Best money market accounts of May 2025 (Up to 4.36% APY )

BANKRATE EXPERT FAQ

What our industry experts are saying

Greg McBride

Marguerita Cheng

Lauren Zangardi Haynes

---

Greg McBride

CFA, Bankrate Chief Financial Analyst

As a saver, if you have your money in the right place, 2025 is off to a strong start as the most competitive money market accounts still produce returns that are well ahead of inflation. While there is plenty of uncertainty about inflation, the economy, and what that means for interest rates, having money tucked away in a money market account at a competitive yield will insulate you from the unexpected and help you sleep better knowing the money is there if you need it.

Marguerita Cheng

CFP, Chief Executive Officer at Blue Ocean Global Wealth

It is important to have cash reserves for any emergencies or opportunities that arise. Money market accounts may offer a higher yield than a checking account or traditional savings account. Money market accounts allow individuals to maintain liquidity and access with the opportunity for their cash to work harder for them.

Lauren Zangardi Haynes

CFP, CIMA, certified financial planner at Spark Financial Advisors

It is unlikely we will see significant interest rate cuts in 2025.The Federal Reserve has a dual mandate, to support the labor market and control inflation. The economy appears to have faltered in the first quarter of 2025 but the April 2025 jobs report shows a stable job market. This murky picture combined with President Trump's tariff policies, which will likely be inflationary, leads us to anticipate only modest interest rate cuts later in the year. A money market account is a reasonable place to hold your short-term reserves as we expect interest rates to be fairly steady. However, for larger cash holdings, savers might want to split their cash between a CD and a money market account to lock in higher rates.

• How Bankrate calculates the national average

  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. 

• Get a competitive yield

  There are money market accounts with APYs that are outpacing current inflation.

• Confirm the bank has check-writing privileges

  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.

• Make sure you won’t be paying fees

  Fees will cut into your interest earnings, so make sure you aren’t paying these.

A money market account with a high yield is similar to a high-yield savings account, except it might offer check-writing privileges.

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 more

• Is a money market account safe?

  Money market accounts are safe at federally-insured banks or credit unions as long as they’re within limits and guidelines. When banks are covered by the Federal Deposit Insurance Corp. (FDIC), for example, funds are covered 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 National Credit Union Administration (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.

• How do money market accounts differ from money market funds?

  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.

• Why do money market accounts pay higher interest?

  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.

• Are money market rates fixed?

  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.

• Are money market accounts taxed?

  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.

• Banks we monitor

  Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Airlines Federal Credit Union, American Express National Bank, Apple Bank, Arvest Bank, Axos Bank, Banesco USA, Bank of America, Bank of Hope, Bank5 Connect, BankPurely, BankUnited Direct, Barclays Bank, Bask Bank, BMO Alto, BMO Bank, Boeing Employees’ Credit Union, Bread Savings, BrioDirect, Capital One, CFG Community Bank, Charles Schwab Bank, Chase Bank, CIBC Bank USA, CIT Bank, Citibank, Citizens Access, Citizens Bank, Colorado Federal Savings Bank, Comerica Bank, Connexus Credit Union, Credit One Bank, Cross River Bank, Customers Bank, Delta Community Credit Union, Discover Bank, East West Bank, Emigrant Bank, EverBank, Fifth Third Bank, First Citizens Bank, First Internet Bank of Indiana, First National Bank of America, First Tech Credit Union, FNBO Direct, Forbright Bank, FourLeaf Federal Credit Union, Frost Bank, Golden 1 Credit Union, Heritage Bank, Huntington National Bank, iGOBanking.com, Jenius Bank, KeyBank, Lake Michigan Credit Union, Laurel Road, LendingClub Bank, Limelight Bank, Live Oak Bank, M.Y. Safra Bank, M&T Bank, Marcus by Goldman Sachs, Merrick Bank, Morgan Stanley Private Bank, Mountain America Credit Union, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, North American Savings Bank, Northpointe Bank, Openbank, Patelco Credit Union, Pentagon Federal Credit Union, PNC Bank, Popular Direct, Presidential Bank, Provident Bank, Quontic Bank, Quorum Federal Credit Union, Randolph-Brooks Federal Credit Union, Regions Bank, Ridgewood Savings Bank, Rising Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, SoFi, SouthState Bank, Star One Credit Union, State Employees' Credit Union, Suncoast Credit Union, Synchrony Bank, Synovus Bank, TAB Bank, TD Bank, Texas Capital Bank, The Federal Savings Bank, Third Federal Savings and Loan, Truist Bank, UFB Direct, Umpqua Bank, US Bank, USAA Bank, Valley Bank, Varo Bank, Vio Bank, VyStar Credit Union, WebBank, Webster Bank, Wells Fargo, Western State Bank, Zions Bank