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Current money market rates
Today, the highest money market rate is 5.00% compared to a national average rate of 0.58%.
Here are today’s money market account rates:
- Average APY: 0.58%
- Highest rate: 5.00%
Source: Curinos. Data accurate as of October 21, 2024. Prizes are based on a minimum amount of $10,000.
What are money market rates?
Money market interest is interest attached to a money market savings account. These rates are variable rather than fixed, so they can fluctuate and change without notice, and they can also be tiered, so higher balances offer more favorable rates. Money market interest income is credited as a percentage of your balance.
The rate you earn on your balance is your interest, while the money you earn on your balance compounded over a year is reflected in your annual percentage rate of return, or APY. Compound interest is the interest you earn on the interest you have already earned.
How does a money market account work?
Money market accounts are interest-bearing deposit accounts that work in the same way as savings accounts. You deposit money when you have some left over, and it grows more in interest the longer you leave it. These accounts are insured by the FDIC for banks and the NCUA for credit unions up to $250,000 per account. deposits. Money market accounts offer convenient fund access, often including checks and debit cards, though you may be limited to six monthly transactions.
Compared to regular savings accounts, money market accounts usually offer higher interest rates. However, they tend to require higher minimum deposits and balances to earn these.
How to open a money market account
Before opening a money market account, research at least a few options at different banks. Compare minimum balance requirements, monthly fees, withdrawal limits and APYs to choose the best fit. Don’t forget to check the conditions to earn the highest interest rates as well.
You can typically apply for a money market account online or in person. You must provide personal information such as your name, employment status and income, address and social security number, and show a government-issued ID. Then, once you’re approved, you can make your first deposit.
Money market account vs. savings account
Money market accounts act like savings accounts in some ways and checking accounts in others. Similar to savings accounts, money market accounts allow you to deposit funds however you want and earn interest on your savings. Both are highly liquid and secure deposit accounts that may have withdrawal restrictions, balance requirements and monthly fees.
Similar to checking accounts and unlike most savings, money market accounts can come with debit cards, checks, or both. This makes them a bit more flexible than the typical savings account, but money market accounts can limit transactions and are not intended for day-to-day use. Money market accounts also tend to have higher fees and deposit and balance requirements.
Is a money market account worth it?
A money market account is worth it if you have the funds to meet the deposit and balance requirements and you don’t have to pay a lot of fees. When you need easy access to your money, but you plan to save it for now, money market accounts are a low-risk option for earning interest. They are also FDIC or NCUA insured.
If you can’t meet the minimum balance requirements to earn the best rates, or if a money market account charges fees that will deplete your earnings, it may not be worth it. Consider other savings options if you’re looking for lower minimum requirements, or explore interest-control accounts if you need unlimited access to your cash.