Below is the highest-yielding, local money market account rate available to residents of the state of Connecticut. After compiling the list of the best CD rates in Connecticut, I found one major inconsistency in the rates associated with both products.
For CD rates in Connecticut, the highest yields where generally found in local banks or community credit unions. However, with money market accounts in Connecticut, the highest rates are generally found outside of the state. Typically offered through the large national banks such as Discover Bank and/or Ally Bank.
Keep in mind MMA (money market accounts) have a variable interest rate that is typically subject to change without notice. As of today, the national average for MMA interest rates sits at roughly 1.15% APY.
Best MMA rate in Connecticut:
(clicking on the institution will bring you to their home page)
Milford Federal Credit Union: Milford, CT. With balances of $10,000 and greater you will earn 2.02% APY. For balances of $5,000 – $9,999 you will earn 1.51% APY and for balances of less than $5k you will earn a below average rate of 1.0% APY. If you are eligible to join this CU, you will also be able to take advantage of their “new money CD rate promotion” which is an 11 month CD yielding 2.50% APY. The national average for 1 year CD rates sits at roughly 1.65% APY.
As I mentioned before, many national banks are able to offer similar interest rates with more flexible terms than local institutions for this particular state. For example, Discover Bank has a money market account which is yielding 1.55% APY with NO minimum balance. Therefor you can plop $1,000 into this account and still earn a 1.55% return whereas Milford Federal Credit Union would only provide yields of 1.0% to that same balance amount.
If you live in the state of Connecticut and know of a better MMA interest rate offered through your local bank or credit union, please share by leaving a comment.