Throughout 2024, the Federal Reserve reduced its target rate three times, sparking a decline in various deposit rates, including those for money market accounts (MMAs). This shift makes it increasingly critical for individuals to shop around and compare MMA rates to maximize returns on their savings.
According to the FDIC, the average national rate for money market accounts currently sits at 0.64%. However, top-tier accounts are still offering enticing rates of 4% APY or more. Since these attractive rates might not be available for long, now could be the perfect time to open a money market account and benefit from the current high yields.
Here’s a snapshot of some top MMA rates you can find today:
Check out our selection of the 10 best money market accounts you can access now >>
In the table below, you’ll find a comparison of notable savings and money market account rates from our trusted partners.
The interest you can earn from a money market account hinges on the annual percentage yield (APY). APY calculates your total earnings over a year, factoring in the base interest rate and the frequency of compounding, which in the case of MMAs, typically occurs daily.
Let’s say you deposit $1,000 at the average rate of 0.64% with daily compounding. After one year, your balance would grow to $1,006.42 — that’s your initial $1,000 plus $6.42 in interest.
On the other hand, if you opt for a high-yield MMA with a 4% APY, your balance would reach $1,040.81 in the same timeframe, resulting in $40.81 in interest earned.
The more you stash in a money market account, the higher your potential earnings. Using the same 4% APY account, a $10,000 deposit would balloon to $10,408.08 after a year, delivering $408.08 in interest.
