The Federal Reserve has cut its target rate three times in 2024. Thus, deposit rates β including money market account (MMA) rates β began to decline. It's more important than ever to compare MMA rates and make sure you get the most out of your balance.
The national average money market book rate it is 0.66% according to the FDIC.
Still, some of the best accounts currently offer up to 5% APY. Since these rates may not be around much longer, consider opening a money market account now to take advantage of today's high rates.
Here's a look at some of the best MMA rates available today:
Check out our picks for the 10 best money market accounts available today>>
Additionally, the table below includes some of the best savings and money market account rates available today from our verified partners.
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The amount of interest you can earn from a money market account depends on annual percentage rate (APY). This is a measure of your total earnings after one year, taking into account the base interest rate and how often the interest is compounded (interest in a money market account is usually compounded daily).
Let's say you put $1,000 into MMA at an average interest rate of 0.66% with daily compounding. At the end of one year, your balance will increase to $1,006.62 β your $1,000 initial deposit plus just $6.62 in interest.
Now, let's say you choose a high yield money market account that offers 5% APY instead. In this case, your balance would grow to $1,051.27 over the same period, which includes $51.27 in interest.
The more you deposit in a money market account, the more you can earn. If we took our same money market account example with 5% APY but deposited $10,000, your total balance after one year would be $10,512.67, meaning you would earn $512.67 in interest. …
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