In 2024, the Federal Reserve made the decision to lower its target rate not once, but three times. As a result, deposit rates, including those for money market accounts (MMAs), have begun to decline. Given this trend, it’s crucial now more than ever to shop around for the best MMA rates so you can maximize the earnings on your account balance.
Currently, the national average for money market account rates is sitting at 0.66%, according to data from the FDIC. However, don’t let that number discourage you. There are still some standout accounts on the market offering more than 5% in annual percentage yield (APY). Since these favorable rates might not stick around for the long haul, it could be a smart move to open a money market account soon and lock in these attractive rates.
Here’s a rundown of some of today’s top MMA options:
Check out our selections for the 10 best money market accounts available right now >>
Furthermore, you’ll find a table below listing some of the most competitive savings and money market account rates, courtesy of our verified partners.
The interest you earn through a money market account largely hinges on the APY. This figure gives a picture of your potential earnings over a year, taking into account the base interest rate and the frequency of compounding—MMA interest typically compounds daily.
To illustrate, if you deposit $1,000 into an MMA with an average rate of 0.66% and it compounds daily, by the end of the year, your balance would only grow to $1,006.62. That’s your initial deposit plus $6.62 in interest.
Now, let’s imagine you opt for a high-yield money market account offering a 5% APY. In that scenario, your balance would increase to $1,051.27 over the same period, earning you $51.27 in interest alone.
Naturally, the larger your deposit, the more interest you’ll earn. Using the same high-yield example, if you put in $10,000, after a year, your total would rise to $10,512.67, meaning you’d pocket $512.67 in interest. It’s clear that taking the time to find and invest in a high-yield MMA can significantly boost your savings.
