The Federal Reserve has reduced its target interest three times in 2024. So deposit rates – including money market account (MMA) rates – have started to fall. It is more important than ever to compare MMA rates and to ensure that you earn as much as possible on your balance.
The national average money market account rate is 0.64%, according to the FDIC.
Yet some of the top accounts currently offer rates of 4% APY and higher. Since these rates may not be much longer, consider opening a money market account now to take advantage of today’s high rates.
Here is a look at some of the best MMA rates available today:
View our choices for the 10 best money market accounts available today >>
In addition, the table below contains some of the best savings and money marketing rates that are available today at our verified partners.
The amount of the interest that you can earn from a money market account depends on the annual percentage (APY). This is a measure of your total income after one year when considering the basic interest rate and how often interest connections (money market account is usually combined daily).
Suppose you place $ 1,000 in an MMA at the average interest rate of 0.64% with daily composition. At the end of a year your balance would grow to $ 1.006.42 – Your initial down payment of $ 1,000, plus only $ 6.42 in interest.
Let’s now say that you choose a high -interest money market account that offers 4% APY instead. In this case your balance would grow to $ 1,040.81 in the same period, including $ 40.81 in interest.
The more you deposit on a money market account, the more you can earn. If we were to take the same example of a money market drawing at 4% APY, only depositing $ 10,000, your total balance would be $ 10,408.08 after a year, which means that you would earn $ 408.08 in interest.