Strauss/Curtis/Getty Images

Strauss/Curtis/Getty Images

What is a money market account?

A money market account, or MMA, is a savings account that allows a limited number of checks to be drawn from the account each month. The rates on MMA savings accounts are typically higher than traditional savings accounts but may require larger minimum deposits and balances.

If you need more than occasional account access and are looking for higher yields, an MMA can be a better option than a traditional savings account. The best money market accounts offer compelling rates.

10 best MMA rates
Bank APY Minimum balance
All America Bank 1.75% $50
Redneck Bank 1.75% $50
CIT Bank 1.75% $100
ableBanking 1.70% $250
BankPurely 1.70% $25,000
iGObanking 1.70% $25,000
UFB Direct 1.60% $5,000
Nationwide Bank 1.55% $10,000
Beal Bank USA 1.55% $25,000
Northern Bank Direct 1.51% $5,000


Compare the best money market accounts and pick the one that offers the right minimum deposit and interest rate for your financial situation.

What money market accounts do

At their core, MMAs are basically just a type of savings account, with some minor variations. How much interest an MMA pays, and whether it’s the highest-paying deposit product offered, varies from bank to bank.

The best MMA rate available to all savers is 1.75 percent APY. That’s more than 12 times the national average, according to Bankrate’s latest national survey of banks and thrifts. But there are more than a dozen banks that offer money market rates as high as 1.2 percent APY.

How do money market accounts stack up?

Comparing account features

Savings Checking Money market account
FDIC-insured X X X
You get a checkbook for withdrawal X X
You get a debit card for withdrawal X X
Limited transactions X X
Unlimited transactions X

Some of the best money market accounts require a significant minimum deposit. If $5,000 is too much for you to tuck away, look to a bank that has a lower requirement.

Use Bankrate’s simple savings calculator to see how much you stand to make with each of these accounts.

How does interest work with an MMA?

Interest on an MMA is compounded—either daily or monthly and the interest is paid out usually monthly or quarterly.

Your interest rate can always change. Some banks have been gradually increasing interest rates in response to the Federal Reserve. Though this could mean you’ll pay more interest on credit cards and auto loans, it could also mean higher interest rates on savings accounts. Keep an eye out for the ripple effects of the Fed’s decisions.

In the meantime, if you’re looking for a guaranteed return, compare the best savings rates with the top CD rates.