AIG Bank Money Market Accounts

AIG Bank, the banking arm of the insurance company AIG, is offering some of the best money market rates available. Money market accounts are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 per depositor until December 31, 2013. After that date deposit insurance will revert back to the $100,000 limit.

AIG Bank’s money market rates are tiered, which means the rate of interest the account earns is scaled according to the amount invested in the account.  The higher the balance in the money market account, the higher the rate. 

Savings accounts and jumbo CDs typically earn higher rates with larger deposits and terms than accounts with smaller deposits and shorter terms. AIG Bank’s money market accounts with balances of $2,500 to $9,999 earn a rate of 1.09 percent and a yield of 1.10 percent.

Account balances between $10,000 and $49,999 earn a rate of 1.49 percent and an annual percentage yield of 1.50 percent. Balances between $50,000 and $99,999 earn a rate of 1.54 percent and a yield of 1.55 percent. 

Money market accounts with balances between $100,000 and $249,000 earn a rate of 1.60 percent and a yield of 1.60 percent. Account balances over $250,00 earn a rate of 1.64 percent and a yield of 1.65 percent.

Deposits are insured up to $250,000 so I would keep account balances under that limit. If you have more funds to deposit a better option for you is probably the Certificate of Deposit Account Registry Service (CDARS.com) which allows you to deposit up to $50 million and still receive FDIC insurance coverage.

AIG Bank also now also offering mortgages and the bank is currently  advertising a 30 year mortgage rate at 4.625 percent.