As rates of interest begin to fall following the Fed’s recent rate cuts, it’s more essential than ever to make sure you’re earning a competitive rate in your savings. One option you could want to contemplate is a money market account (MMA).

These accounts are much like savings accounts — they provide interest in your balance, but might also include a debit card and/or check-writing capabilities.

Wondering where the highest money market account rates might be found today? Here’s what you could know.

From a historical perspective, money market account rates of interest have been quite high. The national average rate of interest for money market accounts is just 0.66%, based on the FDIC, however the top money market account rates often pay above 4% APY or much more — much like the rates offered on high-yield savings accounts.

Here’s a take a look at a number 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.

Since July 2023, the Fed maintained a goal range for its federal funds rate of 5.25%–5.50%. Nonetheless, as inflation cooled and the economy improved, the Fed slashed the federal funds rate by 50 basis points in September, and one other 25 basis points in November. In December, the Fed made its final rate cut of the yr (25bps). The federal funds rate now stands at 4.25%-4.50%.

In consequence, money market rates have begun to say no. Further rate cuts are expected in 2025, which implies now may be the last probability for savers to benefit from today’s higher rates.

Read more: Are you able to lose money in a money market account?

Considering that cash market account rates are still elevated, these accounts are a pretty option for savers. Even so, deciding whether it’s the suitable time to place money in a money market account also will depend on your financial goals and the broader economic conditions. Listed here are some key aspects to contemplate:

• Liquidity needs: Money market accounts offer easy accessibility to your money since they often include check-writing capabilities or debit card access (though there could also be a cap on monthly withdrawals). If you could keep your money accessible while still earning an honest yield, a money market account could possibly be ideal.

• Savings goals: If you have got short-term savings goals or wish to construct an emergency fund, a money market account can provide a safer place in your money, with returns which might be higher than most traditional savings accounts.

• Risk tolerance: For conservative savers preferring to avoid the ups and downs of the stock market, money market accounts are appealing because they’re backed by FDIC insurance and may’t lose principal. Nonetheless, for those who’re saving for a long-term goal like retirement, riskier investments are mandatory to generate higher returns that can get you to your savings goal.

On condition that rates of interest are still elevated, now could possibly be an excellent time to contemplate a money market account, especially for those who’re searching for a balance of safety, liquidity, and higher returns than traditional savings accounts. Comparing rates from different institutions will allow you to find the most effective options available.