Find out which banks offer the highest rates. 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.
Although rates have dropped over the past few months, it’s still possible to find money market accounts that pay more than 4% APY.
Here’s a look at today’s best money market account rates:
Money market interest rates have fluctuated significantly in recent years, largely due to changes in the Federal Reserve’s target interest 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. By late 2023, money market account rates have risen significantly, with most accounts offering 4% or higher. However, the Fed finally started cutting rates in late 2024 and will continue to cut rates through 2025.
Through 2026, MMA rates remain high by historical standards, although they have begun a downward trajectory following the Fed’s recent rate cuts. Today, online banks and credit unions offer higher 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: Money Market Account vs High Yield Savings Account: Which is Best for You?
The national average interest rate for money market accounts is just 0.56%, according to the FDIC. However, the best money market account rates often pay around 4% APY—similar to the rates offered by high-yield savings accounts.
The amount you’ll earn on $50,000 in a money market account depends on the annual percentage rate (APY) and the amount of time you leave the money in the account. For example, if you deposit $50,000 in a money market account that pays 4.5% APY and leave it in your account for one year, you will earn $2,303 in interest.
There are currently no money market accounts that pay 5% APY. However, some high-yield savings accounts from online banks can pay upwards of 4%. You can also check with your local bank or credit union to find out if they offer a 5% APY account that fits your needs.
