Money Market Account Interest Rates Today, October 19, 2024 (Best Account Offers 5.05% APR)

Between March 2022 and July 2023, the Federal Reserve raised its key interest rate eleven times. As a result, money market account (MMA) interest rates rose sharply.

However, the Fed cut the key interest rate by 50 basis points in September. As a result, deposit rates – including money market account rates – have begun to decline. It’s more important than ever to compare MMA rates and make sure you’re earning as much as possible with your credit.

According to the FDIC, it is 0.64%. That may not seem like much, but consider that two years ago it was only 0.23%, reflecting a sharp increase in a short period of time.

This is largely due to the monetary policy decisions of the Fed, which began raising its key interest rate in March 2022 to counteract skyrocketing inflation. In fact, the Fed raised interest rates elevenfold. But in September it finally cut its key interest rate, causing interest rates on deposit accounts to begin falling

Still, some of the top accounts currently offer APRs of over 5%. Since these interest rates may not be around for long, consider opening a money market account now to take advantage of today’s high interest rates.

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.

The amount of interest you can earn with a money market account depends on the (APY). This is a measure of your total earnings after one year, taking into account the base interest rate and the frequency of compounding (interest on money market accounts is generally calculated daily).

Say you invest $1,000 in an MMA at an average interest rate of 0.64% with daily compounding. At the end of a year, your balance would grow to $1,006.42 – your first $1,000 deposit plus just $6.42 in interest.

Now let’s say you instead opt for a high-yield money market account that offers 5% APR. In this case, your balance would grow to $1,051.27 over the same period, including interest of $51.27.

The more you deposit into a money market account, the more you can earn. If we take the same example of a money market account with 5% APR but deposit $10,000, your total balance after one year would be $10,512.67, meaning you would earn $512.67 in interest. ​​