California First National Bank is offering one of the highest money market rates this month. Their standard Money Market Checking account rate remains at 2.50% APY, which is impressive considering the economic climate. This money market rate is accurate as of February 6, 2009. The bank may change this APY without notice.

Their money market account includes check writing privileges and is subject to certain FDIC regulations. You can only make six withdrawals within a month. According to the fine print, checking privileges are free, but you’re allowed only up to three check transactions in a banking cycle. These check transactions are included in your six-withdrawals-a-month limit. A $10 penalty fee will be deducted from your funds should you exceed the withdrawal limit.

To open a money market checking account with CalFirst, you need to deposit a minimum of $5000. This is probably one of the few downsides of this MMA as some banks offer minimum deposits of around $1500 to $2000 with the same yield.

Depositors who are thinking of investing more than $50000 should also think about shopping around for higher APYs. 2.50% is a competitive rate for smaller deposits, but other banks offer higher yields for $50000 and up.

Initial online application is available, although you still need to prepare proofs of your identity and residency. They will mail you a kit once your application has been approved. You will have to mail this kit back after verifying the information on the documents and signing the forms.

There seems to be very little information about the money market checking account on their website. You can call their costumer service hotline (800-735-2465) for more information.

CalFirst Bank belongs to the umbrella corporation California First National Bancorp. They have been insured by FDIC since 1977.