Compare Money Market Accounts for 2024: Earn Over 5% APY

Money Market Account FAQs

What is a money market account?

A money market account (MMA) is an account provided by banks and credit unions. It functions similarly to a savings account but often includes perks like debit card and check-writing abilities. While MMAs historically offered higher interest rates than regular savings accounts, nowadays they often have comparable rates. However, MMAs often require higher minimum deposits or balances. They typically limit the number of purchases and transfers, but ATM withdrawals are usually unlimited.

How does a money market account work?

Money market accounts function similarly to savings accounts. When you deposit money into a money market account, you start earning interest. Typically, this interest is calculated daily based on your account’s balance and paid out monthly. Money market accounts often offer competitive interest rates. Many come with features like check-writing and debit card access. This allows you to manage your finances conveniently while still earning interest on your deposits.

What is a good money market rate?

The most competitive money market accounts typically offer APYs ranging from 4.65% to 5.25%. These rates are substantially higher than the national average, which currently stands at 0.66%.

Are money market accounts safe?

Yes, money market accounts are generally considered very safe. If your bank is insured by the FDIC or your credit union is insured by the NCUA, your account is covered for up to $250,000.

Is a money market account a savings account?

Money market accounts are similar to savings accounts but usually offer higher interest rates. They might require you to maintain a higher minimum balance. They also often come with features similar to checking accounts, such as the ability to write checks or use a debit card. Unlike checking accounts, however, they may limit the number of transactions you can make or the amount of money you can withdraw.

Our top picks for savings accounts