Who Should Get a Money Market Account?

A money market account is a great financial tool for anyone who wants to stash some of their savings—such as for an emergency fund—in a separate account that will pay more money than a savings account at their primary bank. Money market accounts are also useful to those who would benefit from the ability to write paper checks from their savings, since this is a unique feature of this type of savings account. If writing checks is not important to you, then you could also consider a high-yield savings account. Either kind of account can work well if you shop around for a competitive rate.

Are Money Market Accounts Safe? Are They FDIC Insured?

Money market accounts are an exceptionally safe place to keep your funds. First, every money market account in our rankings is federally insured by the Federal Deposit Insurance Corporation (FDIC) —or for credit unions, the National Credit Union Administration (NCUA) —with coverage up to $250,000 per depositor and per institution. FDIC and NCUA insurance works exactly the same regardless of the size of the institution. So banking with a bigger or smaller bank does not change your risk for deposits up to $250,000. Second, even if your money market account is offered by an online bank, you'll have federal protection there, too. If the bank is simply an online division of an existing brick-and-mortar bank that's FDIC-insured, then the online division is also protected. And even if the bank is internet-only , it likely is an FDIC member as well. Third, money market accounts are not investments—they are simply deposit accounts. So the money you put in always belongs to you and cannot lose value, aside from any banking fees you may be charged.

What is a Good Money Market Account Rate?

A competitive rate for a money market account varies over time, based on the current interest rate environment. Across 2022 and 2023, rates surged due to the Federal Reserve's aggressive inflation-fighting campaign, resulting in the top money market accounts paying over 5%. But before the Fed's campaign, the best rates were less than 1%. What the future holds for money market rates is unpredictable, but if you shop from our daily ranking, you'll know you're choosing from the best rates that are currently available.

How Much Can I Earn on $10,000 in a Money Market Account? What About $100,000?

Your earnings from a money market account depend on the average daily balance you hold in the account and the exact APY your account is paying. But we can make an estimate of what you'd earn if we assume an interest rate of 5.00% APY. On a $10,000 balance held in the account for one year, your earnings would be approximately $500, or roughly $41/month. If you're lucky enough to have a $100,000 balance in the account, your earnings would be about $5,000 for the year, or about $416/month.

Will My Money Market Account Rate Change?

Yes, the interest rates on money market and savings accounts can change at any time, and without notice. That means choosing an account with the highest APY is not guaranteed to always be a rate leader. Today's money market accounts are paying record rates due to the Fed's current rate-hike campaign. But that could soon come to an end. And when the Fed at some point begins to lower its benchmark rate, money market and savings account rates will also decline. If you instead want to lock in a fixed interest rate on money you won't need for a while, one of the top-paying certificates of deposit (CDs) is a great option right now.

Will Rates Go Up to 6% in 2024? What About 7%?

Though savings, money market, and certificate of deposit (CD) rates were on a tear in 2022 and 2023, rising to their highest levels in more than 20 years, it's unlikely they'll rise much above their current levels. If the Fed were to implement another rate hike—a big "if"—then money market rates could indeed climb a bit higher. But any additional Fed increase wouldn't be expected to be large enough to push money market rates to 6%, never mind 7%. In addition, it's more likely the Fed will begin lowering rates in 2024, with no further increases—in which case money market rates will begin to decline from their record highs.

What Is the Downside of a Money Market Account?

The biggest drawback to putting your savings in a money market account is that the rate is not guaranteed. What you earn will be at the mercy of general interest rate fluctuations, so your money market rate can be expected to fall once the Federal Reserve starts lowering the federal funds rate. In contrast, money put in a CD will earn a fixed and guaranteed rate until the end of the certificate's term. Some money market accounts put a limit on the number of withdrawals you can make. If you choose one of these accounts with restrictions, a downside could be that you're not able to withdraw funds as freely each month as you may like.

We regularly review the rates of the following FDIC banks and NCUA credit unions: 5Star Bank, All America Bank, Ally Bank, Amalgamated Bank, American Heritage Credit Union, BankUnited, Bellco Credit Union, Bethpage Federal Credit Union, BluPeak Credit Union, Brilliant Bank, Chevron Federal Credit Union, CIT Bank, ConnectOne Bank, Connexus Credit Union, Dept of Commerce Federal Credit Union, Digital Federal Credit Union, Discover Bank , EverBank, Finworth, First Capital Bank, First Foundation Bank, First Internet Bank, Forbright Bank, Genisys Credit Union, Hanscom Federal Credit Union, Hughes Federal Credit Union, Ideal Credit Union, KS StateBank, Latino Federal Credit Union, Luana Savings Bank, Merchants Bank of Indiana, Mountain America Credit Union, MutualOne Bank, My eBanc, MYSB Direct, Nationwide by Axos, nbkc bank, Northern Bank Direct, Northpointe Bank, Pen Air Credit Union, PenFed Credit Union, Presidential Bank, Prime Alliance Bank, Princeton Federal Credit Union, PSECredit Union, Quontic Bank, Redneck Bank, Republic Bank of Chicago, Sallie Mae Bank, Seattle Bank, Self-Help Federal Credit Union, Spectrum Federal Credit Union, Summit Credit Union, Synchrony Bank, TAB Bank, The Federal Savings Bank, UFB Direct, US Bank, USAlliance Financial, Utah First Federal Credit Union, Webster Bank, and Zeal Credit Union.

Best Money Market Account Rates for April 2024

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Minimum opening deposit: $1,000
Minimum ongoing balance: Any amount
Monthly fee: None with $2,000 balance; otherwise $10/month
ATM card available: Yes
Debit card available: Yes
Withdrawals allowed per month: Unlimited
Checking accounts available: Yes
About: Brilliant Bank is an online division of Equity Bank, which has been an FDIC member since 1985 and has more than 60 branches across Arkansas, Kansas, Missouri, and Oklahoma.

Note: Online accounts from Brilliant Bank are not available to residents of Arkansas, Kansas, Missouri, and Oklahoma.

Note: This account will pay its top APY on a maximum balance of $500,000. Amounts over that will pay a significantly lower APY.

Minimum opening deposit: $100
Minimum ongoing balance: Any amount
Monthly fee: None
ATM card available: Yes
Debit card available: Yes
Withdrawals allowed per month: Unlimited
Checking accounts available: Yes
Membership: Based out of San Diego, anyone nationwide can join BluPeak by making a $25 donation to KPBS.

*Account available for new members only.

Minimum opening deposit: $0
Minimum ongoing balance: Any amount
Monthly fee: None with a $5,000 balance; otherwise, $10/month
ATM card available: Yes
Debit card available: Yes
Withdrawals allowed per month: Unlimited
Checking accounts available: No
About: UFB Direct is an online banking portal of Axos Bank, which has branches in San Diego and Las Vegas. Axos has been FDIC-insured since 2000.

Minimum opening deposit: Any amount
Minimum ongoing balance: $10,000 to earn stated APY
Monthly fee: None
ATM card available: Yes
Debit card available: Yes
Withdrawals allowed per month: Unlimited
Checking accounts available: Yes
About: Established in 1923, Amalgamated Bank is headquartered in New York.

Minimum opening deposit: $2,500
Minimum ongoing balance: Any amount
Monthly fee: None with a $2,500 balance; otherwise, $25/month
ATM card available: No
Debit card available: No
Withdrawals allowed per month: Unlimited
Checking accounts available: Yes
About: Republic Bank of Chicago has 19 locations in the Chicago area. FDIC-insured since 1964, it is headquartered in Oak Brook, Illinois.

Note: The Digital Money Market account is not available to customers in Illinois, Indiana, Iowa, or Michigan.

Minimum opening deposit: $50
Minimum ongoing balance: Any amount
Monthly fee: None
ATM card available: No
Debit card available: No
Withdrawals allowed per month: 6, with a fee of $2 each after that
Checking accounts available: Not available online
About: FDIC-insured since 1934, Merchants Bank of Indiana operates branches in the greater Indianapolis area, while serving online customers across the country.

Minimum opening deposit: $100
Minimum ongoing balance: Any amount
Monthly fee: None
ATM card available: No
Debit card available: Yes
Withdrawals allowed per month: 6, with a fee of $10 each after that
Checking accounts available: Yes
About: Quontic offers online banking products to customers nationwide. It has been an FDIC member since 2005.

Minimum opening deposit: $5,000
Minimum ongoing balance: Any amount
Monthly fee: None
ATM card available: Yes
Debit card available: No
Withdrawals allowed per month: Unlimited
Checking accounts available: No
About: FDIC-insured since 1960, Northern Bank serves online customers across the country with Northern Bank Direct, while also operating branches in Massachusetts.

Minimum opening deposit: $500
Minimum ongoing balance: Any amount
Monthly fee: None
ATM card available: Yes
Debit card available: Yes
Withdrawals allowed per month: 6, with a fee of $5 each after that
Checking accounts available: Yes
About: FDIC-insured since 1969, All America Bank operates branches in Oklahoma, while serving nationwide customers online.

Note: This account will pay its top APY on a maximum balance of $100,000. Amounts over that will pay a significantly lower APY.

Minimum opening deposit: $500
Minimum ongoing balance: Any amount
Monthly fee: None
ATM card available: Yes
Debit card available: Yes
Withdrawals allowed per month: Unlimited
Checking accounts available: No
About: Redneck Bank is an online division of All America Bank, which has been an FDIC member since 1969, with physical branches in Oklahoma.

Note: This account will pay its top APY on a maximum balance of $100,000. Amounts over that will pay a significantly lower APY.

Minimum opening deposit: $1,000
Minimum ongoing balance: Any amount
Monthly fee: None
ATM card available: Yes
Debit card available: Yes
Withdrawals allowed per month: Unlimited
Checking accounts available: Not available online
About: FDIC-insured since 2007, First Foundation Bank operates branches throughout California, as well as in Florida, Hawaii, Nevada, and Texas. It also serves nationwide customers online.

Minimum opening deposit: $0
Minimum ongoing balance: Any amount
Monthly fee: None
ATM card available: No
Debit card available: No
Withdrawals allowed per month: Unlimited
Checking accounts available: No
About: Alongside its massive student lending operation, Sallie Mae Bank offers online banking products to customers nationwide, with FDIC insurance coverage since 2005.

Minimum opening deposit: $0
Minimum ongoing balance: Any amount
Monthly fee: None
ATM card available: No
Debit card available: No
Withdrawals allowed per month: 6, with a fee of $25 each after that
Checking accounts available: Yes
About: FDIC-insured since 2004, Prime Alliance serves customers at its location in Woods Cross, Utah, as well as nationwide through its online portal.

Minimum opening deposit: $25,000
Minimum ongoing balance: $25,000 to earn stated APY
Monthly fee: None with $25,000 balance; otherwise $5/month
ATM card available: Yes
Debit card available: Yes
Withdrawals allowed per month: Unlimited
Checking accounts available: Yes
About: Based in Bethesda, Maryland, Presidential Bank operates branches in the greater Washington, D.C. metro area. It has been an FDIC member since 1985.

Minimum opening deposit: $0
Minimum ongoing balance: Any amount
Monthly fee: None
ATM card available: Yes
Debit card available: Yes
Withdrawals allowed per month: Unlimited
Checking accounts available: Yes
About: Complementing its massive retirement account business, EverBank (formerly TIAA Bank) serves nationwide customers online and operates brick-and-mortar branches in Florida. It has been FDIC insured since 1998.

Note: The APY on this account is a 1-year promotional rate, offered for your first year after opening the account.

Tip

If you've never opened an account somewhere other than your primary bank or credit union, you may worry that top-paying small institutions or online-only banks are riskier, or that it will be inconvenient. Fortunately, your funds are as protected as they are at any federally insured institution, regardless of size or whether it has branches. And though transferring funds between institutions can take one to three days, today's online banking systems make transfers very easy.

What Is a Money Market Account?

A money market account is a type of bank account that pays a better interest rate than what you can earn on the money in your checking account (which typically pays no interest) or in a regular savings account. That makes it a great place to move some of the funds that you don't need on an everyday basis, boosting the amount of interest you earn over the course of each month.

Like a savings or checking account, money market accounts are liquid. That means you have the freedom to deposit and withdraw funds more or less as you choose. But unlike a savings account, money market accounts come with the option to write checks, making them a sort of hybrid between savings and checking accounts.

Pros and Cons of Money Market Accounts

Pros

Your balance earns interest
Withdraw and deposit when you like
Offers virtually risk-free safety
If rates rise, your APY could increase

Cons

Scoring a high APY may require opening an account at another bank
Easy access to your money can make it tempting to spend
If rates drop, your APY could be lowered

Pros Explained

Your balance earns interest: Unlike a typical checking account, your balance in a money market will earn an annual percentage yield (APY), usually paid to you at the end of each monthly statement cycle.
Allows withdrawals and deposits when you like: You can deposit money into a money market account at any time, and you can generally withdraw it when you like. Some accounts limit your withdrawals to six per month, but many accounts no longer have this restriction.
Offers virtually risk-free safety: You cannot lose money on a money market account, and if you open it at an FDIC-insured bank or NCUA-insured credit union, your deposits are federally insured in the unlikely scenario that the institution fails.
If rates rise, your APY could increase: Like a savings account, money market accounts pay a variable rate, which means the APY may rise when interest rates are on an upswing.

Cons Explained

Scoring a high yield may require opening an account at another bank: To earn a leading rate on a money market account, you'll need to shop around. And the odds are high that scoring a top rate will require opening a money market account at a bank different than where you already have a checking and savings account.
Easy access to your money can make it tempting to spend it: Because you can withdraw funds from a money market at any time, there is little to stop the temptation of pulling out money and spending it.
If rates drop, your APY could be lowered: When interest rates are dropping, the rate on your money market account is likely to be reduced.

For money you know you won't need access to for a while, also consider one of the options in our daily ranking of the best nationwide CDs. You may be able to earn a higher APY than with a savings or money market account, and your rate will be locked for the full duration of the CD term.

Tips for Picking the Best Money Market Account for You

The best money market account for you will be one that pays a competitive interest rate and has account requirements that will work for you. Some of the account features you'll want to consider are:

An opening deposit minimum
An ongoing balance requirement
Any monthly maintenance fees
The number of withdrawals you'll be allowed to make per month
Whether an ATM card is provided and can be used for cash withdrawals

To determine which of the factors above are the most important to you, think about how you expect to use the account, such as the minimum balance you feel confident you can maintain and how often you'll want to take funds out of the account.

Warning

Don't assume that because an account has the words "money market" in its name that it is a true money market account with check-writing privileges. In recent years, financial institutions have started to use the phrase "money market" as a marketing term, sometimes applied to accounts with no check-writing abilities and therefore they are essentially high-yield savings accounts.

How to Open a Money Market Account

Once you've decided which money market account is best for you, opening the account should be pretty straightforward and will follow the same process as opening a savings or checking account.

Start the online account opening process - Most institutions allow online account opening, so look for an "Open Account" button or a link on the institution's website.
Provide personal information - Fill in all of the information asked of you on the online application. Note that you'll be asked security questions to confirm your identity.
Upload required documents - The process varies from institution to institution, but most will ask you to provide a copy of identification, such as a photo or scan of your driver's license. Some banks will ask for this within the online account opening process, while others may ask you to upload it or send it via secure message after you've submitted your application.
Fund the account - Adding money your account may need to take place at the same time as you open the account, or may be able to be done later. If the money market account has a required opening deposit, you'll be asked toward the end of the application process how you'll fund your account. The most common way is via an ACH transfer from another bank, but other methods include a wire from another bank, sending in a paper check, or sometimes even charging a credit or debit card.
Register for online banking - Once you've completed the account application, some banks will make online banking immediately available to you. But others may require some time to fully approve your application, providing the info you need for online banking within a few days of your completion of the application.

Alternatives to Money Market Accounts

Here are a few additional options to consider instead of, or in addition to, putting funds in a money market account.

Traditional Savings Account - Because traditional savings account tend to pay modest rates, a primary advantage of money market accounts is their higher return. A money market account may require a larger initial deposit or ongoing balance—or both—than a standard savings account, but that is not always the case so it's useful to shop around. Money market accounts will also allow you to write checks, which traditional savings accounts do not offer.
High-Yield Savings Account - High-yield savings accounts and money market accounts are fairly interchangeable, with the only specific difference being that money market accounts offer check-writing. If you don't care so much about having paper checks you can write from your savings, then it's smart to also shop the best high-yield savings accounts, as they often pay higher APYs.
Certificate of Deposit (CD) - If you know you can live without a portion of your savings for months or years, you can often earn more by opening a certificate of deposit (CD). That's because banks and credit unions typically offer a higher APY on CDs in exchange for your agreement that you'll keep the funds in the CD until it matures. Another advantage of CDs is that their rate is fixed. If interest rates drop in the future, your money market rate will drop as well, but a CD rate is locked for the full CD term. Note that early withdrawals from a CD will trigger a penalty, but for some, this is a useful tool for thwarting the temptation to spend your savings.
U.S. Savings Bonds - Another option for your cash savings is U.S. savings bonds. EE bonds offer a fixed interest rate that you'll know at the time of making your deposit decision, while I bonds offer a rate that changes every six months based on current inflation levels (hence, the name I bonds). These investments are exceptionally safe, but note that they do not, for any reason, allow a withdrawal within the first 12 months.
U.S. Treasuries - You could also consider a U.S. Treasury bill. T-bills allow you to lend money to the U.S. government for a short, fixed amount of time. Considered one of the safest investments in the world, T-bills offer durations ranging from four weeks to one year.

Why You Should Trust Us

Every business day, Investopedia collects money market account rates from over 60 banks and credit unions that offer their products to customers nationwide. When ranking money market accounts, we ensure the institutions meet our requirement of being federally insured by the FDIC or NCUA, and we research the basic account features, such as minimum required balances, any fees, and other factors that will help readers choose the account that will best meet their needs. Launched in 1999, Investopedia has been helping readers find the best savings account and CD rates since 2019, and the best money market accounts since 2021.

Frequently Asked Questions

Who Should Get a Money Market Account?

A money market account is a great financial tool for anyone who wants to stash some of their savings—such as for an emergency fund—in a separate account that will pay more money than a savings account at their primary bank.Money market accounts are also useful to those who would benefit from the ability to write paper checks from their savings, since this is a unique feature of this type of savings account. If writing checks is not important to you, then you could also consider a high-yield savings account. Either kind of account can work well if you shop around for a competitive rate.
Are Money Market Accounts Safe? Are They FDIC Insured?

Money market accounts are an exceptionally safe place to keep your funds. First, every money market account in our rankings is federally insured by the Federal Deposit Insurance Corporation (FDIC)—or for credit unions, the National Credit Union Administration (NCUA)—with coverage up to $250,000 per depositor and per institution. FDIC and NCUA insurance works exactly the same regardless of the size of the institution. So banking with a bigger or smaller bank does not change your risk for deposits up to $250,000.
Second, even if your money market account is offered by an online bank, you'll have federal protection there, too. If the bank is simply an online division of an existing brick-and-mortar bank that's FDIC-insured, then the online division is also protected. And even if the bank is internet-only, it likely is an FDIC member as well.
Third, money market accounts are not investments—they are simply deposit accounts. So the money you put in always belongs to you and cannot lose value, aside from any banking fees you may be charged.
What is a Good Money Market Account Rate?

A competitive rate for a money market account varies over time, based on the current interest rate environment. Across 2022 and 2023, rates surged due to the Federal Reserve's aggressive inflation-fighting campaign, resulting in the top money market accounts paying over 5%. But before the Fed's campaign, the best rates were less than 1%. What the future holds for money market rates is unpredictable, but if you shop from our daily ranking, you'll know you're choosing from the best rates that are currently available.
How Much Can I Earn on $10,000 in a Money Market Account? What About $100,000?

Your earnings from a money market account depend on the average daily balance you hold in the account and the exact APY your account is paying. But we can make an estimate of what you'd earn if we assume an interest rate of 5.00% APY. On a $10,000 balance held in the account for one year, your earnings would be approximately $500, or roughly $41/month. If you're lucky enough to have a $100,000 balance in the account, your earnings would be about $5,000 for the year, or about $416/month.
Will My Money Market Account Rate Change?

Yes, the interest rates on money market and savings accounts can change at any time, and without notice. That means choosing an account with the highest APY is not guaranteed to always be a rate leader.Today's money market accounts are paying record rates due to the Fed's current rate-hike campaign. But that could soon come to an end. And when the Fed at some point begins to lower its benchmark rate, money market and savings account rates will also decline.
If you instead want to lock in a fixed interest rate on money you won't need for a while, one of the top-paying certificates of deposit (CDs) is a great option right now.
Will Rates Go Up to 6% in 2024? What About 7%?

Though savings, money market, and certificate of deposit (CD) rates were on a tear in 2022 and 2023, rising to their highest levels in more than 20 years, it's unlikely they'll rise much above their current levels. If the Fed were to implement another rate hike—a big "if"—then money market rates could indeed climb a bit higher. But any additional Fed increase wouldn't be expected to be large enough to push money market rates to 6%, never mind 7%. In addition, it's more likely the Fed will begin lowering rates in 2024, with no further increases—in which case money market rates will begin to decline from their record highs.
What Is the Downside of a Money Market Account?

The biggest drawback to putting your savings in a money market account is that the rate is not guaranteed. What you earn will be at the mercy of general interest rate fluctuations, so your money market rate can be expected to fall once the Federal Reserve starts lowering the federal funds rate. In contrast, money put in a CD will earn a fixed and guaranteed rate until the end of the certificate's term.Some money market accounts put a limit on the number of withdrawals you can make. If you choose one of these accounts with restrictions, a downside could be that you're not able to withdraw funds as freely each month as you may like.
Banks We Reviewed

We regularly review the rates of the following FDIC banks and NCUA credit unions: 5Star Bank, All America Bank, Ally Bank, Amalgamated Bank, American Heritage Credit Union, BankUnited, Bellco Credit Union, Bethpage Federal Credit Union, BluPeak Credit Union, Brilliant Bank, Chevron Federal Credit Union, CIT Bank, ConnectOne Bank, Connexus Credit Union, Dept of Commerce Federal Credit Union, Digital Federal Credit Union, Discover Bank , EverBank, Finworth, First Capital Bank, First Foundation Bank, First Internet Bank, Forbright Bank, Genisys Credit Union, Hanscom Federal Credit Union, Hughes Federal Credit Union, Ideal Credit Union, KS StateBank, Latino Federal Credit Union, Luana Savings Bank, Merchants Bank of Indiana, Mountain America Credit Union, MutualOne Bank, My eBanc, MYSB Direct, Nationwide by Axos, nbkc bank, Northern Bank Direct, Northpointe Bank, Pen Air Credit Union, PenFed Credit Union, Presidential Bank, Prime Alliance Bank, Princeton Federal Credit Union, PSECredit Union, Quontic Bank, Redneck Bank, Republic Bank of Chicago, Sallie Mae Bank, Seattle Bank, Self-Help Federal Credit Union, Spectrum Federal Credit Union, Summit Credit Union, Synchrony Bank, TAB Bank, The Federal Savings Bank, UFB Direct, US Bank, USAlliance Financial, Utah First Federal Credit Union, Webster Bank, and Zeal Credit Union.

How We Find the Best Money Market Account Rates

Every business day, Investopedia researchers and fact-checkers track the rate data of more than 60 banks and credit unions that offer money market accounts to customers nationwide, resulting in a daily ranking of the top-paying money market accounts. To qualify for our list, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account's minimum initial deposit must not exceed $25,000. The account also must allow check-writing. Banks and credit unions must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don't meet other eligibility criteria (e.g., you don't live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. If the account is accessible only through a mobile app, we require that the app be available on both the iOS and Android platforms.

Investopedia was founded in 1999, and our coverage of the best money market accounts began in 2019. For more about how we choose the best money market accounts, read our full methodology.

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Best Money Market Account Rates for April 2024—Up to 5.35%

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