Updated December 10, 2023
A money market account can be an ideal place to put your savings and where you can earn a competitive APY, but you aren’t sure on the time horizon for your money. And some money market accounts offer check-writing privileges, which is another option for when you need to use your money in the account.
Bankrate’s top money market account rates are much higher than the current national average yield of 0.46 percent.
Bankrate provides you with timely news and rate information on the top money market accounts from some of the most popular and largest FDIC banks and NCUA credit unions. This way you don’t have to spend time searching many bank and credit union websites. Since 1976, Bankrate has been a trusted source of banking information to help you make well-informed decisions on your finances.
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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.
Note: Annual percentage yields (APYs) shown are as of Nov. 22, 2023. 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. Bankrate only includes banks insured by the Federal Deposit Insurance Corp. (FDIC) or credit unions insured by the National Credit Union Association (NCUA).
The Federal Reserve didn’t raise rates at its last meeting on Nov. 1. Even without a 12th rate increase in the current cycle, money market account rates are already at their highest levels in more than a decade. The money market account national average APY is at 0.46 percent as of Dec. 10, 2023, 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 this.
The Fed’s next scheduled rate announcement is Dec. 13.
Returns on savings accounts will remain at attractive levels for some time. If the Federal Reserve raises interest rates again, this will give savings yields an additional bump — but even once the Fed is done raising rates, savings yields will stay elevated until the prospect of Fed rate cuts becomes clear.— GREG McBRIDE, CFA, BANKRATE CHIEF FINANCIAL ANALYST
Money market accounts are a good option for achieving your savings goals. Choosing the right money market account 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. Follow the steps below to see if a money market account is right for you.
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.
Money market accounts generally let you withdraw money, but banks may limit withdrawals and transfers. Unlike most savings accounts, money market accounts may provide check-writing privileges. You also might have a debit card and be able to access money at an ATM. The check-writing capability of money market accounts provides a degree of flexibility and liquidity often not found in other savings accounts.
High-yielding money market accounts may pay a higher interest rate than traditional savings accounts, but their minimum deposit and balance requirements might be higher, too.
Money market accounts typically credit interest monthly, and it’s typically paid on or about the same date each month. Compounding interest happens when your interest earns interest.
The published APY on an account includes the effects of compounding during the year. The best way to compare interest rates earned on different money market accounts is to use an apples-to-apples approach: Compare APYs and not interest rates.
Bankrate’s compound interest calculator can help you determine the potential earnings on a money market account.
Opening a money market is as easy as choosing which bank and account is right for you. Some money market accounts don’t have a minimum opening balance requirement, so you won’t have to worry about keeping a certain amount in the account or incurring a maintenance fee. Compare the top APY accounts with the minimum balance that you’re comfortable with to make the best decision for your saving needs.
Prior to opening a money market account online you’ll want to:
Almost all of this information may also be needed if you open a new account in person. You may need cash or a check (or checks) to fund a new account opened in a branch.
Money market accounts are safe at an FDIC-insured bank or a federally insured credit union as long as they’re within limits and guidelines. FDIC deposit insurance covers up to $250,000 per depositor, per insured bank, for each account ownership category. An account at an NCUA credit union is insured up to the same amount as an FDIC bank. At both an FDIC bank and an 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, 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, such as:
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.
You can earn a competitive APY.
You may have check-writing privileges and/or a debit card.
Some money market accounts allow you to withdraw money from an ATM.
Some savings accounts and CDs might have higher APYs
You may be restricted to six withdrawals per statement cycle at certain banks.
You’ll want to compare money market accounts with other accounts to make sure it’s the right place for your money.
Comparing money market accounts with savings accounts, checking accounts, CDs, NOW accounts and money market funds makes sense, since all of these are useful for different financial situations or goals.
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 often get a better return. But if earning a high return is your priority, compare rates on high-yield savings accounts found at online banks, which may be superior to money market accounts and traditional savings accounts.
Meanwhile, money market accounts often combine the perks of paying interest and allowing some transactional features such as check-writing and debit card access. Most checking accounts are noninterest bearing, but they typically have no limits on the number of transactions each month.
A money market account is for money that needs to be accessible. A CD is for longer-term savings that you won’t use during the CD’s term, mainly because you don’t want to incur an early withdrawal penalty fee. Since money market account yields are usually variable, a CD could give you a fixed APY to protect you from future money market account rate decreases.
Sometimes you’re rewarded with a higher APY in a CD than you would earn in a liquid money market account. Which one is better for you will depend on your financial goals.
A negotiable order of withdrawal (NOW) account is classified as a transaction account, while a money market account is a non-transaction account, according to the Federal Reserve.
NOW accounts allow for an unlimited number of third-party payments, while money market accounts are restricted to six “convenient” transfers or withdrawals per month under Regulation D. Some banks may restrict money market account transactions further.
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.
A jumbo money market account is likely to have a higher minimum balance requirement than a normal money market account. Generally, a jumbo deposit product requires a minimum balance of $100,000. The same minimum balance requirement is also true of many jumbo CDs.
Jumbo money market accounts aren't very common, but there are at least two institutions that offer them:
Bankrate’s editorial team regularly updates rates featured on this page about every two weeks. We mainly look for the highest APYs and break ties using the minimum balance to open a CD. Bankrate’s editorial team has reviewed nearly all of the banks and credit unions that it tracks, and researches rates weekly for more than 70 popular banks and credit unions. These institutions were selected because they offer competitive APYs, are larger (based on the amount of deposits or assets), frequently appear in internet searches or other possible factors. These banks and credit unions typically offer accounts that are available nationwide. All of these banks are insured by the Federal Deposit Insurance Corp. (FDIC) and all of the credit unions are National Credit Union Administration (NCUA) credit unions, insured by the National Credit Union Share Insurance Fund (NCUSIF). Choosing an FDIC-insured bank or NCUA-backed credit union ensures your money is safe as long it’s within insurance limits and guidelines.
Bankrate has more than four decades of experience in financial publishing, so you know you’re getting information you can trust. Bankrate was born in 1976 as “Bank Rate Monitor,” a print publisher for the banking industry, and has been online since 1996. Hundreds of top publications rely on Bankrate. Outlets such as The Wall Street Journal, USA Today, The New York Times, CNBC and Bloomberg depend on Bankrate as the trusted source of financial rates and information.