The federal reserve system began to reduce the rate of federal funds in 2024. As a result, deposits – including cash market rates – decreased. It is more important than ever to compare MMA rates and ensure that you earn as much as possible on your balance.
The Account rate on national average According to FDIC, it is 0.64%. This may not seem like power, but consider that three years ago it was only 0.07%. According to historical standards, the money market account rates are still relatively high.
Yet some of the best accounts currently offer over 4% APY. Since these rates may not be much longer, consider opening the money market account so that you can use today's high rates.
Here's a view of some of the best MMA rates that are available today:
Check out our tips for the 10 best money market accounts that are available today >>
In addition, the table below includes some of the best savings and money market rates that are now available from our verified partners.
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The interest amount you can earn from the money market account depends on annual percentage rate (APY). This is the degree of your total earnings after one year when considering the basic interest rate and how often interest compounds (the money market interest usually folds daily).
Let's say you put $ 10,000 into MMA at an average interest rate of 0.64% with a daily composition. At the end of one year, your balance would increase to $ 10,064.20 – your initial deposit $ 10,000 plus $ 64.20 in interest.
Let's now say that you will choose an account in the high -yield cash market that offers 4% APY instead. In this case, your balance would increase to $ 10,408.08 for the same period, which includes interest $ 408.08.
Compared to the traditional savings account, the money market account may come up with other restrictions. For example, money market accounts often require a higher minimum balance to obtain the best interest rate and/or avoid fees. Some MMA can also limit the number of selections you can make in a month (usually six).
In general, there are no banks offering a 7% interest rate on the money market accounts or any other type of deposit account. This means that you may be able to find local banks and credit unions that operate promotional rates with limited time on certain accounts, which could be up to 7%. However, promotional rates at this level often apply to limited balance.
Read more: Are there already 7% interest savings accounts?
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