By Brian O’Connell
Ask any garden variety investor whether they have money in money market mutual funds or money market bank accounts, and chances are you’d find more in the former category than in the latter.

After all, over $3 trillion is held in money market funds in the U.S., with $1 trillion held by individual investors.

But you have to wonder why an investor would opt for money market funds, if only for performance reasons. Take the Fidelity Money Market Fund, for example. The fund is currently yielding 0.82%, or the Vanguard Prime Money market Fund, which is only yielding 0.52%.

Compare those rates to money market bank account yields, which often double the rates of comparable money market mutual funds. Some money market accounts come with strings attached, like $10,000 account minimums to qualify for yields of 2% or more. But there are also many good deals on money market bank accounts that have low, or no-minimums.

And just about every region of the U.S. has them.

For example, take Bucks County, PA, which is located just north of Philadelphia. A quick glance at money market bank rate deals in the region reveal no shortage of superior deals, relative to money market funds.

Bucks County Bank in Doylestown, PA is offering a 2.20% APY for money market deposits with an account minimum of $10,000. William Penn Bank in nearby Richboro is offering a low-minimum ($1,000) money market APY of 1.160%, still significantly above the rates tied to money market mutual funds.

Head cross-country to Portland, OR, where bank money market investors at Oregonians Federal Credit Union in Beaverton can get an 1.51% APY, with only a $2,500 minimum.

On a more national scale, bigger banks are also offering good deals on money market rates. Nationwide (Stock Quote: NFS) Bank is offering 2.15% APY on its money market account, with only a $1,000 minimum. In similar fashion, Discover (Stock Quote: DFS) Bank has rolled out a 1.75% rate on its money market account, with a minimum deposit of $2,500. For deposits of $25,000 or more, the rate jumps up to 2.0%.

Most bank money market accounts are also easily linked to low-yielding brokerage accounts, so moving money between the two is not a problem.

It’s a brutal environment for money market fund investors out there and for now, bank money market accounts continue to look better and better.

Check out BankingMyWay.com for a look at some of the best money market bank rate deals out there today.

— For more ways to save, spend, invest and borrow, visit MainStreet.com.