The Indy Mac Federal Bank offers a fixed electronic money market rate of 2.25% APY. No check writing privileges are offered in this MMA, although the fixed APY does give it an edge over competitors when it comes to reeling in smaller depositors.

The minimum deposit and daily balance required to open and maintain this account is $1000. This is a fairly small amount compared to other banks who may ask for $5000 for the same yield.

Again, the downside to this money market account is that it doesn’t allow for check writing and VISA Check Card transactions. It’s a pity because these two seem to be the trends in today’s market. Like any other MMA, it is also regulated by FDIC guidelines which limit the depositor to 6 withdrawals in a month.

The website also states that “ATM access is available”, although the fine print reads that ATM owners may charge fees. Other banks with higher APYs offer free and unlimited ATM transactions as long the ATMs belong to the bank.

The penalty fee for failing to maintain the daily balance is also pretty high. You will be charged $7 every month whenever you fail to meet the required $1000. Also, your funds won’t gain any APY for every day that you fail to maintain that minimum maintaining balance.

Take note that these rates only apply to electronic money market rates. Branch money market rates actually have lower APYs, ranging from 0.75% to 1.75% APY.

This electronic money market is also available as a retirement account, but the yields are significantly lower.

Application online is available. All you need are the standard identification and residency proofs. Make sure that you have scanned image files of your driver’s license and utility bills ready.

Indy Mac also has a 24-hour phone banking hotline (1.800.750.8521). You can contact their phone bankers if you have inquiries about opening an account.

Indy Mac Federal Bank is an insured member of the FDIC. They have branches at Pasadena and Irvine, California.