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Current Money Market Rates
Right now, the average money market rate sits at 0.56%, but the best rate today is 5.00%.
Here are today’s money market account rates:
MMA rates today
Source: Curinos. Average APY date accurate as of November 21, 2024.
Average Money Market Rates
How Does a Money Market Account Work?
Money market account are interest-bearing deposit accounts that work similarly to savings accounts. You deposit money whenever you have some to spare and it grows more interest the longer you leave it alone. These accounts are insured by the Federal Deposit Insurance Corp. (FDIC) for banks and the National Credit Union Administration (NCUA) for credit unions up to $250,000 per depositor. Money market accounts offer convenient fund accessibility, often including checks and debit cards, though you might be limited to six monthly transactions.
Compared to regular savings accounts, money market accounts usually offer higher interest rates. However, they tend to require higher minimum deposits and balances to earn these.
How To Open a Money Market Account
To open a money market account, start by comparing the best yields on the market, but only include those accounts with minimum requirements you can meet. In addition to rates and minimums, consider account fees, withdrawal limits and other features to find the best fit.
When you’re ready to open an account, submit an application online or at a bank branch. The application will ask for personal information, including your name, address, Social Security number, employment status and income. You’ll also need to provide a government-issued ID. Once your application is approved, you can make your first deposit. Be sure to transfer at least the minimum opening deposit required.
Money Market Account vs. Savings Account
Money market accounts work like savings accounts in some ways and like checking accounts in others.
Both MMAs and savings accounts:
- Let you deposit funds as you please
- Earn interest on your savings
- Are highly liquid
- Are safe deposit accounts
- May have withdrawal restrictions, balance requirements and monthly fees
Similar to checking accounts and unlike most savings, money market accounts:
- Can come with debit cards, checks or both
- Tend to have higher fees
- Tend to have deposit and balance requirements
Frequently Asked Questions (FAQs)
How often do money market rates change?
Money market rates are variable and can change when economic conditions change, such as when the Federal Reserve alters interest rates or due to circumstances at a specific bank. There is no set schedule for when or by how much MMA rates change, so be on the lookout for notifications from your financial institution.
How are money market rates determined?
Banks set money market account rates. The specific rate offered by an institution reflects the general interest rate environment and the bank’s economics. For instance, a new online-only financial institution may offer a high rate to gain customers, whereas an established bank could count on generations of depositors.
How can I calculate interest on a money market account?
You can use a money market account calculator to see how much interest you’ll earn. The amount of interest you earn is determined by the principal amount you deposit, the interest rate offered by your bank and the amount of time you save.