Money Market Accounts

A money market account (MMA) has a unique set of features that makes it a hybrid of a savings account and a checking account. Money market accounts offer high interest rates, and also easy access to your money.

The money market accounts listed in the table below are sorted according to rates, from highest to lowest. This table lets you compare money market accounts from banks and credit unions — use the filter box to customize your results. Read on to learn more about the history, distinct features and benefits of these accounts.

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Redneck BankMega Money Market Account22 Reviews
2.25%*
-$50k$562
State Bank of India (IL)Money Market Deposit - US Based Consumer 3 Reviews
2.25%
--$562
Customers BankAscent Money Market - Online Only26 Reviews
2.25%
$25k-$562
MECUMoney Market Special - New Money3 Reviews
2.25%*
$10k$1m$562
Prime Alliance BankPersonal Money Market2 Reviews
2.22%*
$10k-$555
Sun East FCUMax-Yield Money Market Account Promotional - New Money (13 Month Intro Rate)6 Reviews
2.20%
$5k$250k$550
Virtual BankeMoney Market Special28 Reviews
2.15%
$100-$538
Quontic BankPersonal Money Market5 Reviews
2.10%*
$5k-$525
Western State BankHigh Yield Money Market1 Review
2.10%*
--$525
earn.bankMoney Market Account2 Reviews
2.05%
--$512
Pacific National BankMMDA Online Special (New Money Only)3 Reviews
2.05%
$5k-$512
Northpointe BankUltimate Money Market - Promo38 Reviews
2.05%*
$25k$1m$512
Bank7High Rate Online Money Market5 Reviews
2.01%
-$1m$502
BankUnitedDirectOnline Money Market
2.00%
-$250k$500
MemoryBankOnline Money Market Account32 Reviews
2.00%*
-$1m$500
Bay State Savings BankSmile Worcester County Consumer Money Market4 Reviews
2.00%
--$500
My eBancSuper Saver Money Market Account14 Reviews
2.00%*
--$500
UFB DirectUFB Premium Money Market - New Money58 Reviews
2.00%*
$25k-$500
TIAA BankYield Pledge Money Market - 1st Year Intro Rate21 Reviews
2.00%*
-$250k$500
First Internet BankMoney Market Savings20 Reviews
1.92%
--$480
CNB Bank DirectPremium Money Market1 Review
1.91%
$25k$2m$478
iGObankingiGOmoneymarket - New Money Only36 Reviews
1.90%*
$25k$500k$475
MapleMark BankPlatinum Money Market3 Reviews
1.90%*
$25k-$475
BankPurelyPurelyMoneyMarket - New Money
1.90%*
$25k$500k$475
1.85%
--$463
CIT BankMoney Market Account299 Reviews
1.85%
$100-$463
ableBankingPersonal Money Market11 Reviews
1.85%
--$463
EBSB DirectMoney Market Special 312 Reviews
1.80%*
$10k$2m$450
M.Y. Safra BankHigh Yield Money Market6 Reviews
1.75%*
$5k$1m$438
Spectrum Credit UnionMarketEdge Savings
1.75%*
$2.5k-$438
North American Savings BankMoney Market Special (Online-Only)8 Reviews
1.71%*
$25k$1.5m$428
1.70%*
$1k$1m$425
Digital FCU (DCU)Money Market Account39 Reviews
1.66%*
$25k-$415
nbkc bankPersonal Money Market Savings3 Reviews
1.66%*
-$1m$415
1.65%*
--$412
Bethpage FCUMoney Market Account9 Reviews
1.60%*
$500-$400
1.55%*
$10k-$388

Displaying 1-40 of 185 Results


Money Market Account Rate History – Average APY (%) Rate Trend over Time

What is a money market account?

Money market accounts fall under the purview of the Federal Reserve’s Regulation D (Reg D), which considers them to be savings accounts. This is why money market accounts have the same transfer and withdrawal limitations as savings accounts, and are limited to six “convenient” transfers and withdrawals per month. This includes pre-authorized, automatic transfers; transfers and withdrawals initiated by telephone or computer; and transfers made by check, debit card or other similar method. Under Reg D, in-person withdrawals or transfers at a bank branch, at an ATM, or by mail or phone do not count toward the six-per-month limit.

How money market accounts work

While they may be classified as savings accounts by Regulation D, money market accounts typically work a little differently. Depending on the issuing institution, many MMAs come with a debit card or an ATM card, or even check writing abilities. This gives you more convenient access to your funds. Just don’t forget that despite these extra options, you’re still limited up to six convenient transfers and withdrawals per month.

Money market accounts earn interest. Historically, they were the go-to when people were looking for the highest savings rates available. In today’s unsettled rate environment, this isn’t exactly true, although in some cases there are banks and credit unions with money market accounts that offer higher rates than their savings account options.

Money market account benefits

Savers choose money market accounts because of their liquidity and flexibility. Although MMAs permit ATM withdrawals and check writing, technically they are not transactional accounts like a checking account. Nevertheless, money market accounts can be a great place to store funds for medium-term goals and needs. Place extra money in a high-yield MMA to snag the great rate, and you can also access the funds for occasional purchases — like buying furniture, for example. MMAs also work if you want to use it as a true emergency fund, strictly for unexpected expenses. You could also choose to deposit money regularly into the account and use it to pay rent, letting the money grow undisturbed at its great rate for the rest of the month.

Financial institutions usually tier their money market account rates. This rewards depositors with higher interest rates when they increase their balances. That doesn’t mean that all money market accounts disqualify low balances from a competitive rate, though. There are several online banks with MMAs with zero or low minimum balance requirements.

How your money is protected in a money market account

Your money market account funds are protected by FDIC insurance, as long as you open an account with an FDIC member bank. This is easy enough to check either on the bank’s website or with the FDIC’s own BankFind tool.

FDIC insurance protects your money in a bank account up to the legal limit per depositor per institution per ownership category. So if you have $250,000 in a money market account at ABC Bank, that’s totally insured through the FDIC. Anything above that won’t be though, so if you have cash in excess of $250,000, consider moving your money around between different banks to ensure you are fully insured.

FDIC insurance doesn’t extend to credit unions. Instead, federally chartered credit unions receive deposit insurance via the National Credit Union Administration (NCUA) and its National Credit Union Share Insurance Fund. This fund provides up to the legal limit in insurance coverage. State-chartered credit unions can also opt into NCUA insurance, but typically are regulated by the state supervisory authority where the credit union's main office is located.

The immediate technological protections on your account largely depend on the exact precautions put in place by individual institutions. This typically includes firewalls, encryption, two-step authentication, fraud monitoring, virus detection and the like. Institutions generally have pages on their websites detailing their security measures.

Fees to consider with money market accounts

Money market accounts often charge monthly service fees in exchange for higher rates. These fees depend on the issuing institution. If there is a fee, you may be able to waive it by maintaining a minimum balance, which can be quite high.

Be on the lookout for other, easily avoidable fees, especially if you sign-up for paper statements. Most deposit accounts nowadays waive a monthly fee if you sign up for electronic statements (eStatements), while paper statements can cost you a few dollars extra. We’ve even seen a $25 fee for paper statements, which is less than ideal.

Despite the ease of access provided by checks and debit/ATM cards, money market accounts are still limited up to six outgoing transactions according to Regulation D. If you exceed that limit, you’ll face an excessive transaction fee, often $5 or $10. Avoid these fees simply by paying attention to the number of your transactions each month.

How to choose the best money market account

The best starting point for choosing a money market account is to look for the highest rate. You want your money to grow as rapidly as possible for maximum savings — the highest rate will do that for you. Just be sure to cross-check the best money market account rates with the best savings account rates, as you might find a better deal among savings accounts.

You may want to choose a money market account over a savings account when you need better access to your funds. In this case, always make sure you check to see whether your desired money market account actually gives you a debit card or check writing privileges. Not every bank and credit union offers these features with their money market accounts, which means they’re basically no different from a regular savings account.

Another thing to look out for are fees. There’s often a monthly fee on money market accounts, usually waived with a high balance requirement. You never want monthly fees to inhibit your savings, so figure out whether you can maintain the balance required to waive the monthly fee. If an account you’re looking at charges a fee and offers no option to waive it, you should consider a different account.

How interest is calculated on money market accounts

The interest earned on money market accounts is calculated the same way as with other deposit accounts. The interest rate is the yield your money earns in one year, while the annual percentage yield (APY) indicates your yield over one year taking compounding into account.

Depending on the institution, your interest could be compounded daily, monthly, quarterly or even semi-annually. Typically, you’ll want to find a daily compounding account, as that grows your money the most efficiently.

Let’s say, for example, you deposit $10,000 into a new 2.25% APY money market account that compounds interest daily. If you don’t make any additional deposits or withdrawals, you’ll have earned $227.54 in interest on the account after one year. If we kept everything the same, but changed the compounding frequency to monthly, you’d earn $227.33 in interest. Change that to semi-annually and your interest drops to just over $226. These aren’t drastic changes, but a little more earned interest can go a long way.

Is interest earned from money market accounts taxable?

Any interest you earn on deposit accounts must be reported to the IRS. If you earn more than $10 in interest in a year, your institution will send both you and the IRS a 1099-INT form detailing your interest earned. You’ll need to file that with your tax return. If you’ve earned more than $1,500 in interest, you’ll also need to detail all the sources of that income on Schedule B of the 1040.

Your interest is taxed according to your marginal tax rate. So if you earned $100 in interest and your tax rate is 22%, you’d pay $22 in taxes on your earned interest.

You shouldn’t let that deter you from boosting your interest rates though. Earning $100 in interest and paying $22 in taxes still results in $78 more in your pocket. That’s a lot better than nothing.

Money market account vs. savings account

MMAs and savings accounts are very similar and are used for many of the same purposes. However, money market account rates derive their value from trading activity performed in the financial markets, whereas savings accounts normally pay interest rates based on the institution’s lending activities.

The difference means that the highest money market rates are typically higher than the highest savings account rates when interest rates in the broader financial markets are higher. For this reason, MMAs usually have higher minimum balance requirements than savings accounts.

Money market accounts may also offer easier access to your funds in case of emergency, such as an unexpected medical bill or a car repair. If the account includes a debit or ATM card, you’ll have an easier time withdrawing money or making a payment in a pinch, whereas savings accounts don’t offer that convenience.

Money market account vs. checking account

Money market accounts can resemble checking accounts thanks to their check writing availabilities and debit/ATM cards. Plus, they’ll earn at higher interest rates than a typical checking account.

Just don’t rely on a money market account to replace your checking account for daily purchases. MMAs are still limited by Reg D up to six transfers and withdrawals per statement cycle.

While both checking and money market accounts charge fees more often than savings accounts, remember that to waive a money market account’s fees you generally need a higher balance.

Money market account vs. money market fund

Money market funds are not the same thing as money market accounts. A money market fund (or money market mutual fund) invests in assets like commercial paper or government debt. Because you’re placing your money in risk investments, which fluctuate in value, there is always the possibility that you could lose money. There is never a risk you would lose your money in money market deposit accounts, so long as you maintain accounts below FDIC or NCUA insurance thresholds. Of course, money market funds also offer the potential to see higher returns than a typical deposit account.

Money market funds charge commissions for the funds you maintain and trade, which can take a chunk out of any income you see, especially if you have a low starting balance. Money market funds also offer the advantage of high liquidity and flexibility, especially when compared to other investment vehicles. Most money market funds allow you to write checks or make ATM withdrawals from your account balance, similar to money market deposit accounts.

Some banks and institutions offer both money market deposit accounts and money market funds, so it’s important to do some research into the differences before depositing your money. It may also help to double check the name and features of any “money market” account you’re about to open.




* The APY (Annual Percentage Yield) shown is based on the deposit amount selected. Expand the listing to see APYs for other deposit amounts.
† The rates for some products vary by region. In these cases we have listed the rates for the region closest to the bank's headquarters.

The financial institution, product, and APY (Annual Percentage Yield) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your region. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. The content displayed is for general information purposes only; always verify account details and availability with the financial institution before opening an account. Contact [email protected] to report inaccurate info or to request offers be included in this website. We are not affiliated with the financial institutions included in this website.