Founded in by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Finding the best money market rates available for your savings can help you earn a lot more interest than settling for whatever your local bank pays you.
But lately, even the best rates have left savers feeling shortchanged. What's holding money market rates back? How low can they go? Before the financial crisis, savers could expect decent returns on their cash. Currently, a few banks, including American Express NYSE: AXP and Capital One NYSE: COF , offer between 0.
Unfortunately, among most big national banks, the news is far worse. Bank of America NYSE: BAC and Wells Fargo NYSE: WFC have rates of less than 0. Minneapolis-based regional powerhouse US Bancorp NYSE: USB offers similarly low money market rates.
Where'd the income go? The big problem for savers has come from the Federal Reserve , which maintains a firm grip on short-term interest rates. In order to try to help the U.
That big drop has pulled even the best money market rates down with it. Moreover, since , the slow pace of recovery has led the Fed to keep interest rates right where they are, and at least for now, there's no relief in sight for savers.
Many experts now expect the Fed to keep rates low throughout and into For banks, those low rates have been extremely lucrative. On one hand, B of A, Wells, and US Bancorp have been able to retain money market deposits at next to no interest cost, helping provide valuable cash to turn around and lend at higher rates.
Moreover, the increased mortgage refinancing activity that low rates have spurred has boosted their bottom lines as well. What you can do Unfortunately, the options savers have in the current environment are limited. Many people seeking more income have taken money out of savings and bought higher-yielding dividend stocks, but by doing so, they've gone from a risk-free federally insured guarantee of getting their principal back to a much riskier investment that can produce substantial losses.
Digging for the best money market rates among banks hasn't been nearly as lucrative as it once was. As long as the economy maintains its sluggish pace of recovery, money market accounts aren't likely to start paying you much more in interest anytime in the near future. Fool contributor Dan Caplinger owns warrants on Wells Fargo and Bank of America. You can follow him on Twitter DanCaplinger. The Motley Fool recommends American Express and Wells Fargo.
The Motley Fool owns shares of Bank of America and Wells Fargo.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Dan Caplinger has been a contract writer for the Motley Fool since As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on Fool. With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world.
I currently have over $50, in a savings account at Wells Fargo earning % interest. I'm thinking about moving it over to Ally Bank to earn %. How does that process work? Is there a fee? And how do I access the money once it's at Ally? - Nerdwallet
Skip to main content The Motley Fool Fool. Premium Advice Help Fool Answers Contact Us Login. Latest Stock Picks Stocks Premium Services.
Stock Advisor Flagship service. Rule Breakers High-growth stocks.
Wells Fargo Money Market Rates: Reviews, Latest Offers, Q&A, Customer Service Info
Income Investor Dividend stocks. Hidden Gems Small-cap stocks. Inside Value Undervalued stocks. Learn How to Invest.
Credit Cards Best Credit Cards of Best Credit Card Sign-Up Bonuses Best Balance-Transfer Credit Cards Best Travel Credit Cards Best Cash-Back Credit Cards Best No-Annual-Fee Credit Cards Best Small Business Credit Cards. Mortgages Compare Mortgage Rates Get Pre-Approved How Much House Can I Afford? Taxes How to Reduce Your Taxes Deductions Even Pros Overlook Audit-Proof Your Tax Return What Info Should I Keep?
Helping the World Invest — Better. How to Invest Learn How to Invest. Personal Finance Credit Cards Best Credit Cards of Best Credit Card Sign-Up Bonuses Best Balance-Transfer Credit Cards Best Travel Credit Cards Best Cash-Back Credit Cards Best No-Annual-Fee Credit Cards Best Small Business Credit Cards.
Apr 9, at Capital One Financial NYSE: