Zion Bank is offering a high interest money market account that gains up to 2.66% APY. This money market rate is accurate as of February 6, 2009. This account comes with check writing options.

The money market rates tend to change very frequently, so make sure that you visit the website before opening an account. The minimum deposit and daily balance required for this money market account is $2500.

As a depositor, you can make an unlimited number of withdrawals from your account in person, through ATM, by messenger or mail within one banking month.

Like any money market account, though, it’s synchronized with federal guidelines. Every depositor is limited to a total of six pre-authorized withdrawals, automatic transfers, electronic transfers and/or check transactions within 30 banking days. Within these six transactions, the depositor may only use his/her check writing privileges, debit, and draft rights thrice.

Depositors are also limited to make 3 money transfers over the phone within banking month. This is also included in the six monthly transactions regulated by FDIC. Any more than three phone transfers will incur a $3.00 deduction from your funds per transaction.

This money market account can hold more than $100,000, although it’s advisable for depositors to stay within FDIC insurance limits. Presently, Zion Bank insures up to $250,000 of each account’s funds with the FDIC, but this rate could drop by December 31, 2009. Always read the fine print before depositing your money.

There is no indication on the website that one depositor can only hold a single account. If you wish, you may inquire about the possibility of holding more than one money market account to ensure the safety of your funds. Make sure that you maintain your daily minimum balance of $2500 per account to dodge the monthly penalties.

It’s a non-tier account, meaning it offers a fixed APY whether you’re putting in $2500 or $100,000 worth of new money into the bank.

Like all fixed rate money market accounts, this is probably more beneficial for individuals who are willing to invest smaller amounts of money. It’s still a very competitive money market rate even for bigger bulk deposits compared to its peers.

As in most MMAs, this account has no monthly fees as long as you maintain the minimum daily balance. Zion Bank also boasts of a wide network of non-surcharge ATMs across the US. Interested depositors may apply online through their website, or through 24-hour costumer service hotline at 1-866-761-8349.

It’s an electronic money market account, so it comes to no surprise that they offer 24-hour-free online access to depositors. I think this “free access” does not include money transfers and withdrawals, though. As we’ve said earlier, these are limited by FDIC guidelines.

Zion Bank holds its main office at Salt Lake City, Utah. It has over 500 offices nationwide, and about 600 ATMs scattered all over Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah and Washington. 197 of these ATMs are located in Utah and Idaho.