Comments on: Is Your Money Market Mutual Fund Yielding Zero?

By: Frank

Frank — Fri, 26 Mar 2010 17:38:02 +0000

I have an account with ing direct. My money is in a money market fund ticker symbol BDMXX but it is yeilding zero? what is the problem?

By: Pilm

Pilm — Fri, 22 Jan 2010 00:09:02 +0000

CNB’s been falling rapidly last few month, now it’s just 1.5%

By: Luigi

Luigi — Mon, 21 Dec 2009 05:36:16 +0000

CNBBankDirect is also offering a 1.70% apy with no monthly fees and $1 minimum to open, with no min bal.

By: Russ

Russ — Mon, 14 Dec 2009 16:47:56 +0000

Discoverbank is offering 1.73% APR right now for a savings account. $500 to open, no min bal, no fees.

By: V

Fri, 11 Dec 2009 19:13:57 +0000

@ Kevin

Ah, that makes it very clear! Thanks!!

By: Kevin

Kevin — Fri, 11 Dec 2009 19:02:14 +0000

If the biller’s website accepts CC/debit payments (with a 16-digit card number), then it will count for your 12 card transactions. If the biller’s website wants your routing number and account number, it will be counted as an electronic transfer. It is arbitrary what form of payment a biller will accept (of course).

By: V

Fri, 11 Dec 2009 02:15:26 +0000

@ Kevin

Thanks for the details, very helpful! I am still not sure how Verizon’s billpay is counted as a debit card transaction, while with Comcast/at&t, it is counted as an electronic transfer. Is it just arbitrary?

By: Kevin

Kevin — Thu, 10 Dec 2009 16:48:18 +0000

Check the comments sections of the other posts on this matter for more info. I pay my Verizon bill through Verizon’s online bill pay service, using the debit/credit card option, in increments of $1.01, $1.02, $1.03 … $1.12 so that it is easy to count the number transactions I made that count towards my bill. Although Verizon counts it as a debit card transaction, they do not ask for my PIN and that is good for my security concerns.

Making an electronic payment through the Sierra online bill pay service is also a requirement that has to be met at least once monthly, and does not double count toward the debit/credit purchase requirement. Another monthly requirement is an electronic transfer and if you have an online account with comcast, at&t, etc. and make a payment through their website to pull funds from your Sierra account, that is counted as an electronic transfer and does not double count as a debit/credit card transaction.

By: Nate

Nate — Thu, 10 Dec 2009 02:33:31 +0000

I just opened a rewards checking account with Endura Financial Credit Union. 4.5%, 12 debit trx, 1 direct deposit, paperless statmes. up to 25k. Way better than my previous Ally.com which was down to i think 1.59. I am waiting on my checks to set up direct deposit so I havent qualified yet…. looks good tho.

By: V

Thu, 10 Dec 2009 00:18:53 +0000

Do the 12 debit card purchase required by the Sierra checking account have to be purchases made at stores or does paying bills like comcast, at&t etc. using the debit card count?

By: Max

Max — Wed, 09 Dec 2009 17:15:38 +0000

Why are we still talking about saving money in this climate? The rates are near zero, for God’s sake … do you know how long it takes you to double your money at 0.03%? 2,300 years, that’s how long.

The name of the game right now is commodities and long-term fixed debt. If I somehow could take out a 30-year loan and purchase a buttload of gold ETF’s, oil, grain, and metal, I would in a blink.

All savers will continue to be punished.

By: Bill

Bill — Wed, 09 Dec 2009 14:40:37 +0000

The only reason I would leave some money in a money market fund, basically earning 0% is because it is my dry powder money that I can invest in a hurry if needed and also at this point in time, I’m not bullish at all. The only other option would be a short term bond fund possibly but then again I face principle risk. I have an IRA with Vanguard and would like to have my contribution sit in cash for a while until I feel the market is priced more appropiately then invest. Hell, even if the rate is around 1%, after paying taxs on the interest what was your return on cash???

By: Eric

Eric — Wed, 09 Dec 2009 05:34:23 +0000

Shucks…only got the 4.5 from Sierra for 3 months and now a rate drop. Still kicks everyone else outta the water but still…I don’t understand why anyone would leave money in a money market fund. Makes no sense.

By: Jim

Jim — Tue, 08 Dec 2009 17:46:34 +0000

Alexandria makes a good point with Alliant CU. They also have a 1.75% high-rate checking account. All you need to qualify is paperless statements and a recurring deposit (not even necessarily an employer direct deposit, it can be a recurring transfer from another bank). They have a network of free ATMs all over the country, plus the nice feature that you can deposit checks by scanning them at home.

Anyone can join Alliant. If you don’t meet any of their other qualification categories, you can join your local PTA and qualify that way. Even if you don’t have kids, joining the PTA is still a good cause, and you’ll earn the money back in interest!

By: Kevin

Kevin — Tue, 08 Dec 2009 17:41:14 +0000

Arghhh!!!

Bank of the Sierra is my rewards checking account and they didn’t notify me they dropped their rate from 4.5% to 4%.

By: Alexandria

Alexandria — Tue, 08 Dec 2009 16:28:16 +0000

For people who qualify, Alliant CU is offering 2% on savings accounts. 3% on HSAs. IT’s based in Chicago but has branches in Cali. I qualified through a professional membership, but most people I know (in Cali) have Kaiser and qualify through that as well. It’s worth a check of their membership qualifications. (No fees, $5 minimum. Their HSAs are the best ones I have seen – no fees. Most HSA Savings have big fees and piddly interest).

They also make it extremely easy to fund Living Trust accounts.

I have an Ally account, but their rates have been sliding with their new name/image. Just finished moving most my money over to Alliant.

By: Jonathan

Jonathan — Tue, 08 Dec 2009 16:26:02 +0000

Vanguard tends to forgive you going below the minimum balance, but if you do fall “significantly” below for a “long” time, they’ll close out the account. I’ve gone below for a while before.

As you heard from a rep, I really don’t think they have hard numbers, and I imagine with money market funds – as long as you have other investments there as well – they are probably even more lax than compared to say leaving $50 in a S&P 500 fund.

By: Bill

Bill — Tue, 08 Dec 2009 15:28:40 +0000

I do have a question regarding the Vanguard money funds, I know it takes $3K to open a fund but I have been unable to find out if there is a minimum balance required or any service charges associated if the balance falls below $3K. I have called and asked a Vanguard rep and he basically said that if you had say $500.00 in the acct they may contact to you and ask to close the acct? It just doesn’t sound very concrete and I have accts. with Vanguard and would like to use it as a cash holdover acct with a low balance. Would appreciate if anyone knows something more concrete on any policy Vanguard has regarding balances on thier money funds.