Money market accounts (MMAs) can be a great place to store your money if you’re looking for a relatively high interest rate combined with liquidity and flexibility.
Unlike traditional savings accounts, MMAs typically offer better returns, and may also offer check-writing privileges and access to debit cards. This makes these accounts ideal for holding long-term savings that you want to grow over time, but can still access when needed for certain purchases or bills.
According to the FDIC, the national average interest rate for money market accounts is just 0.60%. However, the best rates on money market accounts often pay around 4.5% to 5% APY – similar to the rates offered on high-yield savings accounts.
Here’s a look at some of today’s best money market account rates:
Do you want to earn the best possible interest on your savings balance? Here’s a look at some of the best savings and money market account rates available today from our verified partners.
Interest rates on money market accounts have fluctuated significantly in recent years, largely due to changes in the Federal Reserve’s interest rate target.
For example, in the aftermath of the 2008 financial crisis, interest rates were kept extremely low to stimulate the economy. The Fed cut the federal funds rate to near zero, leading to very low MMA rates. During this time, interest rates on money market accounts were typically around 0.10% to 0.50%, with many accounts offering rates on the lower end of that range.
Eventually, the Fed began gradually raising rates as the economy improved. This led to higher returns on savings products, including MMAs. However, in 2020, the COVID-19 pandemic led to a short but sharp recession, and the Fed again cut its benchmark interest rate to near zero to combat the economic fallout. This resulted in a sharp drop in MMA rates.
But starting in 2022, the Fed began a series of aggressive rate hikes to combat inflation. This led to historically high deposit rates across the board. By the end of 2023, rates on money market accounts had increased significantly, with many accounts offering 4.00% or higher.
As of 2024, MMA rates remain high by historical standards, although they have begun a downward trajectory following the Fed’s most recent rate cuts in September and November. Today, online banks and credit unions typically offer the highest rates.
When comparing money market accounts, it’s important to look beyond just the interest rate. Other factors, such as minimum balance requirements, fees, and withdrawal limits, may affect the total value you receive from the account.
For example, it’s common for money market accounts to require a large minimum balance to earn the highest advertised rate – in some cases even $5,000 or more. Other accounts may charge monthly maintenance fees that can eat into your interest income.
However, there are several MMAs available that offer competitive rates without any balance requirements, fees or other restrictions. That’s why it’s important to shop around and compare accounts before making a decision.
Additionally, make sure the account you choose is insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA), which guarantees deposits up to $250,000 per institution, per depositor. Most money market accounts are federally insured, but it is important to double-check in the rare event that the financial institution fails.
Read more: Money Market Account vs. High-Yield Savings Account: Which Is Best for You?
