Best money market accounts of October 2024
- • Consumer banking
- • Savings accounts and CDs
- • Personal finance
- • Savings accounts
- • Personal finance
- • Investing
- • Personal finance
- • Savings accounts
- • Personal finance
- • Investing
Updated Oct. 7, 2024
Advertiser Disclosure
The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where and in what order products appear. This table does not include all companies or all available products. Bankrate does not endorse or recommend any companies.A money market account can be an ideal place to earn a competitive yield on your savings. Bankrate’s top money market rates are yielding more than 11 times today's national average annual percentage yield (APY) of 0.42 percent. Top-yielding money market accounts often have higher APYs than traditional savings accounts. What’s more, money markets typically offer check-writing privileges, a unique feature which gives you more flexibility when withdrawing your money than you would with a savings account.
It’s likely that money market account yields will decrease in the near future as the Federal Reserve decreased the federal funds rate by 50 basis points on Sept. 18. It was the first time since March 2020 that the Fed has lowered rates. Money market rates tend to follow the Fed’s movements – and could even decrease before the Fed takes action. But the good news for savers is that top money market yields are still outpacing inflation, so your cash in a money market account isn’t losing purchasing power.
Bankrate's picks for the top money market account rates
- Vio Bank — 5.20% APY, $100 minimum deposit
- CFG Community Bank — 5.05% APY, $1,000 minimum deposit
- Quontic Bank — 5.00% APY, $100 minimum deposit
- UFB Direct — 4.83% APY, no minimum deposit
- Sallie Mae Bank — 4.20% APY, no minimum deposit
- Ally Bank — 4.00% APY, no minimum deposit
- First Internet Bank of Indiana — 3.77% APY, $100 minimum deposit
- Synchrony Bank — 2.25% APY, $1 minimum deposit
- CIT Bank — 1.55% APY, $100 minimum deposit
Note: Annual percentage yields (APYs) shown were updated between Oct. 2 and Oct. 8. All other information is current as of Oct. 7. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.
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The following accounts can be found at most banks and credit unions. They’re federally insured for up to $250,000 and offer a safe place to put your money while earning interest.
CDs are best for individuals looking for a guaranteed rate of return that’s typically higher than a savings account. In exchange for a higher rate, funds are tied up for a set period of time and early withdrawal penalties may apply.
Checking accounts are best for individuals who want to keep their money safe while still having easy, day-to-day access to their funds. ATM and other transactional fees may apply.
Savings and MMAs are good options for individuals looking to save for shorter-term goals. They’re a safe way to separate your savings from everyday cash, but may require larger minimum balances and have transfer limitations.
Best money market accounts and rates for October 2024
Note: Annual percentage yields (APYs) shown were updated between Oct. 2 and Oct. 8. All other information is current as of Oct. 7. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.
CFG Community Bank
Overview
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- CFG offers a competitive APY on its High Yield Money Market account. The account is available both online and in its branches.
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- You only earn interest if your balance is $1,000 or more. You’ll pay a $10 monthly service fee if you don’t keep at least $1,000 in your CFG Bank money market account.
Quontic Bank
Overview
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- Quontic Bank’s money market account offers a competitive yield.
- You get a debit card with this account.
- You only need $100 to open a Quontic Money Market Account.
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- You can only make a total of six transfers or withdrawals from your Quontic money market account.
- Some money market accounts at other banks earn a higher APY.
- You can only make six transfers and withdrawals from your money market account per statement period.
UFB Direct
Overview
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- UFB Direct’s Portfolio Money Market account offers a top-tier yield on all balances.
- This account offers expanded FDIC insurance of up to $225 million through the bank’s InsureGuard+ Savings program, according to UFB Direct’s website.
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- You’ll need at least $5,000 in your Portfolio Money Market account to avoid the $10 monthly service fee.
- UFB Direct’s Portfolio Savings Account was offering the same APY as the Preferred Money Market but didn’t have a potential monthly service fee. So that option might be better for savers keeping less than $5,000 in an account.
- You may need to make sure you’re within the FDIC insurance limit if you have other accounts through Axos Bank, since they all use the same FDIC certificate.
Sallie Mae Bank
Overview
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- Sallie Mae Bank offers a competitive yield with its Money Market Account.
- Its money market account doesn’t require a minimum opening deposit.
- It has check-writing privileges. Sallie Mae Bank’s money market account earned a higher yield than its savings account during Bankrate’s review.
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- You’re only able to reach Sallie Mae Bank during the week from 9 a.m. to 6 p.m. Eastern. The bank doesn’t have weekend hours. Some banks offer higher APYs on money market accounts.
Ally Bank
Overview
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- Ally Bank’s money market account offers a competitive yield.
- It also reimburses up to $10 of out-of-network ATM fees during your statement cycle.
- Ally Bank’s app has mobile deposit.
- The account has check-writing privileges and a debit card.
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- All three of Ally Bank’s balance tiers had the same yield during our review. But this could change in the future.
- You need to make a deposit within the first 30 days you have this account to keep it open.
- The bank charges $15 for expedited items, such as checks or a debit card.
First Internet Bank of Indiana
Overview
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- First Internet Bank offers one of the most competitive yields on its Money Market Savings account.
- First Internet Bank’s money market account reimburses $10 worth of out-of-network ATM fees each month. The First Internet Bank Money Market Savings account rewards those with a balance of $1 million or more. It also has a competitive yield for those with less than $1 million. (Always make sure you’re within FDIC limits and guidelines.)
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- Only accounts with balances above $1 million earn the top APY for the account. There are money market accounts with competitive APYs that don’t require a balance that high to earn the top APY.
- You’ll need to keep a daily average balance of at least $4,000 in your Money Market Savings account to avoid paying a $5 monthly service fee.
Synchrony Bank
Overview
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- Synchrony Bank’s money market account offers a yield that’s much higher than the national average.
- This account lets you access your money from an ATM and has check-writing privileges.
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- Some money market accounts have a more competitive yield.
- Synchrony has three balance tiers that were paying the same yield during our review. But this could change in the future.
CIT Bank
Overview
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- CIT Bank’s money market account offers a yield much higher than the national average.
- The account also doesn’t have transaction limits. You only need $100 to open a CIT Bank money market account.
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- There are banks that pay higher yields on money market accounts.
- CIT Bank’s Savings Connect savings account earns a much higher yield than CIT Bank’s money market account. CIT Bank’s money market account doesn’t have a debit card for ATM access.
Bankrate's expertise
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Our banking editorial team regularly evaluates data from more than a hundred of the top financial institutions across a range of categories (brick-and-mortar banks, online banks, credit unions and more) to help you find the options that work best for you.
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Recent news on money market rates
The top yield on money market accounts hasn’t changed so far in 2024. However, this top yield may decrease in the near term, with the Federal Reserve having lowered interest rates by 50 basis points on Sept. 18. Savers who prefer to lock in a rate for a set amount of time should consider a certificate of deposit (CD). Generally, money market accounts have variable APYs, so a CD is the most viable way to earn a fixed return.
Even though Bankrate’s national average for savings accounts is higher than the average money market account, generally top yielding savings accounts and money market accounts have similar yields.
Even though national averages on various deposit accounts have been decreasing slightly in 2024, money market account rates in the current cycle are at their highest levels in more than a decade. The money market account national average APY is at 0.45 percent as of Sep. 18, according to Bankrate’s most recent survey of banks. Top money market account yields — generally at FDIC-insured online banks — are more than 11 times the national average.
What our industry experts are saying
Greg McBride
CFA, Bankrate Chief Financial Analyst
Like a rock dropped in the middle of a pond, a Fed interest rate cut will ripple out in all directions. Money market rates will continue to move lower as the Federal Reserve repeatedly cuts interest rates. It will be important to seek out the most competitive offers, as even in a declining rate environment those returns will be ahead of inflation for the foreseeable future.
Marguerita Cheng
CFP, Chief Executive Officer at Blue Ocean Global Wealth
The yields on money market accounts, as well as high-yield savings accounts, will be affected by Fed rate cuts. There’s definitely going to be an impact. The same is true for Treasury bills or CDs, but the effect will be more lagging. It’s important to have both short-term savings and long-term investing. With your short-term savings, the yield may fluctuate based on what’s happening in the world around us, but you need this savings for liquidity and access.
Lauren Zangardi Haynes
CIMA, certified financial planner at Spark Financial Advisors
When the Fed starts to cut interest rates, savers should expect the interest rate they are earning on their high-yield savings accounts, and the interest rates advertised for new CDs, to come down. However, [Fed rate changes] aren’t the only factor that drives interest rates on deposits at banks. These can also depend on a bank’s business model and the need to increase deposits. If a bank needs to increase deposits, they may offer a more competitive interest rate to entice savers to move money there.
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In June 2023, Bankrate updated its methodology that determines the national average savings account rates. More than 500 banks and credit unions are surveyed to generate weekly national averages. Among these institutions are those that are broadly available and offer high yields, as well as some of the nation’s largest banks.
How to choose a money market account
Money market accounts are a good option for achieving your savings goals, especially if you choose. Choosing the right money market account that helps should help you earn a competitive annual percentage yield (APY). Some of the best money market accounts allow savers to earn a high yield as well as have check-writing privileges.
Here are the three most important things to consider when choosing a money market account:
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There are money market accounts with APYs that are outpacing current inflation.
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Check-writing privileges can be a great additional feature that some money market accounts have and savings accounts generally don’t have. Compare savings accounts with money market accounts if you don’t need check-writing privileges.
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Fees will cut into your interest earnings, so make sure you aren’t paying these.
What to know about money market accounts
A money market account with a high yield is similar to a high-yield savings account, except it might offer check-writing privileges.
A money market account is a type of savings deposit account that can be found at banks and credit unions. Money market accounts work like a savings account, where you can deposit and withdraw money. You will also earn interest on the money you keep in a money market account.
- Check-writing privileges
- A money market account may allow you to write checks against the account. This is one of the main differences between money market accounts and savings accounts. Savings accounts don’t usually offer this.
- Interest
- Money that you earn for having your funds deposited with a bank.
- Compound interest
- Earning interest on the previous interest you’ve earned.
- Interest rate
- The percentage of your balance that is paid to you over the course of one year for having your funds on deposit. This number doesn't take into account the effects of compounding.
- Annual percentage yield (APY)
- This takes into account the effects of compounding during the year. The best way to compare yields is to use this number, rather than comparing interest rates. The higher the APY, the more interest you’ll earn on your cash.
- Minimum balance requirement
- The amount you have to keep in a savings account in order to avoid a monthly maintenance fee.
Who should get a money market account?
A money market account could be an ideal option if you’re someone who’s looking for an account to boost your savings or looking for more flexibility to withdraw your savings without incurring penalties. Some of the popular reasons savers open a money market account include:
- Having a savings account that earns a high, competitive yield above a traditional savings account, especially from a major financial institution whose account yields a paltry annual percentage yield (APY) of less than 1 percent.
- Easier access to your savings without incurring a penalty as you would when withdrawing money from a timed savings account such as a CD. A money market account is a better place than a CD for your emergency fund, so you can access your money whenever you need it.
- Utilizing a savings account that gives you check-writing privileges and the ability to withdraw your savings with an ATM card. More withdrawal options could help you when you need to access your money market account balance.
- Having the freedom to deposit and withdraw cash from your savings whenever you want, although there are many accounts that continue to impose limitations on withdrawals every month.
Here are three instances when opening a money market account is advantageous to your personal finances:
- Yields on MMAs are high and you want your money to outpace inflation.
- You’re building your emergency fund.
- You want a flexible savings account that’s federally insured in case of a bank failure.
Still, money market accounts make particularly good sense in such situations as:
Some money market accounts let you write checks from your savings account.
Some money market accounts offer a debit card, which can help you access, and deposit, your savings at an ATM.
A money market account that gives you check-writing privileges can help pay for major expenses from your savings. But first check with your bank to see if it allows unlimited payments using checks or if there’s a withdrawal limit.
How to open a money market account
A money market may pay a competitive rate and provide some of the key perks of a checking account. Here’s everything you need to know about opening one.
Learn morePros and cons of money market accounts
Some money market accounts have certain features that you won’t find in a savings account. Here’s a look at some of the key advantages and disadvantages of money market accounts.
Pros
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You can earn a competitive APY.
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You may have check-writing privileges and/or a debit card.
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Some money market accounts allow you to withdraw money from an ATM.
Cons
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Some savings accounts and CDs might offer higher yielding APYs.
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You may be restricted to six withdrawals per statement cycle at certain banks.
Alternatives to money market accounts
High-yield savings account
An account that typically earns a higher yield compared with a traditional savings account (although it doesn’t offer check-writing privileges as with a money market account).
Checking account
An account designed to deposit and access your money, specifically for everyday transactions such as buying goods and services and paying bills.
CDs
A time deposit account that earns a fixed rate of return over a set period of time, with terms typically ranging from three months to five years.
No-penalty CDs
A no-penalty CD helps you earn a fixed yield while still being able to access your money if you need to.
Money market account FAQs
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Money market accounts are safe at federally-insured banks or credit unions as long as they’re within limits and guidelines. FDIC deposit insurance at member banks, for example, covers up to $250,000 per depositor, per insured bank for each account ownership category. An account at a credit union that’s a member of the NCUA offers the same insurance coverage. Whether your money market account is in a member FDIC bank or member NCUA credit union, your money that’s within limits and guidelines is protected and backed by the full faith and credit of the U.S. government should the bank or credit union fail.
To check whether a bank you're considering is FDIC-insured, use the FDIC’s BankFind tool, which can help you realize if multiple banks use the same FDIC certificate, or NCUA’s Credit Union Locator. Always double-check with the FDIC or NCUA and your financial institutions to confirm insurance coverage. -
Money market funds and money market accounts are different products. You’ll find money market accounts at FDIC-insured banks and at NCUA credit unions.
You’ll likely find money market funds at a brokerage. Money market mutual funds aren’t insured by the FDIC or the NCUSIF at an NCUA credit union. But they’re considered to be low-risk investments that are liquid. Some money market funds may also be exempt from income taxes.
Both money market accounts and money market funds may offer the ability to write checks.
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Generally, a high-yield money market account pays a higher APY than a checking account because banks can assume that your money will be in there for a longer period. You can withdraw from a money market account just like a checking account, although you may be limited to a certain maximum number of transfers or withdrawals per month.
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Most money market rates are variable, not fixed. That means the rate and APY you receive can rise or fall as market conditions change. A fixed introductory APY is the exception. During the promotional period, the fixed yield gives you a certain APY for a specific period of time. You might lose the fixed yield, however, if you don’t follow certain rules. An introductory rate may also require a deposit made with new money, which usually must come from outside the bank.
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All taxable and tax-exempt interest must be reported on your federal income tax return. Most interest that you receive or that’s credited to an account that you can withdraw without penalty is taxable income in the year it becomes available to you, according to the Internal Revenue Service. Consult with an accountant to answer your specific tax questions.
Research methodology
Bankrate’s editorial team is made up of five banking experts. These experts have researched numerous banks and at least twice a month review bank websites to make sure readers stay up to date on the latest rates and bank products.
We select banks that have high annual percentage yields (APYs), low minimum balances, banks that have highly-rated apps and banks that are popular and broadly available. We also include some of the largest banks, to help readers compare those to online-only banks.
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These financial institutions are featured in our money market account rate research: Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank5 Connect, Bank of America, Barclays, Bask Bank, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO, Bread Financial (formerly Comenity Direct), BrioDirect, Capital One Bank, Chase Bank, CIBC USA, CIT Bank, Citibank, Citizens, Citizens Bank (Rhode Island), Credit One Bank, Comerica Bank, Customers Bank, Delta Community Credit Union, Discover Bank, Emigrant Direct, EverBank (formerly TIAA Bank), Fifth Third Bank, First Citizens Bank, First Internet Bank, First Technology Federal Credit Union, FNBO Direct, Golden 1 Credit Union, Huntington National Bank, Investors Bank, KeyBank, Limelight Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, Morgan Stanley Private Bank, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, PenFed Credit Union, PNC Bank, Popular Direct, Quontic Bank, Randolph-Brooks Federal Credit Union, Regions Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, SoFi Bank, State Employees' Credit Union, Suncoast Credit Union, Synchrony Bank, TD Bank, Truist Bank, U.S. Bank, UFB Direct, USAA Bank, Vio Bank, VyStar Credit Union, Wells Fargo and Zions Bank.
Learn more
Pros and cons of a money market account
Weigh the benefits and drawbacks of money market accounts to decide if this type of account is right for you.
Bank ratings and reviews
Read Bankrate's expert reviews before deciding where to deposit your money.
Average money market rates
Stay up-to-date on how top-yielding money market accounts compare to the national average.