Federal reserves reduced the target interest rate three times in 2024, as a result, deposit rates – including money rates – began to fall. It is more important than ever to compare the MMA -e rates before making money as much as possible on balance.
AND National rate on the money market According to the FDIC, it is 0.64%. This may not seem much, but consider that three years ago it was only 0.07%, which reflected a sudden increase in a short time.
This is a large extent because of the decisions on the Fed monetary policy, which in March 2022 began to increase the rate of federal resources to combat inflation corrupt. In fact, the Fed has increased the rates 11 times. But finally reduced his reference rate three times at the end of 2024, causing the deposit account to start falling
Despite this, some of the best accounts currently offer over 4% APY. Since these rates may not be much longer, consider opening an account of money you now use today’s high rates.
Here are some of the highest MMA rates available today:
View our choices for the 10 best money accounts on the market today >>
In addition, the table below contains some of the best rates on the savings and monetary markets that are available today from our proven partners.
The amount of interest you can earn in the money account depends on the market Annual percentage rate (Apy). This is a measure of your total earnings after one year when the basic interest rate and often interest joints are considered (interest rates in the money market usually agree daily).
Let’s say you put $ 1,000 in MMA at an average interest rate of 0.64% with daily assembly. At the end of one year, your Saldo would rise to $ 1,006.42 – your starting deposit of $ 1,000, plus only $ 6.42.
Let’s say you select a high -yield account that offers 4% apy instead. In this case, your balance would rise to $ 1,040.81 during the same period, including $ 40.81 interest.
The more you deposit the money on the money market, the more you are making money. If we took the same example of money account at 4% APY, but we deposit $ 10,000, your total balance would be $ 10,408.08 after one year, which means you would earn $ 408.08.
