Money Market Account Rates Today, January 18, 2025 (Best account offers 4.75% API)

The Federal Reserve has cut its target interest rate three times by 2024, and as a result, deposit rates — including money market account rates — are starting to fall. It’s more important than ever to compare MMA rates and make sure you get the most bang for your buck.

According to the FDIC, the national average money market account rate is 0.66%. This may not seem like much, but consider that three years ago it was only 0.07%, a significant increase in such a short period of time.

This is largely due to the Fed’s monetary policy decisions, which began raising the benchmark rate in March 2022 to combat rising inflation. In fact, the Fed has raised rates 11 times. But finally, by the end of 2024, it will reduce the benchmark rate by three times, and the value of the deposit account will start to decline.

However, some top accounts are currently offering over 4% APY. These rates may not be much higher, so consider opening a money market account to take advantage of today’s higher rates.

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.

The amount of interest you can earn from a money market account is based on the annual percentage rate (APY). This is a measure of your total income after one year, taking into account the base interest rate and how often the interest compounds (a money market account typically compounds interest daily).

Say you put $1,000 in an MMA at 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 original $1,000 deposit plus just $6.62 in interest.

Now let’s say instead you choose a high-yield money market account that offers 5% API. In this case, your balance would increase to $1,051.27 over the same period, which would add $51.27 in interest.

The more you put into a money market account, the more you stand to earn. If we take our money market account with a 5% API but deposit $10,000, your total balance after one year will be $10,512.67, which means you’ll earn $512.67 in interest. .