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Current Money Market Rates

Right now, the average money market rate sits at 0.61%, but the best rate today is 5.13%.

Here are today’s money market account rates:

  • Average APY: 0.61%
  • Highest Rate: 5.13%

Source: Curinos. Data accurate as of June 26, 2024. Rates are based on a $10,000 minimum deposit amount.

What Are Money Market Rates?

Money market rates are interest rates tied to a money market savings account. These rates are variable rather than fixed, so they can fluctuate and change without notice, and they may also be tiered, so higher balances yield more favorable rates. Money market interest earnings are credited as a percentage of your balance.

The rate you earn on your balance is your interest rate, while the money you make on your balance with compound interest over a year is reflected in your annual percentage yield or APY. Compound interest is the interest you earn on the interest you’ve already made.

How Does a Money Market Account Work?

A money market account (MMA) is a type of interest-bearing deposit account offered by banks and credit unions. MMAs at banks are insured by the FDIC, while MMAs at credit unions are insured by the NCUA. In both cases, depositors are covered for up to $250,000 per account type, protecting your money in the event of bank failure. Money market accounts work like other savings accounts in that you deposit money freely and earn interest on your balance. You can take out funds whenever you need to, but you may be restricted to six transactions per statement period.

Money market accounts typically pay higher interest rates than other deposit accounts, including traditional savings accounts. And unlike typical savings accounts, they usually offer debit cards, check-writing capabilities or both, providing convenient access to cash. Money market accounts often have higher deposit and balance requirements than many bank accounts.

How To Open a Money Market Account

Before opening a money market account, take some time to check out what different banks offer. In addition to shopping around for the highest rates, you’ll want to compare minimum balance and deposit requirements, monthly fees and withdrawal limits. Look for an account that offers competitive rates you can easily qualify for.

You can typically submit an application for a money market account online or in person at a branch. The application will ask you to provide basic information, including your name, address, Social Security number, employment status and income. You will probably need to present a government-issued ID as well. After being approved, you can make your first deposit.

Money Market Account vs. Savings Account

Money market accounts share similarities with both savings and checking accounts. Like savings accounts, a money market account allows you to deposit money at your convenience and earn regular interest on your balance. Both accounts are safe and liquid, with easy access to your cash and insurance on your deposit. Either account can have monthly fees, withdrawal restrictions and balance requirements to earn interest and avoid fees. However, money market accounts typically have higher fees and balance requirements.

Like checking accounts, money market accounts often offer debit cards and checks, making them more convenient than the average savings account. However, money market accounts may limit your transactions, making MMAs less than ideal for regular use.

Is a Money Market Account Worth It?

A money market account is worth it if you want to save now but have easy access to your cash later. The accounts are safe options for putting away money because they’re FDIC- or NCUA-insured and won’t lose value. As long as you can meet deposit and balance requirements to avoid fees and earn interest, you’ll be in good shape with a money market account.

If you can’t fulfill the requirements for earning the highest rates, or if a money market account imposes fees that exceed your earnings, an MMA might not be worth it. Explore other savings accounts for smaller balances, or consider interest-bearing checking accounts if you frequently need to access your funds.

Categorized in:

Daily rates, Money Market Account,

Last Update: June 27, 2024

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