Find out which banks offer best MMA rates right now The Federal Reserve cut the federal funds rate three times in 2024 and three times in 2025. As a result, interest rates on deposits, including money market account rates, have been falling.

It’s more important than ever to compare MMA rates and make sure you’re getting the most out of your balance.

While rates on money market accounts are high by historical standards, the national average rate on MMAs is just 0.56%, according to the FDIC. The good news: The best high-yield money market accounts offer more than 4% APY, more than six times the national average.

This is why it is important to shop before opening a money market account. Interest rates vary widely, but there are several banks (in particular, online banks) and credit cooperatives with very competitive offers.

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

In addition, the table below includes some of the best savings account and money market rates available today from our verified members.

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

That said, online banks aren’t the only place you can find savings accounts with 3% to 4% APY rates. Credit cooperatives are not-for-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 an upcoming expense. They generally offer higher interest rates than regular savings accounts and provide easier access to your money compared to other options such as certificates of deposit (CDs).

Money market accounts are also considered low risk and are insured by the FDIC up to the standard $250,000 per depositor per institution. This makes them safer than money market fundswhich may be subject to market risk.

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

And while you can generally access your funds as needed, MMAs can limit the number of transactions you can make each month. If you need frequent access to your money, this might 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 locking up your money in a CD.

• You can keep the minimum balance to avoid fees.

• You want to keep funds readily accessible for emergencies or short-term expenses.

Currently, the average money market account rate is 0.56%. However, several high yielding accounts pay upwards of 4% or more. If you are considering opening a money market account, be sure to shop around and compare prices.

There is no account or investment that guarantees a 12% return. However, if your goal is to get strong returns on your money and grow your wealth significantly, the best strategy to do so is to invest in market stocks like stocks, mutual funds, exchange-traded funds. The stock market returns around 10% annually, on average.

If you’re not sure where to start, it can be helpful to talk to a financial advisor about your financial goals and priorities. Alternatively, you can sign up with a robo-advisor, which is an automated and cost-effective option for managing your portfolio.

Read more: Robo-advisor: how to start investing right away