In 2024, the Federal Reserve initiated a series of cuts to the federal funds rate, leading to a decrease in deposit rates, including those of money market accounts. As a result, it is crucial to compare money market account rates diligently to maximize your earnings.

Currently, the national average money market account rate is 0.64%, as reported by the FDIC. While this rate may seem low, it is significantly higher than the 0.07% rate from three years prior, suggesting that rates remain relatively high historically.

Some top money market accounts are offering over 4% APY presently. Given the potential for these rates to decrease soon, it is advisable to consider opening a money market account now to benefit from the current high rates.

Explore our selection of the top 10 money market accounts available today for more information. Additionally, view a table featuring competitive savings and money market account rates from our trusted partners (not viewable in your region).

The return on a $10,000 deposit in a money market account depends on the annual percentage yield (APY), which encompasses the base interest rate and the frequency of interest compounding, typically done daily. For instance, depositing $10,000 in a money market account at a 0.64% interest rate with daily compounding would yield $10,064.20 at year-end, an increase of $64.20.

Alternatively, opting for a high-yield money market account with a 4% APY would grow the balance to $10,408.08 in the same period, including $408.08 in interest.

Money market accounts may have more restrictions compared to traditional savings accounts. These restrictions can include maintaining a higher minimum balance for optimal interest rates and/or to avoid fees, as well as limits on monthly withdrawals, typically capped at six.

While it is rare to find a bank offering a 7% interest rate on money market accounts or other deposit accounts nowadays, some local banks and credit unions may occasionally run promotional rates that reach as high as 7%. However, such promotional rates usually apply to a limited balance and are time-constrained.