In 2024, the Federal Reserve made the move to cut its target rate three times, which has led to a noticeable drop in deposit rates, including those for money market accounts (MMAs). With this shift in the rate climate, it’s crucial to shop around for the best MMA rates to maximize your earnings on deposits.
According to the FDIC, the average national rate for money market accounts is sitting at 0.64%. However, some top-tier accounts are offering a much more enticing rate of 4% APY or more. Don’t delay in considering a money market account; with rates like these, the opportunity might not last long.
Let’s dive into some of the best MMA rates you can find today.
Check out our top 10 picks for the best money market accounts available now>>
The table below highlights some of the most competitive savings and money market account rates you can get from our reliable partners.
The interest you earn from a money market account largely hinges on the annual percentage yield (APY). This figure reflects your earnings after a year, factoring in both the base interest rate and how frequently the interest is compounded — with MMAs, compounding typically happens daily.
For example, if you deposit $1,000 into an MMA with an average interest rate of 0.64%, and the interest compounds daily, your balance at the year’s end would be $1,006.42. That’s your original $1,000 plus a modest $6.42 in interest.
Now, if you opt for a high-yield money market account offering 4% APY, you’d see your balance grow to $1,040.81 over the same period, earning you $40.81 in interest.
The more you invest in a money market account, the greater your potential earnings. For instance, suppose you put $10,000 into a money market account at 4% APY. After one year, your balance would climb to $10,408.08, resulting in $408.08 in interest earnings.
