The federal fund began to cut the federal fund rate in 2024. As a result, deposit rates – including cash market accounts rates – have been declining. It is more important than ever comparing MMA rates and making sure you earn as much as possible on your balance.
The National Average Money Market Account Rate Standing at 0.64%, according to the FDIC. This may not seem like much, but consider that it was only 0.07%three years ago. So according to historic standards, money market account rates are still quite high.
However, some of the best accounts currently offer over 4% APY. As these rates may not be approximately longer, consider opening a cash market account now to take advantage of today's high rates.
Here's a look at some of the best MMA rates available today:
See our spikes for the best 10 money market accounts available today >>
In addition, the table below includes some of the best savings and money account rates available today from our checked partners.
The size of interest you can earn from a cash market account depends on the annual percentage rate (Apy). This is a measure of your total earnings after a year when considering the basic interest rate and how often interest is composing (money market count interest typically combines daily).
Say you put $ 10,000 in MMA at the average interest rate of 0.64% with a daily compound. At the end of a year, your balance would grow to $ 10,064.20 – your initial deposit $ 10,000, plus $ 64.20 in interest.
Now, let's say you're choosing a high -product money market account that offers 4% app instead. In this case, your balance would grow to $ 10,408.08 over the same period, which includes $ 408.08 in interest.
Compared to a traditional savings account, a cash market count can bring more restrictions. For example, money market accounts often require a higher minimum balance to earn the best interest rate and/or avoid fees. Some MMAS can also limit the number of withdrawals that you can make every month (typically six).
Generally, there are no banks that offer a 7% interest rate on money market accounts or any other type of deposit account. That said, you may be able to find local banks and credit unions that run limited time promotion rates on some accounts, which may be as high as 7%. However, promotional rates at this level often apply to limited balance.