.

Now I wonder why anyone would prefer the MM account?
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Old 07-08-2017, 05:10 PM   #12
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....................but HYS pays 1.15 vs .85 for the MM at Ally. I recently opened HYS with them and now your post has me thinking a checking account there might be handy.

Now I wonder why anyone would prefer the MM account?
Tradeoff between higher yld on money mkt (0.85%) vs checking (0.60%)
and more flexibility w/checking (unlimited checks) vs m.mkt (6 withdrawals/mo). You normally would keep bulk in HYS and move to
checking/m.mkt as needed so actual difference is probably small.
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Old 07-08-2017, 07:55 PM   #13
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... Many of these internet banks have both money market accounts AND high yield savings but HYS pays 1.15 vs .85 for the MM at Ally. ... .Now I wonder why anyone would prefer the MM account?
+1 me, too
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Old 07-08-2017, 10:31 PM   #14
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Tradeoff between higher yld on money mkt (0.85%) vs checking (0.60%)
and more flexibility w/checking (unlimited checks) vs m.mkt (6 withdrawals/mo). You normally would keep bulk in HYS and move to
checking/m.mkt as needed so actual difference is probably small.


I still don't see any benefit of MM vs HYS.
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Old 07-08-2017, 10:47 PM   #15
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Sallie Mae offers a MM account, 1.15% with check writing. Max of six withdrawls/checks per month as per Federal regs. If over six, you get hit with a fee of $10.
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Old 07-08-2017, 11:48 PM   #16
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I still don't see any benefit of MM vs HYS.
sorry for the confusion. OP was written a bit ambigously (to me) so I interpreted the question as being between m.mkt and checking in combination with HYS.

The only benefit is if you need checkwriting but that is best done w/combination
of HYS and m.mkt.
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Old 07-09-2017, 04:13 AM   #17
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http://www.doctorofcredit. has a nice list of such accounts....very helpful.
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Old 07-09-2017, 06:54 AM   #18
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Sorry for confusion. What I was originally looking for was a MM that paid similar to a HYS for the check writing aspect of the MM. I found some online such as Sallie Mae (as Boss2014 pointed out), but was looking for feedback on those.

I think the better option was to do as others have indicated and have a HYS with a linked MM. I think the Ally bank option is going to work well, plus I will be easily able to take advantage of their no penalty CDs.

Thanks for all the responses.
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