Money Market Accounts: High-Yield Savings with Flexibility and Liquidity
Money market accounts (MMAs) offer an advantageous alternative to traditional savings accounts. They typically provide higher interest rates, check-writing privileges, and debit card access. This makes them ideal for long-term savings that you want to grow while maintaining easy access for expenses or purchases.
Today's Best Money Market Account Rates
Despite recent rate fluctuations, MMAs with APYs over 4% are still available. Here are some of the top rates currently offered:
Factors to Consider When Choosing a Money Market Account
Beyond the interest rate, consider additional factors that impact the overall value of your account:
* Minimum Balance Requirements: Some MMAs require large minimum balances to earn the highest rates.
* Fees: Monthly maintenance fees can reduce your interest earnings.
* Withdrawal Limits: Limits on withdrawals may restrict your access to funds.
FDIC Insurance
Ensure your money market account is insured by the FDIC or NCUA, which guarantees deposits up to $250,000 per institution, per depositor.
Frequently Asked Questions
* What is the average interest rate for MMAs? The national average is 0.64%, but top MMA rates range from 4% to 4.75% APY.
* How much will $50,000 earn in an MMA? At 4.5% APY, you can earn $2,303 in interest in one year on $50,000.
* Is there a penalty for withdrawing from an MMA? Some banks impose penalties for excessive withdrawals within a month.
Top High-Yield Money Market Accounts
Our analysis of over 100 accounts has identified these top MMAs based on interest rates, fees, and more:
* Synchrony Bank MMA: Offers up to 4.50% APY and no minimum balance or fees.
* CIT Bank MMA: Provides 4.05% APY with a minimum balance of $5,000.
* Axos Bank MMA: Features 4.01% APY and no balance requirement or monthly fees.