Are you seeking a blend of security and a chance to earn interest on your savings, all while enjoying the features of a checking account? Then a money market account (MMA) could be an excellent fit for your financial needs.
Money market accounts often come equipped with debit card access and check-writing capabilities, providing flexibility for fund withdrawals. Furthermore, these accounts generate interest on your balance, with some of the top money market accounts offering rates exceeding 4% APY.
As of today, the national average interest rate for money market accounts sits at just 0.59%, according to the FDIC. However, many financial institutions today present MMAs that outperform this average, with yields of 4% APY or higher, enhancing your savings growth considerably over time.
Below, we’ve compiled a list highlighting some of the leading federally insured money market accounts currently available.
Please note that interest rates, fees, and account requirements are accurate as of the publication date. For the latest information, directly confirm with the respective financial institutions.
If you’re considering opening a money market account, it’s crucial to select one that aligns well with your specific needs. Therefore, it’s essential to evaluate factors beyond just the interest rates involved.
Our expert team has analyzed various money market accounts from federally insured banks and credit unions, identifying the top 10 choices based on key criteria such as APY, minimum balance requirements, fees, and more. (See our complete methodology here.)
Featured Money Market Accounts:
1. EverBank Performance Money Market Account
- Minimum opening deposit: $0
- Monthly fees: $0
EverBank offers a standout Performance Money Market Account with a remarkable 4.00% APY — more than six times the national average for money market accounts. The interest compounds daily. Account holders also receive a debit card and checks, plus reimbursement for ATM fees.
Read our detailed review of EverBank
2. Sallie Mae Online Money Market Account
- Minimum opening deposit: $0
- Monthly fees: $0
Frequently recognized for its student loan services, Sallie Mae also provides an attractive online money market account offering 3.85% APY on all balances, with no minimum balance or monthly fee. Interest compounds daily and is credited monthly, plus the account allows for free checks and transfers.
Read our detailed review of Sallie Mae Bank
3. Ally Bank Money Market Account
- Minimum opening deposit: $0
- Monthly fees: $0
Emphasizing a no-fee structure, Ally’s money market account offers a competitive 3.5% APY without any minimum balance requirement or monthly fees. Interest compounds daily, and customers can write checks or access funds through over 43,000 ATMs in the Allpoint network, though the account must be funded within 30 days of its inception.
Read our detailed review of Ally Bank
4. Discover Bank Money Market Account
- Minimum opening deposit: $0
- Monthly fees: $0
Discover Bank’s money market account features an APY of 3.4% for balances below $100,000 and 3.45% for balances of $100,000 or more. With no minimum opening deposit or monthly fees, accessing funds via checks, debit cards, and ATMs is straightforward.
Read our detailed review of Discover Bank
5. VIO Bank Cornerstone Money Market Savings Account
- Minimum opening deposit: $100
- Monthly fees: $5 (can be waived with e-statements)
This account offers a competitive 4.31% APY, requiring a minimum opening deposit of $100 and a monthly fee of $5, which can be avoided by choosing e-statements. Daily compounding interest is applied, but note that checks and debit cards are not available with this account.
Read our detailed review of VIO Bank
6. Zynlo Money Market Account
- Minimum opening deposit: $10
- Monthly fees: $0
Zynlo boasts the highest APY on this list at 4.4% with daily compounding for balances under $250,000. There are no monthly fees, but a minimum opening deposit of $10 is necessary to maintain an account balance that earns interest.
7. Synchrony Bank Money Market Account
- Minimum opening deposit: $0
- Monthly fees: $0
While Synchrony’s money market account offers a lower interest rate of 2% APY, it stands out with its zero-fee structure for those reluctant to commit to a large opening deposit. Offerings include check-writing upon request and optional ATM card access.
Read our detailed review of Synchrony Bank
8. UFB Direct Portfolio Money Market Account
- Minimum opening deposit: $0
- Monthly fees: $10 (can be waived with $5,000 balance)
UFB Direct offers a competitive 3.90% APY without a minimum deposit, though a $10 monthly fee applies unless a minimum balance of $5,000 is maintained. This account permits check-writing and debit card access.
Read our detailed review of UFB Direct
9. First Foundation Bank Online Money Market Account
- Minimum opening deposit: $1,000
- Monthly fees: $0
With an attractive 4.25% APY, First Foundation Bank necessitates a $1,000 minimum opening deposit, making it less accessible for beginner savers. This account does not collect monthly fees and allows for debit card or check requests.
Read our detailed review of First Foundation Bank
10. Prime Alliance Bank Personal Money Market Account
- Minimum opening deposit: $0
- Monthly fees: $0
This account offers an attractive 4.05% APY with no minimum opening deposit or monthly fees, although it lacks debit card and check-writing capabilities. Unlimited deposits and up to six monthly transfers are allowed, with interest compounding monthly.
Understanding Money Market Accounts
Money market accounts are designed to help you accomplish your short-term savings objectives more quickly by providing greater returns than ordinary savings or checking accounts. They offer easy access, bundled with features like check-writing capabilities and debit cards, making them versatile alternatives for your finances.
What exactly is a money market account, and how does it work? (Learn more)
An MMA represents a type of deposit account that generally pays a higher yield compared to traditional savings accounts, and may even feature debit cards and check-writing privileges. However, much like savings accounts, MMAs may have restrictions on withdrawals.
Annual Percentage Yields (APYs) on money market accounts typically compound daily, with most credited to your account balance monthly. Compounding interest increases your yield since the interest accumulates not only on the principal but also on the earned interest.
The current national average savings account rate is merely 0.40%, while for MMAs, it stands at 0.59%. Yet, numerous money market accounts can offer considerably higher rates, sometimes exceeding 4% APY.
Choosing the right money market account with a competitive rate is crucial for accelerating your savings growth.
To illustrate, let’s consider a scenario where you deposit $10,000 into an account with one of the highest money market rates in contrast to a traditional savings account (assuming daily compounding and monthly crediting).
Initial balance requirements can differ. Certain accounts may necessitate a specific initial deposit or balance to waive a monthly fee or earn interest.
Federally insured, money market accounts are covered by the FDIC or the NCUA, providing deposit protection of up to $250,000 per institution, per depositor, and per ownership category. This coverage typically satisfies most individuals, though those with larger amounts may need to distribute funds across multiple institutions for optimal safety.
Could you sustain a loss in a money market account? (Learn more)
Generally, these accounts are a secure way to store your funds, but certain situations—such as fees and inflation—can potentially diminish your account balance.
MMAs and high-yield savings accounts (HYSAs) provide effective avenues for growing your savings, boasting security through FDIC or NCUA backing, while offering higher APYs compared to traditional savings options. However, they do have distinct differences.
What are the differences between MMAs and HYSAs? (Learn more)
Unlike CDs, which generally offer higher APYs by requiring you to lock your money for specific periods, MMAs provide more flexibility in accessing your funds.
What about MMAs and CDs? (Learn more)
Money market funds and money market accounts often confuse savers, yet they are distinctly different. Money market funds represent an investment vehicle pooling resources to engage in various securities, while money market accounts are deposit accounts held by banks and credit unions that typically yield better interest than traditional accounts.
What’s the difference between MMAs and money market funds? (Learn more)
The procedure to open a money market account is usually quite simple. After comparing various financial institutions and their account options, gather the necessary documentation, which may include your Social Security number (or TIN), a government-issued ID, and proof of residence. You can proceed with the application process either in person or increasingly, through online platforms.
How do you open a money market account? (Learn more)
Our evaluation process encompasses over 100 data points across nearly 20 federally insured money market accounts, enabling the compilation of our top 10 list.
Various factors were analyzed, including APY, minimum opening deposit amounts, balance requirements, monthly fees, interest compounding frequencies, and additional details.
Each account could potentially earn a maximum of 30 points based on these metrics. Here’s a further breakdown of the assessment criteria used:
- Monthly fees: Many MMAs levy monthly maintenance fees. Accounts devoid of such fees were rated higher.
- Minimum opening deposit: Accounts with lower or no deposits required for account setup received better ratings.
- Annual percentage yield (APY): Higher APYs secured more points compared to their lower counterparts.
- Minimum balance to earn interest: Accounts that enforce lower minimums for earning interest were favored.
- Access to funds: Flexibility to access funds through check writing, debit, or ATM services earned additional points.
- Withdrawals per month or statement cycle: Accounts offering fewer withdrawal limits received higher ratings.
- Compounding frequency: Accounts compounding interest more frequently obtained higher scores.
- Overdraft fees: Money market accounts that don’t charge fees for overdrafts were rated more favorably.
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