The Highest Yield Money Markets

A money market account (MMA) is a type of interest-bearing deposit account that typically also allows you to use a debit card and write checks. It's an ideal combination of a savings account and a checking account. Our research has identified numerous money market accounts that offer APYs that are higher than the !AvgRateSavingAccounts! that most traditional banks offer on conventional savings accounts. The best money market accounts are currently offering yields as high as 5.54% with the average at about 0.79%. Here are some of the best money market accounts available for April 2024:  

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Business Money Market Accounts

If you are a business owner, you may benefit from having a business money market account that is tailored to your needs. Since businesses tend to process a higher number of transactions than individuals, many business money market accounts do not limit the number of withdrawals to give business owners more flexibility while at the same time benefiting from higher yields. The best business money market account is currently offering a yield of 4.80%. As interest rates have been on the rise these past few years, many banks are now offering competitive rates on business money market accounts that are higher than the 0.79% our research has identified as the average rate for personal money market accounts.

Personal Money Market Accounts

A personal money market account combines the best of both worlds between a checking account and a savings account.  They typically offer check-writing and come with a debit card. They differ from a business money market account by limiting the number of withdrawals as per Federal Regulation D, which caps withdrawals at six per month or statement cycle. The best money market account is currently offering a yield of 5.25%, which is much higher than the national average for a conventional savings account with a yield of !AvgRateSavingsAccount!. Here are some of the best personal money market accounts we've identified:

What is a money market account?

Money market accounts are a type of deposit account that typically offers a higher yield than a conventional savings account. The difference is that many money market accounts also have check-writing features and debit cards. Much like conventional savings accounts, most money market accounts limit withdrawals to six per month or statement cycle, as per Federal Regulation D. Individuals who opt for a money market account do so due to the higher yields offered. The current nationwide average yield for all money market accounts is 0.79% while the best money market account offers a yield of !TopRateMoneyMarketAccount!.

How safe is a money market account?

Money market accounts are safe as long as they are FDIC-insured at a bank or NCUA-insured at a credit union. Both insurance plans have a maximum of up to $250,000 per depositor, per insured bank, for each account ownership category. Your money in an FDIC bank or an NCUA credit union is safeguarded and backed by the full faith and credit of the United States government if the bank or credit union fails.  So as long as you are within the insurance limits, your money is safe.

Is a money market account right for me?

It depends on your banking needs. Some individuals choose money market accounts over checking and savings accounts because they offer higher interest rates and are a combination of the two. While the difference in interest received may be small, the fact that many money market accounts offer higher yields and and check-writing a debit card,, makes them a perfect combination between a checking and savings account. 

Is a money market account safe?

Generally speaking, yes. As long as your bank is FDIC insured or your credit union is NCUA insured and your account falls within the limits of up to $250,000 per depositor, per account ownership type, and per financial institution, there isn’t much to worry about as your money is safe in case of a bank failure.

How to select the best money market account

Choosing the best money market account isn’t always a straightforward decision. When shopping around for the best money market account, here are the most important factor to consider:

• Fees - As with any financial product, account fees can chip away at your account. The main fees assessed in money market accounts are non-sufficient funds fees and withdrawal limit fees(a per transaction fee is assessed for every withdrawal beyond the allowed number of withdrawals. If your money market account comes with a debit card, out-of-network fees may be assessed if you use an ATM machine that is not associated with your bank.

• Account Minimums - Some banks may require you to maintain a minimum average daily balance to avoid monthly service charges or to qualify for specific rates.

• Withdrawal Limits: As money market accounts are a type of deposit account, many operate under the Federal Regulation D, and limit the number of withdrawals to six. Some banks allow more thank six withdrawals and some offer less.

• Annual Percentage Yield (APY): The total interest you receive on money in your checking account over the course of a year is expressed as an APY. The higher the APY on your account, the harder your money that is in your checking account, will work.

Pros and cons of having a money market account

Alternatives to money market accounts

• Savings Accounts: A savings account is a deposit account that guarantees your principal and pays interest. While savings account rates at large traditional banks typically stay close to zero, some online banks offer rates higher than the average rate of !AvgRateSavingAccounts!.

• Certificates of Deposit (CDs): Banks and credit unions both offer a type of savings account known as a certificate of deposit, or CD. Generally speaking, you commit to leaving your money in the CD for a predetermined period without taking any withdrawals. Early withdrawals may incur penalties, depending on the type of CD.

• NOW Accounts: A NOW, or negotiable order of withdrawal, account is a type of interest-bearing deposit account that allows unlimited check-writing, unlike a money market account, which is typically limited to six withdrawals per month.

Frequently Asked Questions

Terms to know

Annual Percentage Yield (APY): The total interest you receive on money in an account over the course of a year is expressed as an APY. The interest rate on an account is only one component of the APY, which also considers how frequently your interest compounds. The annual percentage yield (APY) of an account provides a more precise estimate of how much money it will earn in a year.

Minimum Required Balance: The smallest amount of money you must deposit or keep in a money market account to avoid a monthly maintenance fee.

Interest: Interest is the money you earn from depositing your cash with a bank or credit union. When you deposit money with a bank, the bank borrows it from you, since it will lend a portion of it to other depositors or banks, and the money they pay you is the interest.

Compound Interest: Compound interest is the interest you earn on interest you have already been paid.  This may be demonstrated using simple math: if you have $100 and it generates 5% interest every year, you will have $105 at the end of the first year. You'll have $110.25 by the end of the second year, because you earned interest on the $105, and so on and so forth.

Methodology

Our editorial staff continually updates the information contained on our website. Our editorial staff has analyzed virtually all of the banks and credit unions that it follows, and it does weekly rate analysis for more than 250 prominent banks and credit unions. These institutions were chosen because they provide competitive APYs, low fees, and other factors we find important. These banks and credit unions often provide accounts that are available nationally. All of these banks are FDIC-insured, and all of these credit unions are NCUA-insured. Choosing an FDIC-insured bank or an NCUA-backed credit union assures that your money is protected as long as it stays within insurance limits and requirements.