Discover how much you might earn with the current money market account rates. Deposit interest rates—including those for money market accounts—have been on a downward trend throughout the past year. This makes it crucial to compare MMA rates to maximize your earnings on your balance.
The national average money market account rate currently sits at 0.59%, as reported by the FDIC. While this may appear minimal, it’s worth noting that three years prior, the rate was a mere 0.07%. Therefore, in historical terms, money market account rates remain relatively favorable.
Nevertheless, there are some leading accounts today offering rates exceeding 4% APY. Given that these rates may not last indefinitely, now is an excellent time to consider opening a money market account to benefit from today’s elevated rates.
Below is a summary of some of the finest MMA rates available at present:
Moreover, the table that follows highlights some of the top savings and money market account rates currently offered by our trusted partners.
Your earnings from a money market account are largely determined by the annual percentage rate (APY). This figure represents your total earnings after a year, factoring in the base interest rate and the frequency of interest compounding (interest on money market accounts typically compounds daily).
For instance, if you deposit $10,000 in an MMA at the average interest rate of 0.59% with daily compounding, your balance after one year will reach $10,059.17—your initial deposit of $10,000 plus $59.17 in interest.
On the other hand, if you opt for a high-yield money market account offering 4% APY instead, your balance would grow to $10,408.08 after the same duration, including $408.08 in interest.
In comparison to standard savings accounts, money market accounts may impose more restrictions. For instance, these accounts often require a higher minimum balance to secure the best interest rates and/or to avoid fees. Additionally, certain MMAs might limit the number of monthly withdrawals (typically to six).
Generally, no banks offer a 7% interest rate on money market accounts or any other type of deposit account. However, local banks and credit unions may run temporary promotional rates on select accounts that can reach as high as 7%. Be aware that such promotional rates typically apply only to limited balances.
Learn more: Do 7% interest savings accounts exist anymore?
