Find out which banks are currently offering the best MMA rates. As interest rates continue to fall following recent Fed rate cuts, it’s more important than ever to make sure you’re getting a competitive rate on your savings. One option you may want to consider is a money market account (MMA).
Wondering where the highest rates for money market accounts are today? Here’s what you need to know.
Historically, interest rates on money market accounts have been quite high. The national average interest rate for money market accounts is just 0.58%, according to the FDIC, but the highest rates on money market accounts often pay above 4% APY or even more – similar to the rates offered on high-yield savings accounts.
Here’s a look at some of the highest MMA rates available today:
Additionally, the table below highlights some of the best savings and money market account rates available today from our verified partners.
Deposit account rates – including money market rates – are tied to the federal funds rate. This is an interest rate range set by the Federal Reserve and is what banks charge each other for overnight loans. When the Fed raises the federal funds rate, deposit account rates generally increase. And conversely, when the Fed lowers rates, deposit rates fall.
Between July 2023 and September 2024, the Fed maintained a target range of 5.25% to 5.50%. However, as inflation slowed and the economy improved, the Fed cut the federal funds rate by 50 basis points in September 2024. It then cut another 25 basis points in November, and then another 25 basis points in December. As a result, money market rates began to fall.
Rates are expected to continue falling after the Fed’s latest rate cut this month, meaning this may be the last chance for savers to take advantage of today’s higher rates.
Learn more: Can you lose money on a money market account?
As money market account rates remain high, these accounts are an attractive option for savers. Still, deciding whether now is the right time to put money into a money market account also depends on your financial goals and the broader economic situation. Here are some key factors to consider:
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Liquidity needs: Money market accounts offer easy access to your money because they often come with check writing capabilities or debit card access (although there may be a cap on monthly withdrawals). If you need to keep your money accessible while still getting a decent return, a money market account could be ideal.
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Savings goals: If you have short-term savings goals or want to build an emergency fund, a money market account can offer a safer place for your money, with better returns than most traditional savings accounts.
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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 principal. However, if you are saving for a long-term goal like retirement, riskier investments are necessary to generate higher returns that will allow you to reach your savings goal.
With interest rates still high, now may be a good time to consider a money market account, especially if you’re looking for a balance of security, liquidity, and better returns than traditional savings accounts. Comparing prices from different institutions will help you find the best options available.
Today, the highest money market account rate is offered by Quontic Bank and HUSTL. These accounts pay 4.1%, more than seven times the national average.
In the current environment of falling interest rates, it is quite difficult to find a deposit account that earns 5%. Some promotional checking accounts have rates higher than 5% APY, although checking accounts are not a great place to store long-term cash savings. Instead, you may want to explore market investments, which carry more risk than money market accounts and other types of deposit accounts but also offer much higher returns, on average.
Yes. As long as you open an account with a federally insured bank or credit union, your money market account is safe from market risks. The only way your account will lose money is if you pay fees.
