The Dime Savings Bank of New York has introduced a money market account with returns pegged to the current yield of three-month Treasury bills. Money market yields are most commonly determined by bank money managers, the Dime noted.
The account, Dimevest, pays investors 100% of the T-Bill's 91-day yield on balances of $25,000 or more, 90% on balances of $10,000 to $25,000, and $70% on balances of less than $10,000. It is insured by the Federal Deposit Insurance Corp.
The account reacts more quickly to market changes because it is tied directly to T-bill yields, said David J. Totaro, the Dime's chief marketing officer.