Money Market Account Rates Today
Overview
With the Federal Reserve's recent rate cuts, deposit rates including those for money market accounts (MMA) are trending downward. To maximize earnings on idle funds, comparison shopping for the best MMA rates is crucial.
Nationwide Rates
The national average MMA rate stands at 0.64%, according to FDIC data. However, top-tier accounts currently offer rates as high as 4% APY. These rates may not persist indefinitely, making it opportune to open an MMA to lock in current high yields.
Top MMA Rates
* Quontic Bank Money Market Account: 4.75% APY
* Brilliant Bank Surge Money Market Account: up to 4.70%
* TotalBank Online Money Market Deposit Account: 4.67% APY ($2,500 minimum balance)
* First Foundation Bank Online Money Market Account: 4.50% APY
* VIO Cornerstone Money Market Savings Account: 4.46% APY
* Zynlo Money Market Account: 4.40% APY
* Prime Alliance Bank Personal Money Market Account: 4.15% APY
Earning Potential
The amount of interest earned with an MMA depends on its annual percentage rate (APY), which incorporates compound interest. For example, a $1,000 deposit in an MMA at 0.64% APY with daily compounding would yield $6.42 in interest over one year. In contrast, an MMA with 4% APY would return $40.81.
Considerations
* Interest rates fluctuate, so it's important to monitor rates and adjust strategies accordingly.
* Minimum balance requirements may apply to high-yield accounts.
* Consider FDIC insurance coverage for added peace of mind.