The Federal Reserve cut the federal funds rate thrice in 2024 for a complete reduction of 1 percentage point. In consequence, deposit rates of interest — including money market account rates — have been falling.

It’s more essential than ever to match MMA rates and make sure you earn as much as possible in your balance.

Although money market account rates are elevated by historical standards, the national average rate for MMAs is just 0.66%, in keeping with the FDIC. The excellent news: Top high-yield money market accounts offer upwards of 5% APY — greater than seven times the national average.

That’s why it’s essential to buy around before opening a money market account. Rates of interest vary widely, but there are several banks (particularly, online banks) and credit unions with highly competitive offers.

Here’s a have a look at a few of the top MMA rates available today:

See our picks for the ten best money market accounts available today>>

Moreover, the table below features a few of the most effective savings and money market account rates available today from our verified partners.

Online banks operate exclusively via the online. This significantly reduces their overhead costs, in order that they’re capable of pass those savings onto customers in the shape of high deposit rates and low fees. For those who’re trying to find the most effective money market account rates, online banks are an incredible place to begin.

That said, online banks aren’t the one place you will discover savings accounts with rates of 4% to five% APY. Credit unions are not-for-profit financial cooperatives, and are also know for providing competitive rates and fewer fees. Many credit unions have certain requirements that have to be met as a way to grow to be a member, though there are some that allow nearly anyone to hitch.

Read more: Are online banks really protected?

Money market accounts will be an incredible option for short-term savings goals, like constructing an emergency fund or setting aside money for an upcoming expense. They often offer higher rates of interest than regular savings accounts, and so they provide easier access to your money in comparison with another options like certificates of deposit (CDs).

Money market accounts are also considered low-risk, and so they are FDIC-insured as much as the usual $250,000 per depositor, per institution. This makes them safer than money market funds, which will be subject to market risk.

Nevertheless, have in mind that many money market accounts require a minimum balance to open the account and earn the best advertised rate. For those who can’t maintain this balance, you may incur fees or miss out on the most effective rates.

And although you possibly can generally access your funds as needed, MMAs may limit the variety of transactions you possibly can make every month. For those who need frequent access to your money, this could be a consideration.

Read more: Is there a penalty for withdrawing out of your money market account?

When a money market account is sensible:

• You wish to earn more interest than a daily savings account without locking up your money in a CD.

• You’ll be able to maintain the minimum balance to avoid fees.

• You wish to keep funds easily accessible for emergencies or near-term expenses.