If you want to increase income from your savings, a money market account (MMA) can provide competitive returns so your balance can grow faster. Plus, you can easily access your money, as many money market accounts come with a debit card and/or paper checks.
However, not all banks offer high rates. That’s why it’s important to shop around and find the most competitive money market rates available. Read on to learn more about where you can find the best MMA rates right now.
From a historical perspective, interest rates on money market accounts have been quite high. According to the FDIC, the national average interest rate for money market accounts is just 0.60%, but the highest interest rates on money market accounts often pay more than 4% APY or even more – similar to the rates offered on high-yield savings accounts.
Here’s a look at some of the best MMA rates available today:
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 currently available from our verified partners.
After several years of near-zero interest rates, the Federal Reserve began raising the federal funds rate in 2022 to combat rapidly rising inflation. As a result, money market interest rates skyrocketed to a fifteen-year high.
However, as inflation cooled and the economy improved, the Fed cut its target rate by 50 basis points in September. The country then cut interest rates by another 25 basis points in November.
Although the federal funds rate does not directly impact deposit rates, they are correlated. So if the Fed lowers rates, money market rates ultimately fall as well. This means that this is probably the last chance to benefit from the historically high money market interest rates.
Read more: Are money market accounts safe?
The requirements for opening a money market account vary by financial institution. However, if you’re ready to open an account, you can follow these general steps:
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Research and compare accounts: One of the most important factors to consider when looking for a money market account is the interest rate. Look for competitive interest rates as this will directly impact your earnings. However, it’s also important to compare monthly maintenance fees, withdrawal limits and minimum balance requirements as these can also impact your returns.
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Choose a financial institution: You need to decide whether you prefer a traditional bank, a credit union, or an online bank. Keep in mind that online banks typically offer the highest interest rates, but credit unions may offer more personalized service. You should also verify that the institution is insured by the FDIC (Federal Deposit Insurance Corporation) for banks or NCUA (National Credit Union Administration) for credit unions to ensure that your money is protected in the rare event that the institution fails.
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Gather the required documentation: You will need government-issued identification such as a driver’s license, passport or social security card. You should also be prepared to provide some personal information, including your address, telephone number and date of birth. Some banks may require proof of address in the form of a utility bill, rental agreement or other document.
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Complete the application: Many financial institutions allow you to do this online, but you may prefer to visit a branch (if one exists) for in-person assistance.
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Finance the account: Many money market accounts have minimum deposit requirements that you must meet. Depending on the bank’s policy, you can electronically transfer money from another bank account, mail a check, or deposit cash directly at a branch.
Read more: Money Market Account vs. Money Market Fund: What’s the Difference?
