The Federal Reserve has cut its target rate three times in 2024, causing deposit rates and money market account (MMA) rates to fall. However, it’s essential to compare MMA rates now, as these high rates may not be around for long.
According to the FDIC, the national average MMA rate stands at 0.66%. While this is lower than the top accounts available today, which offer rates of up to 5% APY. These high-yield options make it crucial to open a money market account as soon as possible to maximize your earnings.
Currently, some top MMA rates include:
– Quontic Bank Money Market Account: 4.75% APY
– Brilliant Bank Surge Money Market Account: up to 4.70%
– TotalBank Online Money Market Deposit Account: 4.67% APY (on balances of $2,500 and up)
– First Foundation Bank Online Money Market Account: 4.50% APY
– VIO Cornerstone Money Market Savings Account: 4.46% APY
To understand how much interest you can earn from a money market account, consider the annual percentage rate (APY). This measures your total earnings after one year, including daily compounding. For example:
– At an average interest rate of 0.66%, $1,000 deposited for a year would grow to $1,006.62.
– At 5% APY, the same deposit would earn $51.27 in interest, and grow to $1,051.27 over the same period.
The more you deposit in a money market account, the higher your earnings potential.
Source: https://finance.yahoo.com/personal-finance/banking/article/money-market-account-rates-today-sunday-january-19-2025-110013376.html