Money Market Account (MMA) Rates: Maximize Your Savings
Overview:
In 2024, the Federal Reserve's rate cuts have led to a decline in deposit rates, including MMA rates. Now more than ever, it's crucial to compare MMA rates to ensure optimal returns on your savings.
Current MMA Rates:
According to the FDIC, the national average MMA rate is 0.64%. However, several top accounts offer rates as high as 4% APY or more. Consider opening an MMA today to capitalize on these competitive rates before they expire.
Interest Earnings:
The interest you earn on an MMA depends on its annual percentage yield (APY). APY considers the base interest rate and how often it compounds (typically daily).
* For a $1,000 deposit in an MMA at 0.64% APY with daily compounding, you'll earn approximately $6.42 in interest after one year.
* If you opt for a higher-yield MMA with 4% APY, your earnings would increase to $40.81 for the same period.
Maximizing Earnings:
The deposit amount also affects your potential earnings. For instance, with a 4% APY MMA, a $10,000 deposit would yield $408.08 in interest after one year.
Additional Resources:
* Comparison of MMAs: https://www.nerdwallet.com/best/money-market-accounts
* Savings Account vs. MMA: https://www.nerdwallet.com/article/banking/savings-account-vs-money-market-account
* APY vs. Interest Rate: https://www.nerdwallet.com/article/banking/calculate-apy