savings

Earn more on your money market accounts

Finding high-yield money market accounts

As bank interest rates continue to fall, earning a sizable return on your savings has become a challenge. While money market accounts in general offer low yields these days, there are big differences from bank to bank. Before you put your money into one, remember these three tips.

The balance minimum trap

Many money market accounts have a minimum opening deposit and a minimum balance if you expect to avoid monthly fees. These amounts vary, meaning your first deposit might result in monthly fees of $5 to $10. If you're looking to keep your savings safe, make sure you find an account that won't make you pay for not having enough cash on hand.

Don't discount the online bank

While banking locally has its perks, some of the best rates for money market accounts can be found at online banks such as Ally Bank, NewDominion Direct and EverBank. Internet banks offered the top three consistently high yields in the second quarter of 2010.

Know your compounding

Money market accounts can compound interest on a daily, monthly or quarterly basis. As you compare options, look for a money market account that compounds daily. The more frequently your interest compounds, the faster your money will grow.

Ready to get a bigger return? Search Bankrate.com for money market accounts that can reward your savings with above-average interest rates.

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