December 17, 2024 (earn up to 5.00% APY)

Money market accounts (MMAs) can be a great place to store your money if you’re looking for a relatively high interest rate as well Liquidity And flexibility.

Unlike traditional savings accounts, MMA accounts typically offer better returns, and may also offer 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 that you can still access when needed for certain purchases or bills.

The national average interest rate for money market accounts is just 0.60%, according to the Federal Deposit Insurance Corporation (FDIC). However, the best money market account rates often pay around 4.5% to 5% per year – similar to the rates shown on High-yield savings accounts.

Here’s a look at some of the best money market account rates today:

Are you interested in getting the best possible interest rate on your savings balance? Here’s a look at some of the best savings and money market account rates available today from our approved partners.

Money market account rates have fluctuated significantly in recent years, largely due to changes in the Federal Reserve’s target interest rate.

Following the 2008 financial crisis, for example, interest rates remained too low to stimulate the economy. The Fed cut Federal funds rate to nearly zero, resulting in very low MMA rates. During this time, money market account rates were typically around 0.10% to 0.50%, with many accounts offering rates at the lower end of this range.

Eventually, the Fed began gradually raising interest 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 severe recession, and the Federal Reserve again cut its benchmark interest rate to near zero to combat the economic fallout. This led to a sharp decline in MMA rates.

But starting in 2022, the Fed has embarked on a series of aggressive interest rate increases to combat inflation. This has led to historically high deposit interest rates across the board. By late 2023, money market account rates had risen dramatically, with many accounts offering interest of 4.00% or higher.

As of 2024, MMA prices remain high by historical standards, although they began a downward trajectory following the Fed’s recent interest rate cuts in September and November. Today, online banks and credit unions tend to 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, can affect the overall value you get from the account.

For example, it is common for money market accounts to require a large amount Minimum balance In order to get the highest advertised price — up to $5,000 or more in some cases. Other accounts may charge fees Monthly maintenance fees That could eat into your interest earnings.

However, there are many MMAs available that offer competitive rates without any balance requirements, fees or other restrictions. That’s why it’s important to research and compare calculations before making a decision.

Additionally, make sure that the account you choose is previously secured Federal Deposit Insurance Corporation (FDIC) or 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 a financial institution fails.

Read more: Money Market Account vs. High-Yield Savings Account: Which is Best for You?