Discover how much interest you could earn with today’s money market account rates. As deposit interest rates (including those for money market accounts) have declined over the past year, it becomes increasingly critical to compare MMA rates and maximize your earnings on your savings.
According to the FDIC, the national average money market account rate is currently at 0.59%. While this may appear low, it is a substantial increase from just 0.07% three years ago, suggesting that money market account rates are still relatively favorable on a historical scale.
Currently, several leading accounts are offering rates above 4% APY. Given that these rates may not last long, it could be wise to establish a money market account now to benefit from the advantageous rates available today.
Here’s a snapshot of some of the top MMA rates you can find today:
Moreover, the following table showcases some of the best savings and money market account rates currently offered by our trusted partners.
Your earnings from a money market account depend largely on the annual percentage rate (APY). This figure reflects your total earnings over one year, taking into consideration both the base interest rate and the frequency of compounding, with money market account interest usually compounding daily.
For instance, if you deposit $10,000 in an MMA with an average interest rate of 0.59% and enjoy daily compounding, at the end of one year, your balance would reach $10,059.17 — your original $10,000 plus $59.17 in earned interest.
Now, if you decide to select a high-yield money market account offering 4% APY instead, your balance would expand to $10,408.08 over the same timeframe, which includes $408.08 in earned interest.
In comparison to traditional savings accounts, money market accounts often come with additional requirements. For example, they typically necessitate a higher minimum balance to qualify for the most advantageous interest rates and/or to avoid fees. Some MMAs might also limit your monthly withdrawals (usually capped at six).
Generally speaking, there are no banks currently providing a 7% interest rate on money market accounts or any other type of deposit account. However, local banks and credit unions might run limited-time promotions on select accounts with rates reaching as high as 7%, although these promotional rates typically apply to a specific balance.
Learn more: Do 7% interest savings accounts exist anymore?
