The Federal Reserve has cut its target interest rate three times by 2024. So deposit rates – including money market account (MMA) rates – have started to decline. It’s more important than ever to compare MMA rates and make sure you’re earning as much as possible on your balance.
According to the FDIC, the national average interest rate on money market accounts is 0.64%.
Still, some of the best accounts currently offer rates of 4% APY and higher. Since these interest rates may not be around for much longer, consider opening a money market account now to take advantage of today’s high interest rates.
Here’s a look at some of the best MMA rates available today:
Check out our picks for the 10 best money market accounts available today >>
Additionally, the table below contains some of the best savings and money market account rates currently available from our verified partners.
The amount of interest you can earn on a money market account depends on the annual percentage rate (APY). This is a measure of your total earnings after one year, taking into account the base rate and how often the interest is compounded (money market account interest is typically compounded daily).
Let’s say you invest $1,000 in an MMA at an average interest rate of 0.64% with daily compounding. At the end of a year, your balance would rise to €1,006.42 – your initial deposit of €1,000, plus only €6.42 in interest.
Now let’s say you choose a high-yield money market account that offers a 4% APY instead. In this case, your balance will grow to €1,040.81 in the same period, including €40.81 in interest.
The more you deposit into a money market account, the more you can earn. If we were to take the same example of a money market account with a 4% APY, but deposit $10,000, your total balance after one year would be $10,408.08, meaning you would earn $408.08 in interest.