The Federal Reserve commenced decreasing the federal funds rate in 2024, leading to a decline in deposit rates such as money market account rates. It is essential now more than ever to compare money market account rates to ensure that you are maximizing your earnings.

An overview of today's money market account rates reveals that the national average stands at 0.64%, as reported by the FDIC. Although this may appear modest, it is significantly higher than the 0.07% recorded three years ago. Despite this, some top accounts currently offer APYs of over 4%. Given the likelihood of these high rates not lasting, it is advisable to consider opening a money market account promptly to benefit from the current favorable rates.

Here are some of the leading money market account rates available currently:

For a $10,000 deposit in a money market account, the interest earned depends on the APY. For instance, with an average interest rate of 0.64% and daily compounding, the balance after a year would be $10,064.20. However, opting for a high-yield money market account offering 4% APY would see the balance grow to $10,408.08 after a year, including $408.08 in interest.

Money market accounts generally have more restrictions compared to traditional savings accounts, such as requiring a higher minimum balance to earn the best interest rate or avoid fees. They also typically limit the number of monthly withdrawals to around six.

While no bank offers a 7% interest rate on money market accounts, some local banks and credit unions may have limited-time promotional rates that reach 7% on specific accounts. However, such promotional rates usually apply to a set balance and brief period.