Find out which banks offer the best rates. Money market accounts (MMA) can be a great place to store your money if you’re looking for a relatively high interest rate as well as liquidity and flexibility.
Unlike traditional savings accounts, MMAs generally offer better returns and may also offer check writing privileges and debit card access. This makes these accounts ideal for holding long-term savings that you want to grow over time, but can still access when needed for certain purchases or bills.
Even though rates have fallen in recent months, it’s still possible to find money market accounts that pay more than 4% APY.
Here’s a look at some of today’s best rates for money market accounts:
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Rates on money market accounts have fluctuated considerably in recent years, largely due to changes in the Federal Reserve’s target interest rate.
Following the 2008 financial crisis, for example, interest rates remained extremely low to stimulate the economy. The Fed reduced the federal funds rate to near zero, which led to very low MMA rates. During this period, money market account rates typically ranged from 0.10% to 0.50%, with many accounts offering rates at the lower end of this range.
Eventually, the Fed began gradually raising interest rates as the economy improved. This has led to higher returns on savings products, including MMAs. However, in 2020, the COVID-19 pandemic led to a brief but severe recession, and the Fed once again lowered its benchmark rate to near zero to combat the economic fallout. This led to a sharp decline in MMA rates.
But starting in 2022, the Fed embarked on a series of aggressive interest rate hikes to combat inflation. This has led to historically high deposit rates across the board. By the end of 2023, money market account rates had increased significantly, with many accounts offering 4% or more. However, the Fed finally began cutting rates in late 2024 and will continue to cut rates throughout 2025.
Since 2026, MMA rates remain high by historical standards, although they have begun a downward trajectory following the Fed’s latest rate cuts. Today, online banks and credit unions tend to offer the highest rates.
When comparing money market accounts, it’s important to look at more than just the interest rate. Other factors, such as minimum balance requirements, fees, and withdrawal limits, may impact the total value you get from the account.
For example, it is common for money market accounts to require a large amount minimum balance to get the highest advertised rate – up to $5,000 or more in some cases. Other accounts may charge monthly maintenance fees this can eat into your interest income.
However, there are several MMAs that offer competitive rates without any balance requirements, fees or other restrictions. That’s why it’s important to shop around and compare accounts before making a decision.
Additionally, make sure the account you choose is insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA), which guarantees deposits up to $250,000 per institution per depositor. Most money market accounts are insured by the federal government, but it is important to double-check in the rare case that the financial institution fails.
Learn more: Money Market Account or High Yield Savings Account: Which is Right for You?
The national average interest rate for money market accounts is just 0.58%, according to the FDIC. However, the best money market account rates often pay around 4% APY – similar to rates offered on high yield savings accounts.
How much you’ll earn on $50,000 in a money market account depends on the annual percentage rate (APY) and how long you leave the money in the account. For example, if you deposit $50,000 into a money market account that earns 4.5% APY and leave it in your account for a year, you will earn $2,303 in interest.
There are currently no money market accounts that earn 5% APY. However, some high-yield savings accounts from online banks do. You can also check with your local bank or credit union to see if they offer a 5% APY account that meets your needs.
