Looking to store your cash and earn a relatively high interest rate along with liquidity and flexibility? Consider a money market account (MMA). Unlike traditional savings accounts, MMAs typically offer better returns and may provide check-writing privileges and debit card access.
The national average interest rate for money market accounts is just 0.66%, according to the FDIC. However, the best rates often pay around 4.5% to 5% APY. Here are some top options:
* Brilliant Bank Surge Money Market Account: up to 4.85%
* Quontic Bank Money Market Account: 4.75% APY
* TotalBank Online Money Market Deposit Account: 4.67% APY (on balances of $2,500 and up)
* VIO Cornerstone Money Market Savings Account: 4.56% APY
* First Foundation Bank Online Money Market Account: 4.50% APY
* Zynlo Money Market Account: 4.40% APY
* Prime Alliance Bank Personal Money Market Account: 4.15% APY
Historically, money market account rates have fluctuated significantly due to changes in the Federal Reserve’s target interest rate. The Fed has raised and lowered rates over the years, leading to changes in MMA rates.
When choosing a money market account, consider factors beyond just the interest rate. Look at minimum balance requirements, fees, and withdrawal limits to ensure you get the most value from your account. Also, make sure it’s insured by the FDIC or NCUA, which guarantees deposits up to $250,000 per institution.
Online banks and credit unions tend to offer the highest rates today. By shopping around and comparing accounts, you can find a competitive rate without any balance requirements or fees.
Source: https://finance.yahoo.com/personal-finance/banking/article/money-market-account-rates-today-tuesday-january-13-2025-110031254.html