In 2024, the Federal Reserve made three cuts to its target interest rate, which meant a decline in deposit rates—including those for money market accounts (MMAs). With these drops, it’s crucial to shop around for the best MMA rates to ensure you’re maximizing returns on your savings.
According to the FDIC, the national average rate for a money market account is currently at 0.64%. However, you can still find some top-notch accounts offering upwards of 4% APY. Since these higher rates might not last, it could be wise to open a money market account now and benefit from the advantageous rates.
Let’s explore some of the leading MMA rates available right now. For those interested, we have carefully selected and ranked the 10 best money market accounts on offer today.
Additionally, the table below showcases some of the best savings and MMA interest rates from our verified partners.
The interest you gain from an MMA hinges on the annual percentage yield (APY), which reflects your annual earnings, taking into account the base interest rate and how frequently it compounds (typically, interest in MMAs compounds daily).
To illustrate, if you deposit $1,000 into an MMA with the average rate of 0.64%, compounding daily, you’d end the year with a balance of $1,006.42. That’s your initial $1,000 plus just $6.42 in interest.
Now, consider a high-yield MMA offering 4% APY. Over the same period with daily compounding, your balance would grow to $1,040.81, earning you $40.81 in interest.
The more you deposit into a money market account, the more you’ll gain. For instance, depositing $10,000 in an account with a 4% APY would see your balance reach $10,408.08 after a year, which means you’d earn $408.08 in interest.
