In 2024, the Federal Reserve made three cuts to its target rate, causing deposit rates, such as money market account (MMA) rates, to decrease. It is crucial to compare MMA rates to maximize your earnings on your balance.

The national average money market account rate is 0.64%, as reported by the FDIC. Although, some top accounts are currently offering rates of 4% APY and above. Seize the opportunity to open a money market account now to benefit from the present high rates before they potentially decline.

The leading money market account rate is provided by First Foundation Bank, offering 4.50% APY with a minimum opening deposit of $1,000. Several top MMA rates are available today, including the top 10 money market accounts.

The interest you can earn from a money market account depends on the annual percentage rate (APY). It calculates your total earnings after a year by considering the base interest rate and the frequency of interest compounding, which typically happens daily for money market accounts. For example, with $1,000 deposited in an MMA at a 0.64% interest rate with daily compounding, your balance after a year would be $1,006.42, including $6.42 in interest.

Opting for a high-yield money market account offering 4% APY would increase your balance to $1,040.81 after a year, with interest earnings of $40.81. The more you deposit, the more interest you can earn. For instance, with $10,000 deposited in a money market account at 4% APY, your total balance after a year would be $10,408.08, with interest earnings of $408.08.