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Find out how much you could win with today’s type of money market account. Interest rates on deposits (including rates on money market accounts) have been falling over the past two years. That’s why it’s more important than ever to compare MMA rates and make sure you’re getting the most out of your balance.
The national average money market account rate it stands at 0.56%, according to the FDIC. That may not seem like much, but keep in mind that four years ago, it was just 0.07%. So, by historical standards, rates on money market accounts are still quite high.
Even so, some of the top accounts currently offer more than 4% APY. Since these rates may not be around for long, consider opening a money market account now to take advantage of today’s high rates.
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.
The amount of interest you can earn with a money market account depends on the annual percentage rate (APY). This is a measure of your total earnings after one year if you factor in the base interest rate and how often the interest is compounded (money market account interest is typically compounded daily).
Let’s say you put $10,000 into an MMA at the average interest rate of 0.56% with daily compounding. At the end of one year, your balance would increase to $10,056.16: your initial deposit of $10,000, plus $56.16 in interest.
Now let’s say you choose a high-yield money market account that offers 4% APY. In this case, your balance would increase to $10,408.08 over the same period, which includes $408.08 in interest.
Compared to a traditional savings account, a money market account may have more restrictions. For example, money market accounts often require a higher minimum balance to get the best interest rate and/or avoid fees. Some MMAs may also limit the number of withdrawals you can make per month (usually six).
Generally, there are no banks that offer a 7% interest rate on money market accounts or any other type of deposit account. That said, you may find local banks and credit unions with limited-time promotional rates on certain accounts, which could be as high as 7%. However, promotional rates at this tier often apply to a limited balance.
