Martinns/GettyImages, Illustration: Hunter Newton/Bankrate
A money market account is a type of savings account that offers check-writing privileges and a debit card to access your deposits at ATMs. Savings accounts typically don’t allow you to write checks from the account, making a money market account a unique option for storing money and withdrawing it when you need it.
The Federal Reserve directly influences money market account interest rates at competing banks. Increases in Federal Deposit Insurance Corporation (FDIC) bank rates generally track the Federal Reserve. However, an increase in the Federal Reserve rate is not a guarantee that banks will raise their interest rates.
So, you need to compare interest rates to find the right account for your financial needs.
Besides the yield, you should also check whether the money market account has the features you are looking for. Check-writing privileges, ATM access, mobile check deposit, and highly rated apps are some of the features people look for.
Aside from the possibility of writing checks, money market accounts and high-yield savings accounts are largely similar, so when searching for a money market account, it’s worth considering opening a high-yield savings account as well.
You might get rewarded for putting more money in a money market account.
Some money market accounts offer higher APYs for larger balances. These accounts, known as jumbo money market accounts, are worth considering if you want to deposit large amounts of money in a highly liquid account. Be sure to follow FDIC rules and guidelines to ensure your funds are protected if the bank fails.
Latest Average Money Market Account APY for the Last 3 Months
| date | Money Market Account National Average APY |
|---|---|
| August 12, 2024 | 0.46% |
| August 5, 2024 | 0.46% |
| July 29, 2024 | 0.46% |
| July 22, 2024 | 0.47% |
| July 15, 2024 | 0.46% |
| July 8, 2024 | 0.46% |
| July 1, 2024 | 0.46% |
| June 24, 2024 | 0.47% |
| June 17, 2024 | 0.46% |
| June 10, 2024 | 0.46% |
| June 3, 2024 | 0.47% |
| May 27, 2024 | 0.48% |
| May 20, 2024 | 0.46% |
| May 13, 2024 | 0.46% |
| May 6, 2024 | 0.47% |
| April 29, 2024 | 0.46% |
| April 22, 2024 | 0.47% |
| April 15, 2024 | 0.46% |
| April 8, 2024 | 0.47% |
How to calculate the national average interest rate
In June 2023, Bankrate updated its methodology for determining the national average CD interest rate. To arrive at the national average, more than 500 banks and credit unions are surveyed each week, including those with broad availability and high-yield offers, as well as some of the largest banks in the country.
Compare current money market account interest rates for August 2024
Vio Bank — 5.30% APY
CFG Community Bank — 5.25% APR
UFB Direct – 5.15% annual interest rate
Quantic Bank — 5.00% annual interest rate
Sallie Mae Bank — 4.60% APR
Note: The Annual Percentage Yield (APY) shown was updated between August 8 and August 15. Bankrate’s editorial team verifies this information regularly, usually every two weeks. APYs may have changed since the last update and may vary by region for some products. Bankrate’s listings include only FDIC banks or National Credit Union Administration (NCUA) credit unions.
Conclusion
With a money market account, you can easily earn a higher yield than the national average interest rate. Some FDIC-insured online banks offer money market accounts with no or low minimum deposits to open an account. These accounts also tend not to have monthly service fees. With low or no minimums and no fees, you should always strive to earn a yield many times higher than the average interest rate. However, every bank is different, so compare banks to see how much you need to deposit to open an account and whether the account has no monthly fees or an easy way to waive the fees, if there are any.
