The federal reserve system in 2024 reduced its target rate three times. So the deposit rates – including the money market rates (MMA) – began to decline. 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%.
Yet some of the best accounts are currently offering 4% APY and higher rates. Since these rates may not be much longer, consider opening the money market account so that you can use today's high rates.
The best money market account rate is offered by First Foundation Bank today. Account holders can earn 4.50% APY with a minimum initial deposit of $ 1,000.
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 rate of your total earnings after one year when considering the basic interest rate and how often interest compounds (interest from the cash market usually folds daily).
Let's say you put $ 1,000 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 $ 1 006.42 – your initial deposit $ 1,000 plus only $ 6.42 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 $ 1,040.81 for the same period, which includes interest $ 40.81.
The more you put in the money market account, the more you earn. If we took our same example of the money market account to 4% APY, but insert $ 10,000, your total balance would be $ 10,408.08 after one year, which means you would earn $ 408.08 in interest.
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