Money market account rates today, December 13, 2024 (up to 5.00% APY return)

Between March 2022 and July 2023, the Fed raised its benchmark interest rate 11 times. As a result, money market account (MMA) interest rates rose sharply.

However, the Fed cut the federal funds rate by 50 basis points in September and another 25 basis points in November. So, deposit rates—including interest rates on money market accounts—began to fall. It’s more important than ever to compare MMA quotes and make sure you’re making as much profit as possible from your bankroll.

Although money market account rates are high by historical standards, the national average rate for MMAs is just 0.60%, according to the Federal Deposit Insurance Corporation (FDIC). The good news: The best high-yield money market accounts offer up to 5% annual return — 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 many banks (in particular, Online banks) and credit unions with very competitive offers.

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.

Online banks operate exclusively over the web. This significantly reduces their overhead costs, so they are able to pass these savings on to clients in the form of high deposit interest rates and low fees. If you’re looking for the best money market account rates, Online banks It’s a great place to start.

However, online banks aren’t the only place you can find savings accounts with interest rates ranging from 4% to 5% APY. Credit unions They are non-profit financial cooperatives and are also known for offering competitive rates and lower fees. Many credit unions have certain requirements that must be met to become a member, although some allow almost anyone to join.

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 setting aside money for upcoming expenses. They generally offer higher interest rates than regular savings accounts, and provide easier access to your money than some other options such as certificates of deposit (CDs).

Money market accounts are also considered low-risk, and are FDIC insured up to $250,000 per depositor and per institution. This makes it safer than Money market fundsWhich may be subject to market risks.

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

Although you can generally access your funds as needed, MMAs may limit the number of transactions you can make each month. If you need frequent access to your funds, 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 saving your money in a CD.

• You can maintain a minimum balance to avoid fees.

• You want to keep money easily accessible for emergencies or short-term expenses.