Money Market Account Rates Today, January 16, 2025 (Earn up to 4.85% API)

With interest rates starting to drop following the Fed’s latest rate cut, it’s more important than ever to make sure you’re getting a competitive price on your savings. One option you may want to consider is a money market account (MMA).

These accounts are similar to savings accounts – they pay interest on your balance, but may include debit card and/or writing capabilities.

Wondering where to find the highest money market account rates today? Here’s what you need to know.

From a historical perspective, money market account interest is very high. According to the FDIC, the national average interest rate for money market accounts is just 0.66%, but top money market account rates often pay 4% APY or more — similar to the rates offered on high-yield savings accounts.

Check out some of the top MMA rates available today:

Check out 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 verified partners.

Starting in July 2023, the Fed maintained its target range of 5.25%–5.50% for the federal funds rate. However, as inflation cooled and the economy improved, the Fed cut the federal funds rate by 50 basis points in September, and another 25 basis points in November. In December, the Fed made its last rate cut of the year (25bps). The federal funds rate now stands at 4.25%-4.50%.

As a result, the money market value has started to decrease. Further rate cuts are expected in 2025, meaning now may be the last chance for savers to take advantage of today’s high rates.

Read more: Can you lose money in a money market account?

Given that money market account rates are still high, these accounts are an attractive option for savers. However, deciding when is the right time to put money into a money market account depends on your financial goals and the broader economic situation. Here are some key things to consider

• liquid needs; Money market accounts often come with check-writing capabilities or debit card access, so you can easily access your money. If you want to keep your money accessible while getting a good yield, a money market account might be a good fit.

• Savings Goals: If you have short-term savings goals or want to build an emergency fund, a money market account can provide a safe place for your money while offering better returns than most traditional savings accounts.

• risk tolerance; For conservative savers who prefer to avoid the ups and downs of the stock market, money market accounts are attractive because they are backed by FDIC insurance and cannot lose principal. However, if you are saving for a long-term goal, such as retirement, risky investments are necessary to generate high returns that will get you to your savings target.

With interest rates still high, now may be a good time to consider a money market account, especially if you’re looking for safety, liquidity and better returns than traditional savings accounts. Comparing prices from different institutions will help you find the best options available.