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Money market accounts (MMAs) are interest-bearing bank accounts that share some of the best features of a checking and savings account. Opening a money market account is a fast way to earn money while you're saving for shorter-term goals.
Here are our picks for the best money market accounts.
We pride ourselves on being able to confidently say that these money market accounts are chosen by personal finance experts that operate independently of our Partnerships team, meaning the picks on this page are not and never have been influenced by advertising deals.
Our Ratings team:
Offer | APY | Minimum to Earn APY | Fees | Next Steps | |
---|---|---|---|---|---|
Member FDIC.
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
APY:
4.00%-4.05%
Rate info
4.00% applies to balances under $100K, Need $100,000+ to earn 4.05%
|
Minimum To Earn APY:
$0.01-$100,000 for 4.00%; $100,000+ for 4.05%
|
Monthly Fee: $0 Monthly Fee:
$0
Min. Balance: $2,500 to open, no min balance to maintain |
Min. Balance:
$2,500 to open, no min balance to maintain
|
|
Federally insured by NCUA.
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
APY:
5.20%
|
Minimum To Earn APY:
$1
|
Monthly Fee: $0 Monthly Fee:
$0
Min. Balance: $1 |
Min. Balance:
$1
|
|
Member FDIC.
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
APY:
5.30%
|
Minimum To Earn APY:
$0
|
Monthly Fee: $0 Monthly Fee:
$0
Min. Balance: $100 |
Min. Balance:
$100
|
|
2024 Award Winner
Member FDIC.
Rating image, 5.00 out of 5 stars.
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor
Rating image, 5.00 out of 5 stars.
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
APY:
4.20%
|
Minimum To Earn APY:
$1
|
Monthly Fee: $0 Monthly Fee:
$0
Min. Balance: $0 |
Min. Balance:
$0
|
|
Member FDIC.
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
APY:
4.65%
|
Minimum To Earn APY:
$0
|
Monthly Fee: $0 Monthly Fee:
$0
Min. Balance: $0 |
Min. Balance:
$0
|
|
Member FDIC.
Rating image, 5.00 out of 5 stars.
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor
Rating image, 5.00 out of 5 stars.
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
APY:
3.75%-4.30%
Rate info
$100,000 and up: 4.30% ongoing APY
$50,000 - $99,999.99: 4.05% ongoing APY
$25,000 - $49,999.99: 3.75% ongoing APY
$10,000 - $24,000.00: 3.75% ongoing APY
$0 - $9,999.99: 3.75% ongoing APY
|
Minimum To Earn APY:
$0 for minimum APY
|
Monthly Fee: $0 Monthly Fee:
$0
Min. Balance: $0 |
Min. Balance:
$0
|
Current money market rates have reached over 5.00% APY. These rates are some of the highest we've seen in a while, thanks to today's rate environment. Here are our top picks for the best money market accounts, ordered by highest APY:
Discover® Money Market
This account offers a competitive APY, especially given there are no monthly service fees, while still giving access to ATMs and checks. The minimum balance to open the account may be a little high for some folks, but you don't need to maintain a high balance to earn a good rate.
American First Credit Union Money Market Deposit Account from Raisin
American First Credit Union is a well-established midsize credit union that offers NCUA-insured deposit accounts. The American First Credit Union Money Market Deposit Account from Raisin could be a great choice if you're looking for a high APY savings product. It offers a higher APY than you'd get when opening an account directly through the credit union, plus you get access to Raisin's savings marketplace and easy account management. On the other hand, accounts through Raisin do not offer branch access and limit you to using one account to transfer money in and out of the money market account.
Vio Bank Cornerstone Money Market Savings
Vio Bank is the online bank division of MidFirst Bank, the largest privately held bank in the United States and an FDIC member. It offers a competitive rate for its Money Market Savings Account and no monthly fees as long as you agree to electronic statements. There is a $100 minimum deposit with this account and it is FDIC insured.
The online bank has no physical branches and no ATM network. This makes accessing cash on the go a little more difficult. The online bank does not offer a checking account so you are limited to only a few products in its lineup.
Ally Money Market Account
Ally's banking approach carries over to its money market account with a high APY and a focus on cutting routine account fees to $0, including monthly maintenance. What's more, there are no minimum balance requirements.
Sallie Mae Money Market
Sallie Mae Bank's money market account can grow your money at a competitive rate with no minimum deposits or fees. You can access savings through checks and electronically deposit funds into your account.
EverBank Performance℠ Money Market Account
No minimum to open/maintain account
This account is a strong option for folks who have short-term savings needs.
The Federal Reserve raised benchmark interest rates sharply in 2022 and 2023, and money market account interest rates increased significantly as well. A couple years ago, it was difficult to find a money market account with an APY greater than 0.50%, but that is no longer the case.
As of June 2024, it is fairly easy to find a money market account with an APY of 4.00% or higher from a reputable online-based financial institution. Of course, money market rates are variable and will change over time. But, you can still snag a great APY on one of these accounts now.
The Federal Reserve is widely expected to start lowering interest rates later in 2024 and throughout 2025. If this happens, it is fair to assume that money market interest rates would trend lower as well. However, it's important to realize that money market rates don't have a direct relationship with the Fed's interest rate movements, although they tend to move in the same direction.
If you're interested in opening a money market account, you'll want to be sure to choose the right one. Here's what you should look for:
It could be a good idea to open a money market account if you:
The best money market rates allow you to earn money on your money. They also sidestep the biggest problem of a savings account: With a savings account, you cannot usually withdraw funds directly. Instead, you have to transfer funds to a checking account first. Money market accounts, on the other hand, let you take out cash directly through a debit card, checks, or both.
They're not a great replacement for a checking account, unless you rarely withdraw funds. But a money market account could replace your savings account. Both money market accounts and savings accounts are subject to Regulation D rules, which may limit you to six convenient withdrawals per month and a bank may charge you extra for exceeding these limits. In response to the pandemic, the government waived this rule in 2020, but individual banks still restrict the number of monthly transactions you can make.
The account opening procedure for a money market account can vary from bank to bank. Some (including the MMAs on this list) can be opened completely online, while others may require you to open them in person.
For those on our list, the first step is to fill out the bank's online account application. Be prepared to provide some identifying information, such as your Social Security number. Once you've filled out the application, you'll typically need to provide a bank account to link for the purpose of deposits and withdrawals, unless you already have a checking or savings account with the same institution. Finally, you'll transfer or send your initial deposit to fund the account and start earning interest.
To recap, here are the basic steps to open a money market account:
If you don't think a money market account is a good fit for you, here are some other options worth considering.
A savings account is another type of deposit account that offers a similar APY to a money market account, but has more restrictions on accessing funds. You're usually limited to six savings account withdrawals per month if you'd like to avoid fees, and savings accounts lack check-writing capabilities and rarely offer debit cards.
The best savings accounts tend to have lower minimum balance requirements than the top money market accounts, and some may not have minimum balance requirements at all. And if your goal is to max out your interest income, there's a good chance that you'll find the highest APY on a savings account.
READ MORE: Savings Accounts vs. Money Market Accounts
Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.
A certificate of deposit (CD) gives you a guaranteed rate of return for a specific period of time. CD rates are comparable to or even higher than money market account rates; better yet, the rate is fixed for the length of your term. However, in exchange for a fixed rate, you have to keep your money locked up until the CD matures or risk paying an early withdrawal penalty.
CD terms can range from a month to 10 years, with most falling between six months and five years. They can be a great place for savings you don't intend to use anytime soon, and can provide a safe and predictable income stream
READ MORE: CDs vs. Money Market Accounts
Here are some common terms used when discussing money market accounts and rates:
Term | Definition |
---|---|
Money market account | An MMA is a deposit account that pays interest over time. The main difference between an MMA and savings account is that MMAs have check-writing abilities and may come with debit cards. |
Annual percentage yield (APY) | APY is how much a deposit account earns within a 12-month period. It takes into account the actual interest rate as well as how often that interest compounds. |
Minimum balance | Some money market accounts require a minimum deposit to open the account or to avoid monthly maintenance fees. These minimum balance requirements are often higher than the requirements for savings accounts. |
Transaction limits | Money market accounts may be subject to restrictions on the number of convenient withdrawals you can make without incurring additional fees. Convenient withdrawals include electronic transfers, most check withdrawals, and online bill pay, but do not include things like withdrawals made at a branch location or cash taken out at an ATM. |
At The Motley Fool Ascent, we evaluate money market accounts based on four main criteria: annual percentage yield (APY), brand and reputation, fees and minimum balance requirements, and perks.
Our scores are weighted as:
Our aim is to maintain a balanced list featuring top-scoring products from reputable brands offering competitive APYs and standout features. Learn more about how The Motley Fool Ascent rates bank accounts.
Here are the 100+ financial institutions we've evaluated in our research:
Alliant, Ally, All America Bank, American First Credit Union, American Express® National Bank, Arvest Bank, Aspiration, Axos Bank, B2 Bank, Bank of America, Bank5 Connect, Bank7, Barclays, Bask Bank, Betterment, Bluevine, BMO, Bread Financial, Capital One, Carver Federal Savings Bank, Charles Schwab Bank, Chase, Chime, CIT, Citibank, Citizens Bank, Citizens Savings Bank, Columbia Bank, Connexus Credit Union, Consumers Credit Union, Copper, Cross River Bank, Customers Bank, Discover® Bank, E*TRADEEdward Jones, EverBank, Fidelity, Fifth Third Bank, First Foundation Bank, First Internet Bank of Indiana, First National Bank, First Tech Federal Credit Union, Flushing Bank, Freedom Bank, Generations Bank, GN Bank, Golden 1 Credit Union, Greenlight, Harborstone Credit Union, HSBC, Huntington Bank, Ivella, Kabbage by American Express, KeyBank, Laurel Road, LendingClub, Liberty Bank, Liberty Federal Credit Union, Marcus by Goldman Sachs, Mercury, Municipal Credit Union, Mutual of Omaha, NASA Federal Credit Union, Nationwide Bank, Navy Federal Credit Union, NBKC Bank, New York Community Bank, Northpointe Bank, Novo, OceanFirst Bank, Old National Bank, ONE Finance, OneUnited Bank, Oxygen, Pacific Western Bank, PNC Bank, Ponce Bank, Popular Direct, Presidential Bank, Prime Alliance Bank, Quontic, Radius, Raisin, Redneck Bank, Regions Bank, Relay, Republic Bank of Chicago, Revolut, Salem Five Bank, Sallie Mae, Santander Bank, SchoolsFirst Federal Credit Union, Simple, SoFi, Synchrony Bank, Tab Bank, TD Bank, Third Federal, Truist Bank, U.S. Bank, UFB, Upgrade, USAA, Valley Bank, Vanguard, Varo Bank, Vio Bank, Wealthfront, Wells Fargo, Western Alliance Bank, and Zeta.
A money market account is a deposit account that shares some checking and savings accounts features, such as a high APY, but with check-writing and debit card access. Many online banks offer this account type. Money market interest rates are typically comparable to those found with savings accounts.
As of June 2024, a good interest rate for a money market account is 4.00% APY or higher (the best is up to 5.30%). This can fluctuate over time and can vary significantly from bank to bank.
Money market accounts work similarly to other types of deposit accounts, particularly savings accounts.
When you deposit money into your money market account, your bank or credit union will pay you interest on the total money in your account, just like high-yield savings accounts.
How often do money market accounts pay interest? Typically, your money market account will pay you interest on the funds in your account monthly, but the interest normally compounds daily. So, the more you contribute, and leave in your account, the more interest you will earn!
Money market accounts can also include options such as debit cards and check-writing capabilities for easy money access, similar to checking accounts, although not all money market accounts offer these features.
Money market accounts pay a higher interest rate than traditional (branch-based) savings accounts, and sometimes even high-yield savings accounts, because of where the banks or credit unions are allowed to invest the money you deposit.
With money market accounts, your financial institution is allowed to invest your money in short-term, highly liquid, low-risk securities like certificates of deposit (CDs), government bonds/securities, commercial paper, or other similar investments.
Then, when those assets it invested in mature (reach their term length for payout), the bank gives a portion of that money back to you, as a money market account holder. This investment strategy is not available to financial institutions if you put your money in just a traditional savings account.
In most cases, you can't lose money with a money market account, unless your bank fails and you have an extremely high balance. And even in this case, you'd be unlikely to lose your money. Money market accounts are treated like regular savings accounts at both banks and credit unions. And like a savings account, a money market account is often insured by the Federal Deposit Insurance Corporation (FDIC) when it's in a bank, and insured by the National Credit Union Administration (NCUA) when it's in a credit union. These cover up to $250,000 per person per bank in case of bank failure.
Typically, the interest you earn on the funds in your money market account compound daily, and are paid out to you monthly. However, not all banks follow this same compounding schedule.
What does compounding interest mean? It means the more money you add, the more money you will earn. Interest can compound yearly, monthly or daily, depending on your account type. So, if you have daily compounding (like most MMA accounts), you will earn more money on your account if you make more frequent deposits, and the higher your balance is in your money market account, the more interest you will earn!
The interest rates on money market accounts are variable. The rate of interest rises and falls over time, impacted by inflation, Federal Reserve interest rate movements, and other variables.
The interest income you earn in a money market account is taxable, and that's true even if you don't withdraw it. Shortly after the end of the calendar year, you can expect to receive a tax document known as a 1099-INT, with a copy sent to the IRS as well.
One way to get around the tax implications is to use an IRA (individual retirement account) to hold your money market funds, but since you can't readily withdraw money from an IRA until you're 59 1/2 years old, this option isn't practical for everyone. After all, the key benefit of using an MMA is a combination of high yield and easy access to your money.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.