Money market accounts account in 2016?

[Nutria]

Hi,

Capital One 360 pays 1% APY on MMA balances over $10K, but only 0.60% on lower balances. However, their bog-standard savings account pays 0.75%, and more importantly, places like Synchrony and Ally pay 1% on their own bog-standard savings accounts.

So... what real purpose to they serve at this point?

[Jluke]

safe place for cash. better than 0.1 or 0.2% but won't keep up with inflation.

my EF is in 0.75%.

[Nutria]

safe place for cash.

It's no safer than an FDIC-insured savings account which pays a higher rate (and is possibly at the same bank).

[Jluke]

agreed, I listed the rates at my CU, so 0.75 is "better".

if you're doing better in bank savings, great.

[rennigade]

Barclays online savings account is paying 1%

[Nutria]

Barclays online savings account is paying 1%

That only reinforces my point.

[amarowsky]

I use captial one. 1% has been a breath of fresh air compared to my credit unions "high yield" @ 0.25%.

I have like 20k ish in there as a fund that is sitting around to hopefully be used as part of a downpayment towards a new home in the next 5 years.