Earn up to 5.00% APY following the Fed rate cut

With interest rates starting to fall following the Federal Reserve’s recent interest rate cuts, it’s more important than ever to make sure you’re getting a competitive rate on your savings. One option you may want to consider is a money market account (MMA).

These accounts are similar to savings accounts — they offer interest on your balance, but may also include a debit card and/or the ability to write checks.

Are you wondering where to find the highest money market account rates today? Here’s what you need to know.

From a historical perspective, money market interest rates have been very high. The national average interest rate for money market accounts is just 0.64%, according to the Federal Deposit Insurance Corporation (FDIC), but the highest money market account rates often pay upwards of 4% APY or more — similar to the rates offered by banks. High-yield savings accounts.

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

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

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

Deposit account rates – including money market rates – are linked to Federal funds rate. This is the range of interest rates set by the Federal Reserve and what banks charge each other for overnight loans. When the Federal Reserve increases the federal funds rate, interest rates on deposit accounts usually increase. Conversely, when the Fed lowers interest rates, deposit rates fall.

Since July 2023, the Fed has maintained a target range of 5.25% to 5.50%. However, as inflation slowed and the economy improved, the Fed cut the federal funds rate by 50 basis points in September, and another 25 basis points in November. In December, the Fed cut its final interest rate for the year (25 basis points). The federal funds rate is now 4.25%-4.50%.

As a result, financial market prices began to fall. Further interest rate cuts are expected in 2025, meaning now may be the last chance for savers to take advantage of today’s higher interest rates.

Read more: Can you lose money in a money market account?

Given that interest rates on money market accounts remain high, these accounts are an attractive option for savers. However, determining whether this is a good time to put money into a money market account also depends on your financial goals and broader economic conditions. Here are some key factors to consider:

• Liquidity needs: Money market accounts provide easy access to your funds since they often come with check-writing capabilities or debit card access (although there may be a cap on monthly withdrawals). If you need to keep your money on hand while still earning a good return, a money market account may be ideal.

• Savings goals: If you have short-term savings goals or want to build an emergency fund, a money market account can provide a safer place for your money, with better returns than most traditional savings accounts.

• Risk tolerance: For conservative savers who prefer to avoid the ups and downs of the stock market, money market accounts are attractive because they are backed by FDIC insurance and cannot lose principal. However, if you are saving for a long-term goal such as retirement, riskier investments are necessary to generate higher returns that will get you to your savings goal.

Since interest rates are still high, now may be a good time to consider a money market account, especially if you’re looking for a balance of safety, liquidity, and better returns than traditional savings accounts. Comparing prices from different organizations will help you find the best options available.