Money market accounts (MMAs) can be a great place to store your cash if you’re looking for a relatively high interest rate along with liquidity and flexibility. Unlike traditional savings accounts, MMAs typically offer better returns and may also provide check writing privileges and debit card access. 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.
Find out which banks have the best MMA rates today.
The national average interest rate for money market accounts is just 0.59%, according to the FDIC. However, the best interest rates for money market accounts typically pay more than 4% APY, similar to the rates offered on high-yield savings accounts.
Here’s a look at today’s highest money market account rates:
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Money market account rates have fluctuated significantly in recent years, largely due to changes in the Federal Reserve’s target interest rate, known as the federal funds rate.
In the wake of the 2008 financial crisis, for example, interest rates were kept extremely low to stimulate the economy. The Federal Reserve cut the federal funds rate to near zero, leading to very low MMA rates. During this time, money market account rates typically hovered between 0.10% and 0.50%, with many accounts offering rates at the lower end of that range.
Eventually, the Federal Reserve began raising interest rates gradually as the economy improved. This led to higher returns from savings products, including MMAs. However, in 2020, the COVID-19 pandemic caused a brief but sharp recession, and the Federal Reserve cut its benchmark rate again to near zero to combat the economic fallout. This resulted in a sharp drop in MMA rates.
But starting in 2022, the Federal Reserve embarked on a series of aggressive interest rate hikes to combat inflation. This led to historically high deposit rates across the board. By the end of 2023, money market account rates had increased substantially with many accounts offering 4.00% or more.
Throughout 2024, MMA interest rates remained high and it was possible to find accounts paying well above 5% APY.
Today, rates remain high by historical standards, although they have begun a downward trajectory following the Federal Reserve’s cuts in late 2024 and its most recent rate cut in October. Today, online banks and credit unions tend to offer the highest rates.
When comparing money market accounts, it’s important to look beyond the interest rate. Other factors, such as minimum balance requirements, fees, and withdrawal limits, can affect the total value you get from the account.
For example, it is common for money market accounts to require a high minimum balance to qualify for the highest advertised rate—up to $5,000 or more in some cases. Other accounts may charge monthly maintenance fees that can affect your interest earnings.
However, there are several MMAs available that offer competitive rates with no balance requirements, fees, or other restrictions. That’s why it’s important to compare prices and compare accounts before making a decision.
Also, 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 of up to $250,000 per institution, per depositor. Most money market accounts are federally insured, but it’s important to double-check in the rare case that the financial institution goes bankrupt.
Read more: Are money market accounts safe?
Today, money market account rates are still quite high compared to historical standards. The best accounts offer over 4% APY, with the highest rate available today at 4.26% APY.
How much $10,000 will earn in a money market account depends on the annual percentage yield (APY) the account offers, as well as how long you keep your money in the account. Let’s say you choose to deposit $10,000 in a money market account that earns 4% APY with interest compounded monthly. After one year, you would earn $407.44 in interest, for a total balance of $10,407.44.
Money market accounts are generally safe and flexible savings options, but like any other financial product, they also have some drawbacks.
For example, some MMAs require a high minimum balance to open the account or to earn the advertised APY. Failure to maintain that minimum balance may result in penalties or reduced interest rates. Additionally, money market rates are variable, meaning they can change at any time at the bank’s discretion. If interest rates drop, so will your account’s APY, which can make future earnings unpredictable compared to fixed-rate products like CDs.