Money market accounts (MMAs) can be a great place to store your cash if you’re looking for a relatively high interest rate along with liquidity and flexibility. Unlike traditional savings accounts, MMAs typically offer better returns, and they may also provide check-writing privileges and debit card access. This makes these accounts ideal for holding long-term savings that you want to grow over time, but can still access when needed for certain purchases or bills.
Find out which banks have the best MMA rates today.
The national average interest rate for money market accounts is just 0.39%, according to the FDIC. However, the best money market account rates often pay above 4% APY — similar to the rates offered on high-yield savings accounts.
Here is a look at today’s highest money market account rates:
Money market account rates have fluctuated significantly in recent years, largely due to changes in the Federal Reserve’s target interest rate, known as the federal funds rate.
In the wake of the 2008 financial crisis, for example, interest rates were kept extremely low to stimulate the economy. The Fed slashed the federal funds rate to near zero, which led to very low MMA rates. During this time, money market account rates were typically around 0.10% to 0.50%, with many accounts offering rates on the lower end of that range.
Eventually, the Fed began raising interest rates gradually as the economy improved. This led to higher yields on savings products, including MMAs. However, in 2020, the COVID-19 pandemic led to a brief but sharp recession, and the Fed once again cut its benchmark rate to near zero to combat the economic fallout. This resulted in a sharp decline in MMA rates.
But starting in 2022, the Fed embarked on a series of aggressive interest rate hikes to combat inflation. This led to historically high deposit rates across the board. By late 2023, money market account rates had risen substantially, with many accounts offering 4.00% or higher.
Throughout 2024, MMA interest rates remained elevated, and it was possible to find accounts that paid well above 5% APY.
Today, rates remain high by historical standards, though they’ve been steadily trending downward following the Fed’s cuts in late 2024 and its three rate cuts in 2025. Today, online banks and credit unions tend to offer the highest rates.
When comparing money market accounts, it’s important to look beyond just the interest rate. Other factors, such as minimum balance requirements, fees, and withdrawal limits, can impact the total value you get from the account.
For example, it’s common for money market accounts to require a large minimum balance in order to earn the highest advertised rate — as much as $5,000 or more in some cases. Other accounts may charge monthly maintenance fees that can eat into your interest earnings.
However, there are several MMAs available that offer competitive rates without any balance requirements, fees, or other restrictions. That’s why it’s important to shop around and compare accounts before making a decision.
Additionally, ensure that the account you choose is insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA), which guarantees deposits up to $250,000 per institution, per depositor. Most money market accounts are federally insured, but it’s important to double-check in the rare case the financial institution fails.
Read more: Are money market accounts safe?
Today, money market account rates are still quite high by historical standards. The best accounts provide over 4% APY, with the highest rate available today at 4.01% APY.
The amount $10,000 will earn in a money market account depends on the annual percentage yield (APY) offered by the account, as well as how long you keep your money in the account. Let’s say you choose to deposit $10,000 in a money market account that earns 4% APY with monthly compounding interest. After one year, you would earn $407.44 in interest, for a total balance of $10,407.44.
Money market accounts are generally safe and flexible savings options, but like any other financial product, they come with some downsides, too.
For instance, some MMAs require a high minimum balance to open the account or to earn the advertised APY. Failing to maintain that minimum balance can result in penalties or reduced interest rates. Additionally, money market rates are variable, which means they can change at any time at the bank’s discretions. If interest rates drop, so will your account APY, which can make future earnings unpredictable compared to fixed-rate products like CDs.
