The Federal Reserve has cut its target interest rate three times in 2024. As a result, deposit rates – including money market rates – have started to fall. It’s more important than ever to compare MMA rates and make sure you’re getting the most you can on your balance.
The national average money market calculation rate is 0.66%, according to the FDIC. 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 combat soaring inflation. In fact, the Fed has raised rates 11 times. But it finally cut its benchmark rate three times in late 2024, causing rates on deposit accounts to start falling
Even so, some of the best accounts currently offer more than 5% 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 best MMA rates available today:
Check out our picks for the top 10 money market accounts available>>
In addition, the table below shows some of the best savings rates and money accounts 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 taking into account the base interest rate and how often interest is charged (money market account interest is usually charged daily).
Let’s say you put $1,000 into MMA at an average interest rate of 0.66% compounded daily. At the end of one year, your balance will grow to $1,006.62 — the initial $1,000 deposit, plus just $6.62 in interest.
Now let’s say you choose a high-yield money market account that offers 5% APY instead. In that case, your balance would grow to $1,051.27 over the same period, which includes $51.27 in interest.
The more you deposit into a money market account, the more you will earn. If we take our same money market account example with 5% APY, but deposit $10,000, your total balance after one year will be $10,512.67, which means you would earn $512.67 in interest.
