The best money market accounts boast rates of up to 4.00% APY via Brilliant Bank. With this return, it surpasses the FDIC’s national average for money market accounts, which stands at 0.63% APY, by a factor of more than six. Money market accounts are akin to high-yield savings accounts with the added benefit of check-writing facilities.
Although check-writing may not be critical to all, higher APYs can be found in our daily ranking of the best high-yield savings accounts. We publish the highest money market account rates available every business day. Discover a range of savings and cash management accounts we have partnered with - from banks and crediting unions that we have, to the best money market account rates available nationwide.
Money market accounts must not be confused with investment-type accounts such as money market funds or money market mutual funds which are offered by brokerage firms. Money market accounts offered by banks and credit unions offer a blend of functions of both savings and checking accounts, with the guarantee that your funds will not lose value, apart from any fees incurred.
Interest rates for money markets are variable and adjust over time. They operate in the manner of savings or checking account where the rate is variable and the account is liquid, meaning funds can be deposited and withdrawn at will. However, the key distinction with a savings account is the ability to write checks in a money market account.
For anyone who prioritizes high-yield interest rates along with check-writing privileges, money market accounts are the perfect choice. While the APY of a money market account might not exactly match that of the best savings account, it can come very close, while providing an additional channel to withdraw funds.
When choosing your ideal money market account, consider factors such as the competitive interest rate it offers, whether the account requirements align with your needs, and so forth. Transitioning your funds to small institutions, or online-only banks that offer premium rates need not be a cause for concern. The funds are as secure as they would be at any federally insured institution and transactions are made simple by modern online banking systems.
Money market accounts are sturdy choices when easy access to cash is needed. However, be cautious of the APY, balance requirements, withdrawal limits, potential fees, and other terms that may eat into your earnings. Always ensure that the costs of the account do not outweigh its earnings.
Money market accounts tend to offer a higher return than traditional savings accounts in exchange for possibly larger initial deposits or ongoing balances. They provide the added advantage of allowing checks to be written, unlike traditional savings accounts. High-yield savings accounts and money market accounts are fairly interchangeable, except that money market accounts allow check writing.
Certificates of deposit (CDs) are another interesting alternative. With CDs, you can earn more by agreeing to leave a portion of your savings untouched for a specific duration. While CDs offer fixed rates, if interest rates were to drop in the future, CD rates remain unaffected. However, premature withdrawals could lead to penalties, and for some depositors, this supports savings discipline.
Investopedia has been monitoring bank deposit rates from over 200 nationwide banks and credit unions every weekday since 2019, and publishing the top money market accounts since 2021. It ensures the financial institutions are federally insured and that the details of the account suit the needs of customers. Check above to find the best money market account rates currently available.