Money Market Account Rates Today, January 17, 2024 (up to 4.85% APY return)

The Federal Reserve has cut the federal funds rate three times through 2024 for a total of one percentage point reduction. As a result, interest rates on deposits – including money market account rates – have been falling.

It’s more important than ever to compare MMA rates and make sure you get the most bang for your buck.

Although money market account rates are high by historical levels, the national average rate of MMAs is only 0.66 percent, according to the FDIC. The good news: High-yield money market accounts offer more than 5% APY — more than seven times the national average.

This is why it is important to trade before opening a money market account. Interest rates vary widely, but there are many banks (especially online banks) and credit unions with highly competitive offers.

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.

Online banks work only on the web. This significantly reduces their overhead costs, so they can pass those savings on to customers through higher deposit rates and lower fees. If you’re looking for the best money market account rates, online banks are a great place to start.

That said, online banks aren’t the only ones offering savings accounts with 4% to 5% APY. Credit unions are not-for-profit financial cooperatives, and they are known for offering competitive rates and low fees. Many credit unions have certain requirements that must be met to become a member, although there are some that allow anyone to join.

Read more: Are Online Banks Really Safe?

Money market accounts can be a good option for short-term savings goals, such as building an emergency fund or setting aside money for an upcoming expense. They generally offer higher interest rates than regular savings accounts, and offer easier access to your money compared to other options like certificates of deposit (CDs).

Money market accounts are also low risk, and are guaranteed by the FDIC up to a standard $250,000 per deposit, per institution. This makes them safer than money market funds, which can be exposed to market risk.

However, keep in mind that many money market accounts require a minimum balance in order to open the account and earn a higher ad rate. If you fail to maintain this balance, you may incur fees or miss out on the best rates.

And while you can generally access your funds as needed, MMAs may limit the number of transactions you can make each month. If you want to get your money back over and over again, this should be taken into account.

Read more: Is there a penalty for withdrawing from your money market account?

When money market accounting makes sense:

• You want to earn more interest than a regular savings account without locking up your money in a CD.

• You can maintain the minimum balance to avoid fees.

• You want to have funds easily accessible for emergencies or temporary expenses.