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A money market account (MMA) is a type of savings account that may allow a limited number of checks to be drawn from the account each month. The amount of interest a money market account pays and whether it's the highest-paying deposit product offered, varies from bank to bank.
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.
A money market account can be great for earning a high annual percentage yield (APY). Some accounts may let you write a limited number of checks and also offer a debit card.
Many online banks offer a more competitive yield than brick-and-mortar banks. This is because online banks don’t usually have as much overhead, since they don’t operate physical branches. Online banks need to attract your attention and high yields are a way to do this, which is good for savers.
Choosing a Federal Deposit Insurance Corp. (FDIC) money market account at an online bank is a safe way to get these high-yielding APYs. Just make sure that you’re within the FDIC’s guidelines and limits.
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We regularly survey approximately 4,800 banks and credit unions in all 50 states to provide you with one of the most comprehensive comparisons of rates. All of the money market accounts below, which are savings accounts that may let you write a limited amount of checks per month, are insured by the FDIC at banks or the NCUA at credit unions. When selecting the best money market account, look for the highest yield while also considering introductory rates, minimum balances and accessibility.
*$100,000 minimum balance required for the highest APY offered.
**Highest APY is with at least $100,000 in a Jumbo Money Market Savings Account.
Note: Annual percentage yields (APYs) shown are as of May 18, 2022. Bankrate's editorial team updates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products.
Vio Bank is a division of MidFirst Bank. Vio Bank offers the Cornerstone Money Market Account, a High Yield Savings account and 10 terms of CDs. The money market account and the savings account at Vio Bank have consistently offered a competitive APY this year.
Sallie Mae is mainly associated with student loans, but it also provides a range of savings products for consumers. The bank offers money market and high-yield savings accounts and CDs.
BrioDirect offers a Money Market Account with a competitive yield that requires $100 to open.
CIT Bank, an online bank is a subsidiary of First Citizens Bank, following the completion of a merger in January 2022. In addition to its money market account, CIT Bank offers two savings accounts, a checking account, eight terms of CDs, four terms of jumbo CDs and an 11-month no-penalty CD.
Ally Bank has about 2.3 million deposits customers, according to its 2020 annual report. Ally Bank launched in 2009.
Discover Bank is an online bank that offers a variety of products. It has a money market account, a savings account, a checking account, and 12 terms of both regular CDs and IRA CDs.
TIAA Bank provides a range of banking, lending and investing options. Its deposit products include a high-yield money market account, checking, savings and CDs. In addition to competitive rates on banking products, TIAA Bank also offers mobile banking and online tools.
Navy Federal has been around since 1933. It has more than 9 million members. Active duty members of the Air Force, Army, Coast Guard, the U.S. Marines, National Guard and Space Force, veterans and retirees are some that are eligible to join this credit union.
Immediate family members of military members can join Navy Federal Credit Union, too.
Synchrony Bank offers a money market account, a savings account and CDs.
The best way to choose a money market account is to compare APYs and minimum balance requirements. You’ll want to look at how much money you must always have in the account to avoid a maintenance fee and the minimum to earn the stated APY.
Also, look at features, such as ATM access via an ATM card, and check-writing privileges. If these features aren’t offered, that’s OK, but make sure you understand how you’ll access this money. If it’s money that’s going to be used daily, then a checking account might be more appropriate than a money market account.
If access to a branch is important, choose a bank that has brick-and-mortar locations. If earning a higher APY is more important than in-person service, then an online bank is likely best way to earn more interest. An online bank may offer convenient customer service options by phone availability, or through secure messaging on its website or mobile app. It may also allow live chats with a customer service representative on its website.
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 into it. You will also earn interest on the money you deposit into a money market account. Money market accounts generally let you withdraw money, but banks may limit withdrawals and transfers. Unlike most savings accounts, money market accounts may have check-writing privileges. You also might have a debit card and be able to access money at an ATM. High-rate money market accounts may pay a higher interest rate than traditional savings accounts, but their minimum deposit and balance requirements may be higher.
Money market accounts are offered by FDIC banks and National Credit Union Administration (NCUA) credit unions. Money market accounts typically have a few advantages, including a high yield, check-writing privileges, and ATM access. They may have some disadvantages, though. For example, some institutions might limit the number of withdrawals or transfers per statement cycle, and you may be able to find a high-yield savings account that has a higher yield. Money market accounts might have a higher minimum balance requirement than a high-yield savings account. But you should be able to find a money market account with no minimum balance requirement or a low one. This is especially true at online banks.
Money market accounts may come with checks and a debit card, which distinguishes them from high-yield savings accounts. The check-writing capability of money market accounts provides a degree of flexibility and liquidity often not found in other savings accounts. Like a traditional savings account, there's no set term for maturity with a money market account — you can park cash for an unlimited amount of time. You may be required to make a transaction every so often to prevent your account from going dormant. Check with your bank for its policies.
Safety is a top feature of these financial tools. Money market accounts are insured up to $250,000 at banks that are insured by FDIC. The National Credit Union Share Insurance Fund (NCUSIF) provides all members of federally insured credit unions with $250,000 of coverage for single ownership accounts at an NCUA credit union.
Actions taken by the Federal Reserve directly impact money market account yields. An increase in the could cause money market account yields to increase — especially at banks and credit unions that offer competitive yields. Online banks and credit unions typically feature the highest APYs.
In recent years, the Fed cut rates twice in March 2020 in response to the coronavirus outbreak. The emergency rate cuts brought the federal funds rate down to zero. Rates remained low until March 2022, when the U.S. central bank raised rates for the first time since 2018 in response to surging inflation. Two months later, in May 2022, the Fed raised rates 50 basis points — the largest rate increase since May 2000. Many banks, especially online banks, have raised APYs in response and in anticipation of further rate hikes.
The APY on an account includes the effects of compounding during the year. So, when you compare APYs, you can tell which account is going to help your money grow the most. The best way to compare interest you’ll earn on different money market accounts is using an apples-to-apples approach. Always compare APYs and not rates. You can use our compound interest calculator to determine your potential earnings on a money market account.
Money market accounts typically credit interest monthly. You’ll usually receive your interest payment on or around the same date each month.
The average interest rate on a money market account is currently 0.08 percent, according to Bankrate's weekly survey of institutions. Yet some banks are offering about seven times that. That makes it crucial to shop for the best deal when you're searching for a money market account.
It's important to remember that institutions can change their interest rates at any time, pushing returns higher or lower depending on the market.
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.
An introductory rate may be a good deal if rates decrease or don’t increase during the promotional period.
Since money market rates are expected to stay relatively steady in 2021, a high introductory rate might be something to consider. Check to see how competitive the ongoing APYs are in order to get a sense of whether your yield after the introductory APY expires will still be competitive. But remember, it’s not a guarantee since APYs are usually variable.
Money market accounts at an FDIC-insured bank or a federally insured credit union are safe as long as they’re within limits and guidelines. FDIC deposit insurance covers accounts at FDIC banks up to at least $250,000. An account at an NCUA credit union is insured up to the same amount as a FDIC bank. At both an FDIC bank and a 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 or not a bank you're considering is FDIC-insured, you can use the FDIC’s BankFind tool. The tool may also help you realize if multiple banks use the same FDIC certificate. Always double-check with the FDIC or NCUA and your financial institutions to confirm insurance coverage.
Anyone looking for a safe place to stash a good chunk of money and earn some interest may benefit from a money market account. But these accounts make particularly good sense in a handful of situations. For example:
As a saver, it's important to know the differences between a money market account, savings account, and a CD.
Minimums and fees to open and maintain a money market account vary by institution.
There are typically a few types of minimums you should watch for: minimum deposit requirements to open an account, minimum amounts to earn the APY and minimums to avoid fees.
Watch for monthly fees, transfer fees, shipping fees, inactive account fees or any other penalty you might incur for not using the account to the bank's specifications.
You’re usually able to withdraw money from a money market account without penalty. Exceptions may be if a bank charges a fee after a certain number of withdrawals are made or if the withdrawal is made to close an account — and the account charges an early close-out fee.
Yes, you can add money to a money market account. Money market accounts are liquid accounts, so you can add to the account at any time.
Banks may allow you to deposit checks using a mobile app. While additions aren’t limited, withdrawals may be limited on a money market account.
Some money market accounts, but not all, provide the ability to write checks and pay bills directly from the account. These accounts may even come with a debit card. But there's a limit to the number of certain transactions you can make. Money market accounts only allow for up to six types of withdrawals or transfers per statement cycle.
If check writing is a feature you want in a money market account, confirm with the institution before opening an account that its product offers that capability.
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.
If you want the ability to write checks or use a debit card, money market accounts are a good alternative to traditional savings accounts. And you'll typically get a better return. But if earning a high return is your priority, don't forget to check out the rates on high-yield savings accounts found at online banks, which may be superior to money market accounts and traditional savings accounts.
While a money market account is very similar to a traditional savings account, there are pros and cons to each.
A money market account is for money that needs to be accessible. A CD is more for longer-term money that you won’t use during the CD’s term, mainly because you don’t want to incur an early withdrawal penalty fee.
Sometimes you’re rewarded with a higher APY in a CD than you would earn in a liquid money market account. Deciding which one is better for you will depend on your financial goals.
There are positives and negatives when comparing a money market account with a CD.
Money market funds and money market accounts are different products. You’ll find money market accounts and 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.
Both money market accounts and money market funds may offer the ability to write checks.
| Bank / Institution | APY | Minimum Balance To Open Account | Monthly Fees |
|---|---|---|---|
| Vio Bank | 0.80% | $100 | $0 |
| Sallie Mae Bank | 0.75% | $0 |
$0 |
| BrioDirect | 0.70% | $100 |
$0 |
| CIT Bank | 0.70% | $100 |
$0 |
| Ally Bank | 0.60% | $0 | $0 |
| First Internet Bank of Indiana | 0.60% | $100 | $0 |
| Discover Bank | 0.50%-0.55%* |
$2,500* | $0 |
| TIAA Bank | 0.50% | $500 | $0 |
| Navy Federal Credit Union | 0%-0.50%** | $0** | $0 |
| Synchrony Bank | 0.40% | $0 | $0 |
*$100,000 minimum balance required for the highest APY offered.
**Balances of $100,000 or more earn this APY.