HomeBusinessMoney Market Account Rates Today, January 24, 2024 (up to 4.75% APY...

Money Market Account Rates Today, January 24, 2024 (up to 4.75% APY yield)

The Federal Reserve cut the federal funds rate three times in 2024 for a total reduction of one percentage point. As a result, deposit interest rates – including money market accounts – have fallen.

It’s more important than ever to compare MMA rates and make sure you’re earning as much as possible from your balance.

Although money market account rates are increasing according to historical norms, the national average rate for MMAs is just 0.66%, according to the FDIC. The good news: The high-quality money market accounts offer more than 5% APY—more than seven times the national average.

That’s why it’s important to shop around before opening a money market account. Interest rates vary widely, but there are several banks (particularly online banks) and credit unions with very competitive offers.

Here’s a look at some of the best MMA fare available today:

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Check out our picks for the 10 best money market accounts available today >>

Additionally, the table below contains some of the best savings and money market account rates available today from our verified partners.

Online banks work exclusively via the internet. This significantly reduces their overhead costs, so they can pass those savings on to customers in the form of high deposit rates and low fees. If you’re looking for the best money market account rates, online banks are a great place to start.

That said, online banks aren’t the only place you can find savings accounts with rates of 4% to 5% APY. Credit unions are non-profit financial cooperatives and are also known to offer competitive rates and reduced fees. Many credit unions have certain requirements that must be met to join, although there are some that allow just about anyone to join.

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Read more: Are online banks really safe?

Money market accounts can be a great option for short-term savings goals, such as building an emergency fund or putting money aside for an upcoming expense. They generally offer higher interest rates than regular savings accounts, and they provide easier access to your money compared to some other options like certificates of deposit (CDs).

Money market accounts are also considered low risk and they are FDIC insured up to the standard $250,000 per depositor, per institution. This makes them safer than money market funds, which can be subject to market risk.

However, keep in mind that many money market accounts require a minimum balance to open the account and earn the highest advertised rate. If you can’t maintain this balance, you could incur fees or miss out on the best rates.

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And while you can generally access your money as needed, MMAs may limit the number of transactions you can make each month. If you need frequent access to your money, this may be a consideration.

Read more: Is there a penalty for withdrawing from your money market account?

When a money market account makes sense:

  • You want to earn more interest than a regular savings account without locking up your money in a CD.

  • You can maintain the minimum balance to avoid fees.

  • You want to keep funds easily accessible for emergencies or short-term costs.

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