The Federal Reserve cut its interest rate target three times in 2024, and as a result, deposit rates – including money market rates – began to fall. It’s more important than ever to compare MMA rates and make sure you’re earning as much as possible on balance.
AND National money market rate According to the FDIC, it is 0.64%. That may not seem like much, but consider that three years ago it was just 0.07%, reflecting a sharp increase in a short period of time.
This is largely due to the Fed’s monetary policy decisions, which began raising its benchmark rate in March 2022 to fight inflation. In fact, the Fed has raised rates 11 times. But it finally cut its benchmark rate three times in late 2024, causing deposit account rates to start falling
Even so, some of the best accounts currently offer over 4% APY. Since these rates may not be around much longer, consider opening a cash account now to take advantage of today’s high rates.
Here are some of the highest MMA rates available today:
Check out our picks for the 10 best money accounts on the market today >>
Additionally, the table below contains some of the best savings and money market account rates available today from our trusted partners.
The amount of interest you can earn on a money market account depends on Annual percentage rate (Apy). This is a measure of your total earnings after one year when the base interest rate and often compound interest are considered (money market interest is usually compounded daily).
Let’s say you put $1,000 into MMA at an average interest rate of 0.64% with daily compounding. At the end of one year, your balance would grow to $1,006.42 – your initial deposit of $1,000, plus just $6.42 in interest.
Let’s say you choose a high cash yield account that offers 4% APY instead. In this case, your balance would increase to $1,040.81 over the same period, which includes $40.81 in interest.
The more you deposit in a money market account, the more you stand to earn. If we took the same money account example at 4% APY but deposited $10,000, your total balance after one year would be $10,408.08, meaning you would earn $408.08 in interest.
