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Banking
Jenn Jones
Jenn Jones
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“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
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Published 9:42 a.m. UTC April 17, 2024
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Money market accounts (MMAs) offer a middle ground for savers searching for higher interest rates than those typically found offered by traditional savings accounts, while also desiring more account flexibility. MMA rates nudged downward over the last week, according to Curinos data, and are considerably higher than this time last year, thanks to the Fed’s year-long effort to moderate inflation.
| MMA RATES TODAY | ||
|---|---|---|
Deposit level | Average APY | High rate |
$10,000 minimum balance | 0.59% | 5.12% |
Source: Curinos. Average APY date accurate as of April 16, 2024. | ||
Money market account rates
Money market accounts with a $10,000 minimum balance currently offer an average APY of 0.59%, per Curinos data, slightly lower than last week.
The highest rate in the Curinos dataset today sits at 5.12%, so you may be able to find higher rates in your own research.
If you were to invest $10,000 into an MMA with a 5.12% interest rate that compounds daily, you would earn more than $520 in interest over a year, assuming no withdrawals or additional contributions are made.
Money market accounts vs. savings accounts
Money market account rates usually offer higher yields than what you’ll find on savings accounts, especially those offered at brick-and-mortar banks. MMAs often require a higher minimum deposit or balance, but banks and financial institutions typically reward clients for maintaining larger balances with higher rates.
Currently, the average rate on an MMA with a $10,000 minimum balance in Curinos’ dataset stands at 0.59% APY, while the average rate you’ll find on a savings account with a $10,000 balance is a mere 0.24% APY.
Keep in mind that savings accounts are better suited to achieve a particular goal, such as maintaining an emergency fund or amassing a down payment on a home. By placing your funds in a high-yield savings account, you’ll earn interest and you’ll hopefully also be less inclined to spend the money.
What is a money market account?
Think of a money market account as a mixture between a savings and checking account, often offering competitive interest rates and typically requiring a higher minimum balance. You can enjoy the perks of a high-yield savings account while having access to a debit card and check-writing, all with FDIC insurance up to $250,000. Though not designed for everyday spending, these accounts provide some flexibility with limited transactions.
Methodology
To establish average money market account rates, Curinos focused on accounts intended for personal use. Money market accounts that fall into specific categories are excluded, including promotional offers, relationship-based accounts, private, youth, senior and student/minor. The average money market account rates quoted above are based on a $10,000 minimum deposit amount.
Frequently asked questions (FAQs)
Depending on the bank, you might be able to do this online. You’ll need to provide some basic information, such as your name, address, date of birth, Social Security number and phone number. Additionally, you’ll need to supply the account number and routing number of the bank you intend to use for your initial deposit if you’re funding a new money market savings account online.
Once your account is opened and funded, you can manage it just like any other bank account. This includes regularly reviewing your statements or account activity, setting up transaction alerts and linking it to your other bank accounts for seamless transfers.
In some cases, yes. Some banks or credit unions may charge monthly maintenance fees, which can sometimes be waived if you maintain a certain minimum balance.
Others may impose fees for excess transactions, as MMAs are subject to federal regulations limiting the number of certain types of transactions (such as transfers and withdrawals) to six per month. It’s essential to review the account terms and fee structures before opening a money market account to ensure you’re getting the best possible deal for your financial situation.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
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Taylor Tepper is lead editor for banking at USA Today Blueprint and is an award-winning journalist and former senior staff writer at Forbes Advisor, Wirecutter/New York Times and Money magazine. His work has also appeared in Fortune, Time, Bloomberg, Newsweek and NPR. He lives in Dripping Springs, TX with his wife and 3 kids and welcomes bbq tips.
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Jenn Jones is the deputy editor for banking at USA TODAY Blueprint. She brings years of writing and analytical skills to bear, as she was previously a senior writer at LendingTree, a finance manager at World Car dealerships and an editor at Standard & Poor’s Capital IQ. Her work has been featured on MSN, F&I Magazine and Automotive News. She holds a B.S. in commerce from the University of Virginia.
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