Find out how much you could earn with today’s money market account rates. Deposit interest rates (including money market account rates) have been falling over the past year. That's why it’s more important than ever to compare MMA rates and ensure you earn as much as possible on your balance.

The national average money market account rate stands at 0.59%, according to the FDIC. This might not seem like much, but consider that three years ago, it was just 0.07%. So by historical standards, money market account rates are still quite high.

Even so, some of the top accounts are currently offering over 4% APY. Since these rates may not be around much longer, consider opening a money market account now to take advantage of today’s high rates.

Here’s a look at some of the top MMA rates available today:

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Additionally, the table below features 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 depends on the annual percentage rate (APY). This is a measure of your total earnings after one year when considering the base interest rate and how often interest compounds (money market account interest typically compounds daily).

Say you put $10,000 in an MMA at the average interest rate of 0.59% with daily compounding. At the end of one year, your balance would grow to $10,059.17 — your initial $10,000 deposit, plus $59.17 in interest.

Now let’s say you choose a high-yield money market account that offers 4% APY instead. In this case, your balance would grow to $10,408.08 over the same period, which includes $408.08 in interest.

Compared to a traditional savings account, a money market account may come with more restrictions. For example, money market accounts often require a higher minimum balance in order to earn the best interest rate and/or avoid fees. Certain MMAs may also limit the number of withdrawals you can make per month (typically six).

In general, there are no banks that offer a 7% interest rate on money market accounts or any other type of deposit account. That said, you may be able to find local banks and credit unions running limited-time promotional rates on certain accounts, which could be as high as 7%. However, promotional rates at this level often apply to a limited balance.

Read more: Do 7% interest savings accounts exist anymore?

If you’re frustrated with the anemic returns that come with traditional savings accounts, the idea of earning a higher return can be appealing. Many banks and credit unions advertise money market accounts that provide higher annual percentage yields (APYs), but they’re an often misunderstood product.

There's a lot of confusion around if a money market account is a savings account. Although money market accounts share several characteristics with savings accounts, there are some key differences you should be aware of before opening an account.

A money market account is another type of deposit account. They are interest-bearing accounts, and often include check-writing privileges. You may be able to make withdrawals with a debit card at an ATM.

Like savings accounts, money market accounts have restrictions on how often you can make withdrawals or transfers; you can usually make no more than six per month.

Money market accounts usually provide higher APYs than savings accounts, so using a money market account could help your money grow faster.

As a type of deposit account, money market accounts are also backed by the FDIC and NCUA up to $250,000.

A savings account is a type of account you can open with a bank or credit union. You can use savings accounts to set aside money for a rainy day or to save for a future goal, like a down payment on a dream house.

By stashing money in a savings account, you can earn interest, and your money can grow over time. The trade-off is that you are limited in how many times you can access your account; typically, banks limit you to six monthly withdrawals or transfers.

That restriction means a savings account isn’t a good option for paying bills or covering routine expenses, and you don’t have access to a debit card for ATM withdrawals. Instead, a savings account is meant to be used sparingly so you can save for your goals.

Savings accounts are protected by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA), so deposits are insured up to $250,000.

At first, money market accounts can seem interchangeable with savings accounts. But there are some crucial differences you should consider:

Interest rates: Generally, money market accounts have higher APYs than traditional savings accounts. As of June 13, 2023 – the last available data – the average APY for savings accounts was 0.40%. For money market accounts, the average APY was 0.59%. Over time, the higher rate on money market accounts could help grow your money faster.

Minimum deposit and balance requirements: Although minimum deposit and balance requirements vary by bank or credit union, money market accounts usually have higher minimums than savings accounts. You can often find savings accounts with $0 minimums, but money market accounts can have minimums as high as $2,500.

Liquidity and accessibility: Banks usually limit customers to six monthly withdrawals and transfers on both savings and money market accounts. However, accessing your money is often easier with a money market account. Money market accounts allow you to write checks or withdraw money with a debit card, whereas you can only get money out of a savings account by transferring it to another account or by visiting a bank in person and withdrawing it through a teller.

Fees: When it comes to account fees or monthly maintenance fees, money market accounts tend to be more expensive than savings accounts. Savings accounts usually have low or no fees at all, or you may qualify for a fee waiver if you maintain a certain balance. By contrast, money market accounts usually charge between $5 and $25 per month.

Now that you know the differences between money market accounts and savings accounts, you can decide which account type is best for you. If you’re not sure, consider these scenarios:

With some money market accounts, you need hundreds or even thousands of dollars available to open an account. Meeting minimum deposit requirements can be challenging for young adults or new savers.

When you want to open a new account quickly but don’t have much cash available, a savings account with low or no minimums may be better than a money market account.

Read more: How much money should you keep in a savings account?

Money market accounts typically have much higher APYs than savings accounts, so they can make sense for people that want to maximize their savings. Particularly if you have a substantial amount of money to tuck away — such as $25,000 or more — and can qualify for the highest-advertised APYs on money market accounts, your money can grow much faster than if you opted for a savings account.

When you are starting to build an emergency savings fund or save for other goals, seeing monthly fees chip away at your interest can be frustrating. For those that want to keep fees to a minimum, a savings account is usually a better option than a money market account; you can find many banks and credit unions that offer savings accounts with no monthly fees.

If you want to be able to quickly and easily access your savings in a bind, a money market account likely makes more sense than a savings account. With a money market account, you can take out money by visiting an ATM or by writing a check, whereas savings accounts are more limited.

Now that you know that money market accounts are different from savings accounts, you can decide whether money market accounts have a role in your financial plan.

Money market accounts tend to have higher APYs and are more accessible than savings accounts. But on the other hand, they usually have higher deposit minimums and monthly fees.

Which account type makes the most sense depends on your finances and future goals for the money you save. Whatever account type you choose, shop around before choosing a bank or credit union; APYs, account minimums, and monthly fees vary significantly between financial institutions, so taking the time to find the highest APY with the lowest fee can pay off.

When you’re planning for a major goal — such as buying your dream house or planning the ultimate vacation in Turks and Caicos — making your money work harder for you is essential. But investing in the stock market may be too risky if you need the money within a few years. Other options like money market accounts and certificates of deposit (CDs) can be attractive because they minimize risk while providing higher yields than what you’d get with a traditional savings account.

Both money market accounts and CDs boast higher annual percentage yields (APYs) — how much interest the account will earn in one year — and are backed by federal protections, but are very different accounts. When considering CDs vs. money market accounts, understanding how they differ in terms of deposit requirements and fees is key.

Money market accounts are similar to savings accounts, meaning they’re deposit accounts you can continually add to as you save for your goals.

Deposits are secured up to a maximum of $250,000 through the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA), so money market accounts are useful options for those that want a secure place to build their emergency fund or save for a down payment for a house.

Generally, money market accounts pay higher APYs than traditional savings accounts, and some online banks offer even higher APYs — some have money market accounts with APYs that are 10 times the national average for savings accounts.

Unlike savings accounts, money market accounts are much more accessible. Money market accounts give you check-writing privileges and issue you a debit card, so you can withdraw money from the account by writing a check to pay a bill or by using your debit card at an ATM.

However, there are usually limits on how many withdrawals or transfers you make per month. Although the Federal Reserve removed withdrawal limits, some banks and credit unions still limit customers to six monthly transfers. The bank or credit union may charge you added fees if you exceed that number.

A certificate of deposit is another tool you can use to grow your money. CDs are more restrictive than money market accounts, which allow you to add and withdraw money. You open a CD with a fixed sum of cash and you leave it in the account for a specific period of time.

Like money market accounts and savings accounts, CDs are backed by the FDIC or NCUA, so your deposits are protected up to a maximum of $250,000.

During the time your money is in the CD, it earns a fixed rate of interest. CDs generally have higher rates than either traditional savings or money market accounts. And some banks offer substantially higher rates. In 2023, it’s not uncommon to find CDs with rates over 5.00%.

The trade-off for the higher rate is that you sacrifice liquidity. You cannot withdraw money from the CD until it reaches its maturity date. If you need to take out money early, you will have to pay penalties, such as forfeiting several months of interest.

Because money in CDs is harder to access, CDs are a good place for stashing cash that you don’t need to cover everyday or unexpected expenses; they can be a valuable option to grow your money when you’ve already established an emergency fund.

Money market accounts and CDs are good ways to earn a higher APY than you’d get with a typical savings account, but they differ in several crucial ways:

Annual percentage yield (APY): Generally, you can get a higher APY with a CD than with a money market account. Depending on the term and the amount of cash you put into the CD, you could qualify for an APY that is 10 times the national average for money market accounts or better.

Rate type: CDs have fixed rates, meaning the interest rate stays the same for the duration of the CD’s term. With a money market account, rates are variable and can fluctuate over time.

Deposits: Both money market accounts and CDs usually have minimum deposit requirements, but CDs tend to require more money upfront than money market accounts. For example, you may need at least $2,500 to open a CD.

Fees: CDs rarely have monthly fees, but account fees are much more common with money market accounts. Fees vary by bank or credit union but often range from $5 to $25 per month.

Accessibility: When it comes to accessibility, money market accounts have the edge over CDs. With a CD, you cannot access the money in the account until its maturity date; otherwise, you’ll have to pay penalties. With a money market account, you can readily withdraw or transfer money — up to your financial institution's monthly limits — via check or debit card.

Savings: If you’re saving for a particular goal, you likely want to add to your account. For example, if you’re trying to save up to put 20% down on a house, you might set up automatic transfers to move money over from every paycheck. That’s possible with a money market account, but with a CD, you usually can’t add money to the account (the exception is add-on CDs).

Both money market accounts and CDs can play important roles in your financial planning, but which account is better for you depends on your goals and current circumstances. If you aren’t sure which account type to choose, consider these scenarios:

With a CD, you often need a substantial amount of money to open an account, such as $2,500 or more. Although money market accounts usually have deposit minimums, they are usually lower than the requirements for CDs; you can open a money market account with as little as $100, so they’re better for new savers.

CDs typically have higher APYs than other accounts, including money market accounts. You can earn significantly higher APYs and grow your money faster. When your focus is on growing your money as fast and as much as possible, a CD wins over money market accounts.

With a CD, you can earn a high APY, but you can’t touch the money in the CD until its maturity date without incurring penalties. By contrast, you can withdraw money from a money market account at any time without penalty if you don’t make more monthly withdrawals than your bank allows.

Because they’re more accessible, money market accounts are better for savings you may need to tap into in an emergency, such as withdrawing cash to cover an unexpected car repair or a broken appliance. Learn more: How much money should I have in an emergency savings account?

Although some money market accounts have higher-than-average APYs, their rates are variable. As economic conditions change, the rates can fluctuate, so the rate you earn on a money market account may be significantly lower a year from now.

CDs work differently. When you open a CD, the rate is fixed for the length of the CD’s term, so you don’t have to worry about the rate decreasing over time. CDs are the better choice for those who want to earn a reliable rate of interest and are willing to sacrifice liquidity.

Whether you’re saving for an incredible honeymoon or want to build your emergency savings, money market accounts and CDs allow your money to grow, thanks to higher APYs. Which account type is better for you depends on how much money you have on hand and how often you need to access your cash.

Both options have their advantages and drawbacks, but whatever account you choose, do some homework and research options from multiple banks and credit unions. Account minimums, APYs, fees, and other restrictions can vary significantly between banks, so you may be able to find a higher APY with fewer fees by shopping around.

If you want to earn more interest on your savings but keep the same level of protection that a checking or savings account offers, consider moving your deposits to a money market account (MMA).

These deposit accounts (not to be confused with money market funds) are offered by banks and credit unions, which means they're usually insured by the Federal Deposit Insurance Corp. (FDIC) or the National Credit Union Administration (NCUA) up to $250,000 per depositor, per institution.

Read more: Money market account vs. money market fund

FDIC insurance protects you from losing the funds in your deposit accounts — including money market accounts — if your bank fails. This insurance covers up to $250,000 of your principal deposits and accrued interest in each account category at any given bank.

It's possible to have more than $250,000 in insured money market account deposits per bank if you spread the funds across multiple account ownership categories. For example, you'll have a total of $750,000 worth of coverage if you place $250,000 each into an individual account, a joint account, and a trust.

If your bank does fail — like First Republic Bank and Silicon Valley Bank both did in 2023 — the FDIC will intervene to protect your deposits in one of two ways:

Bank sale: Arrange for a healthy bank to buy your bank and take over management of your account(s).

Direct payment: Pay you by check, up to the insured limit on each account, typically within two business days of the failure.

For balances above the covered amount, you may not get the money back. If the bank fails, you'll receive a claim against the estate of the closed bank and a Receiver's Certificate as proof of the claim. After the insured deposits are reimbursed, you might get payment for your uninsured deposits as the bank's assets are liquidated over the following years.

Credit unions also offer insurance on MMAs and other deposit accounts, but the coverage is provided by the National Credit Union Share Insurance Fund, which is administered by the NCUA.

Like FDIC insurance, NCUA insurance covers your MMA deposits up to $250,000 per account category if the credit union fails. These are the other ways FDIC and NCUA insurance are similar:

Insurance covers your principal and accrued interest.

If the credit union fails, it will be purchased by another credit union or you'll receive a check for your insured balance.

Checks are typically issued within a few business days of failure.

For MMA balances that aren't insured by the credit union, it could take months or years to get the money back while the credit union's assets are liquidated, and you may receive some or all of your deposit amount that wasn't covered. The good news is that no credit union member has ever lost a single penny of insured savings.

You can talk to your bank or credit union to confirm that your MMA is insured. If you want further confirmation — perhaps because you're vetting a new financial institution — you can use these tools to look up each account:

Bank accounts: Use the FDIC's Electronic Deposit Insurance Estimator or call 877-275-3342 (877-ASK-FDIC).

Credit union accounts: Use the NCUA's Share Insurance Estimator.

FDIC insurance does not cover MMAs against all losses. However, your bank likely has other coverage and protections for special circumstances that could affect your deposits, including:

Banker's blanket bond: Covers bank funds that are stolen or lost due to fire, flood, earthquake, or embezzlement.

Electronic Funds Transfer Act: Allows you to dispute incorrect or unauthorized electronic transactions, such as ATM withdrawals and debit card purchases. Your liability is limited to $50 if you report an incident of fraud within two days.

It's possible to have more than $250,000 of your cash deposits covered by insurance. If you want to deposit larger amounts, the key is to spread the money around strategically. Here are some ways to do that:

Deposit the funds across multiple account categories, such as single and jointly held money market accounts.

Open MMAs at multiple banks or credit unions.

Use free services such as MaxSafe or Impacts Deposit Corp, which spread your deposits across multiple banks to get you more insurance.

Open an MMA at a bank that belongs to the Depositors Insurance Fund, since these banks insure unlimited deposits.

Keep in mind that MMAs aren't the best place to deposit large sums of money since you can earn higher interest rates on other types of deposit accounts. For funds that will be deposited for a year or more, consider other FDIC-insured accounts, such as a certificate of deposit. To earn even bigger returns, you may want to invest some of the money in a mutual fund or retirement account.