Money market accounts (MMAs) can be a great place to store your cash if you’re looking for a relatively high interest rate with liquidity and flexibility. Unlike traditional savings accounts, MMAs usually offer better returns, and they may also provide check-writing privileges and debit card access. This makes these accounts ideal for holding long-term savings that you want to grow over time, but can still be accessed when needed for certain purchases or bills.
Find out which banks have the best MMA rates today.
The national average interest rate for money market accounts is just 0.39%, according to the FDIC. However, the best money market account rates often pay above 4% APY—similar to the rates offered by high-yield savings accounts.
Here’s a look at today’s highest money market account rates:
Money market account rates have fluctuated significantly in recent years, largely due to changes in the Federal Reserve’s target interest rate, known as the federal funds rate.
In the wake of the 2008 financial crisis, for example, interest rates were kept very low to stimulate the economy. The Fed reduced the federal funds rate to near zero, which led to lower MMA rates. During this time, money market account rates typically ranged from 0.10% to 0.50%, with most accounts offering rates at the low end of this range.
Eventually, the Fed began gradually raising interest rates as the economy improved. This led to higher yields of savings products, including MMAs. However, in 2020, the COVID-19 pandemic led to a brief but sharp recession, and the Fed once again pushed its benchmark rate closer to zero to combat the economic fallout. This resulted in a sharp drop in MMA prices.
But beginning in 2022, the Fed began a series of interest rate hikes to combat inflation. This led to historically high deposit rates across the board. As of late 2023, money market account rates have risen significantly, with most accounts offering 4.00% or higher.
Through 2024, MMA interest rates remained high, and it was possible to find accounts that paid well over 5% APY.
Today, rates remain high by historical standards, although they are on a steady downward trend following the Fed’s tapering in late 2024 and its three rate cuts in 2025. Today, online banks and credit unions offer the highest rates.
When comparing money market accounts, it’s important to look beyond just the interest rate. Other factors, such as minimum balance requirements, fees, and withdrawal limits, can affect the total value earned from the account.
For example, it’s common for money market accounts to require a large minimum balance to receive a higher advertised rate — such as $5,000 or more in some cases. Other accounts may charge monthly maintenance fees that can eat into your interest income.
However, there are many MMAs that offer competitive rates without any balance requirements, fees, or other restrictions. That’s why it’s important to shop around and compare accounts before making a decision.
Additionally, make sure the account you choose is insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA), which insures deposits up to $250,000 at each institution. Most money market accounts are federally insured, but it’s important to double-check in the rare case that the financial institution fails.
Read more: Are money market accounts safe?
Today, money market account rates are still very high by historical standards. The best accounts provide more than 4% APY, with the highest rate available today at 4.01% APY.
Earning $10,000 in a money market account depends on the annual percentage yield (APY) offered by the account, as well as how long you keep the money in the account. Let’s say you choose to deposit $10,000 in a money market account that earns 4% APY with interest compounded monthly. After one year, you will have earned $407.44 in interest, for a total balance of $10,407.44.
Money market accounts are generally safe and flexible savings options, but like other financial products, they come with some downsides.
For example, some MMAs require a higher minimum balance to open an account or earn the advertised APY. Failure to maintain this minimum balance can result in penalties or reduced interest rates. Additionally, money market rates are variable, meaning they can change at any time within the bank’s discretion. If interest rates fall, your account will have an APY, which can make future earnings more unpredictable than fixed-rate products like CDs.
