The Federal Reserve began cutting the federal funds rate in 2024. Because of this, deposit rates — 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.

The national average money market account rate stands at 0.64%, in response to the FDIC. This won’t seem to be much, but consider that three years ago, it was just 0.07%. So by historical standards, money market account rates are still quite high.

Even so, among the top accounts are currently offering over 4% APY. Since these rates will not be around for much longer, consider opening a money market account now to benefit from today’s high rates.

Here’s a take a look at among 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 very best savings and money market account rates available today from our verified partners.

The quantity of interest you may earn from a money market account depends upon the annual percentage rate (APY). This can be a measure of your total earnings after one 12 months when considering the bottom rate of interest and the way often interest compounds (money market account interest typically compounds each day).

Say you place $10,000 in an MMA at the typical rate of interest of 0.64% with each day compounding. At the top of 1 12 months, your balance would grow to $10,064.20 — your initial $10,000 deposit, plus $64.20 in interest.

Now let’s say you select a high-yield money market account that provides 4% APY as a substitute. On this case, your balance would grow to $10,408.08 over the identical period, which incorporates $408.08 in interest.

In comparison with a standard savings account, a money market account may include more restrictions. For instance, money market accounts often require the next minimum balance to be able to earn the very best rate of interest and/or avoid fees. Certain MMAs may additionally limit the variety of withdrawals you may make per thirty days (typically six).

Generally, there aren’t any banks that supply a 7% rate of interest on money market accounts or some other kind of deposit account. That said, chances are you’ll have the option to search out local banks and credit unions running limited-time promotional rates on certain accounts, which may very well be as high as 7%. Nevertheless, promotional rates at this level often apply to a limited balance.

Read more: Do 7% interest savings accounts exist anymore?