Money Market Account Interest Rates Today, October 16, 2024 (Up to 5.05% APY)

As interest rates begin to decline following the Fed’s recent rate cut, it’s more important than ever to make sure you’re getting a competitive interest rate on your savings. One option you may want to consider is a money market account (MMA).

These accounts are similar to savings accounts – they offer interest on your balance, but may also include a debit card and/or check-writing ability.

Wondering where to find the best money market account interest rates right now? Here’s what you need to know:

What are the best money market account interest rates today?

Historically, interest rates on money market accounts have been quite high. The national average interest rate for money market accounts is just 0.64%, according to the FDIC, but the best interest rates for money market accounts often pay over 4% APY or even more – similar to the rates offered on high-yield savings accounts.

Here’s a look at some of the top MMA fares currently available:

Check out our picks for the 10 best money market accounts available today>>

Additionally, see the table below for some of the best interest rates on savings and money market accounts currently available from our verified partners.

Will interest rates on money market accounts go down soon?

Interest rates on deposit accounts – including money market rates – are tied to the federal funds rate. This is a range of interest rates set by the Federal Reserve at which banks charge each other for overnight loans. When the Fed raises interest rates, interest rates on deposit accounts typically rise. And vice versa: When the Fed lowers its interest rate, deposit rates fall.

Since July 2023, the Fed has stuck to a target range of 5.25%-5.50%. However, as inflation cooled and the economy improved, the Fed cut interest rates by 50 basis points in September. As a result, money market interest rates began to decline. Further rate cuts are expected in 2024 and 2025, meaning this may be the last chance for savers to benefit from today’s higher interest rates.

Read more: Can you lose money in a money market account?

Is now a good time to put your money into MMA?

Since interest rates on money market accounts are still high, these accounts are an attractive option for savers. Still, deciding whether the time is right to deposit into a money market account also depends on your financial goals and general economic conditions. Here are some key factors to consider:

• Liquidity requirements: Money market accounts provide easy access to your money because they often have check writing capabilities or debit card access (although there may be a cap on monthly withdrawals). If you want to keep your money handy while earning a decent return, a money market account could be ideal.

• Savings goals: If you have short-term savings goals or want to build an emergency fund, a money market account can provide a safer place for your cash and provide better returns than most traditional savings accounts.

• Risk tolerance: For conservative savers who prefer to avoid the ups and downs of the stock market, money market accounts are attractive because they are backed by FDIC insurance and cannot lose capital. However, saving for a long-term goal like retirement requires riskier investments to achieve higher returns that will get you toward your savings goal.

With interest rates still high, now might be a good time to consider a money market account, especially if you’re looking for a balance between security, liquidity and better returns than traditional savings accounts. Comparing rates from different institutions will help you find the best options available.