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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 25, 2024. Rates are based on a $10,000 minimum deposit amount.

What Are Money Market Rates?

Interest rates for money market savings accounts are often called money market rates. These earnings are typically credited as a percentage of your savings balance on a daily or monthly basis. Money market rates change every day. Banks and credit unions that pay tiered rates often reserve the best rates for the largest balances.

An interest rate represents the earnings made solely on your account balance. A yearly rate of return that factors in compound interest is called your annual percentage yield (APY). Compound interest is interest that accrues on the interest as you earn it.

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, look into at least a few options with different banks. Compare minimum balance requirements, monthly fees, withdrawal limits and APYs to choose the best fit. Don’t forget to check out the conditions to earn the highest interest rates too.

You can typically apply for a money market account online or in person. You will need to provide personal information such as your name, employment status and income, address and Social Security number, as well as show a government-issued ID. Then, once you’re approved, you can make your initial 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 have the funds to meet deposit and balance requirements, and you won’t have to pay many fees. When you need easy access to your money but you plan to save it for now, money market accounts are a low-risk option for earning interest. They are also FDIC- or NCUA-insured.

If you can’t meet minimum balance requirements to earn the best rates or if a money market account charges fees that will deplete your earnings, it may not be worth it. Consider other savings options if you’re looking for lower minimum requirements, or explore interest checking accounts if you need unrestricted access to your cash.

Categorized in:

Daily rates, Money Market Account,

Last Update: June 26, 2024