October 22, 2024 (earn up to 5.05% APR)

Money market accounts (MMAs) can be a great way to store your cash if you’re looking for a relatively high interest rate as well as liquidity and flexibility.

Unlike traditional savings accounts, MMAs typically offer better returns and may also offer the ability to write checks and access debit cards. This makes these accounts ideal for storing long-term savings that you want to grow over time but can still access when needed for specific purchases or bills.

The national average interest rate for money market accounts is just 0.64%, according to the FDIC. However, the best interest rates for money market accounts are often around 4.5% to 5% APY or even higher – similar to the rates offered on high-yield savings accounts. For example:

Would you like to achieve the best possible interest rate on your savings? Here’s a look at some of the best interest rates on savings and money market accounts currently available from our verified partners.

Money market account interest rates have fluctuated significantly in recent years, largely due to changes in the Federal Reserve’s target interest rate.

During the 2008 financial crisis, for example, interest rates were kept extremely low in order to stimulate the economy. The Fed cut the federal funds rate to near zero, resulting in very low MMA rates. At the time, interest rates on money market accounts were typically around 0.10% to 0.50%, with many accounts offering interest rates at the lower end of this range.

Eventually, the Fed began gradually raising interest rates as the economy recovered. This led to higher returns on savings products, including MMAs. However, in 2020, the COVID-19 pandemic led to a short but sharp recession, and the Fed cut its key interest rate again to near zero to combat the economic fallout. This led to a sharp decline in MMA rates.

But starting in 2022, the Fed launched a series of aggressive interest rate hikes to combat inflation. This led to historically high deposit rates across the board. By the end of 2023, interest rates on money market accounts had increased significantly, with many accounts offering 4.00% or more.

In 2024, MMA rates remain high by historical standards, although they have begun a downward trend following the Fed’s recent rate cut in September. Today, online banks and credit unions tend to offer the highest interest rates.

When comparing money market accounts, it’s important to look beyond just the interest rate. Other factors such as minimum balance requirements, fees and withdrawal limits may affect the total value you receive from the account.

For example, money market accounts often require a high minimum balance to earn the highest advertised interest rate – in some cases up to $5,000 or more. Other accounts may incur monthly maintenance fees, which may affect your interest earnings.

However, there are several MMAs available that offer competitive rates with no balance requirements, fees, or other restrictions. That’s why it’s important to shop around and compare accounts before making a decision.

Also, make sure the account you choose is insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA), which guarantees deposits up to $250,000 per institution per depositor. Most money market accounts are federally insured, but it is important to double-check in the rare event that the financial institution fails.

Read more: Money Market Account vs. High Yield Savings Account: Which is Best for You?