The Fed cut its interest rate target three times in 2024, and as a result, deposit rates — including money market account rates — began to fall. It’s more important than ever to compare MMA quotes and make sure you’re making as much profit as possible from your bankroll.
The national average money market account rate is 0.66%, according to the Federal Deposit Insurance Corporation (FDIC). This may not seem like a lot, but keep in mind that three years ago, it was just 0.07%, reflecting a sharp rise in a short period of time.
This is largely due to monetary policy decisions by the Federal Reserve, which began raising its benchmark interest rate in March 2022 to combat high inflation. In fact, the Fed increased interest rates 11 times. But it finally cut its benchmark interest rate three times in late 2024, causing interest rates on deposit accounts to start falling.
However, some of the best accounts are currently offering upwards of 5% annual returns. Since these rates may not be around for much longer, consider opening a money market account now to take advantage of today’s higher rates.
Here’s a look at some of the best MMA quotes available today:
See our picks for the 10 best money market accounts available today >>
Additionally, the table below shows some of the best savings and money market account rates available today from our approved partners.
The amount of interest you can earn from a money market account depends on the annual percentage rate (APY). This is a measure of your total earnings after one year when considering the prime interest rate and how often interest compounds (interest on a money market account typically accrues daily).
Let’s say you put $1,000 into MMA with an average interest rate of 0.66% with daily compounding. At the end of one year, your balance will grow to $1,006.62 – your initial deposit of $1,000, plus just $6.62 in interest.
Now let’s say you choose a high-yield money market account offering 5% APY instead. In this case, your balance would grow to $1,051.27 over the same period, which includes $51.27 in interest.
The more you deposit into a money market account, the more you gain. If we take our same example of a 5% APY money market account, but you deposit $10,000, your total balance after one year will be $10,512.67, which means you will earn $512.67 in interest.
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