Top Offers of May 29, 2024
You could get over 10 times** the average savings account rate with our featured partners below.
*Annual Percentage Yield
**Accurate as of May 2024, assuming FDIC average savings rate of 0.45% and $2,500 deposit.
Why You Can Trust the MarketWatch Guides Team
Here’s a breakdown of how we reviewed and rated top money market accounts
130
Institutions MonitoredOur team reviewed more than 100 of the country’s largest and most prominent financial institutions, from big banks like Chase and Bank of America to credit unions like Navy Federal Credit Union and PenFed Credit Union.
688
Products StudiedTotal number of checking, saving, CDs, and money-market accounts that inform our review ratings.
86
Rates TrackedThe accounts with an annual percentage yield (APY) several times the national average rate receive the highest scores. Accounts with the lowest APY offering (under 1%) earn the least points.
10
Professionals ConsultedBefore we began our research process, we consulted with financial advisors and industry experts to ensure our evaluations covered the banking product aspects that matter most to potential customers.
Best Money Market Account Rates
Quontic Bank Money Market Account
4.9
APY5.00%Minimum Opening Deposit$100Monthly Fee$0
Why We Like Quontic Bank’s Money Market Account
We like Quontic Bank’s money market account primarily for its high APY on all balance tiers. It has a low minimum opening deposit of $100 and doesn’t charge a monthly service fee. The bank also doesn’t charge some other common fees, including those for overdrafts, cashier’s checks and excessive checks.
Quontic’s money market account lets you write checks and use a debit card. You also get helpful digital banking features, including:
- Mobile check deposit
- Zelle
- Tools for tracking your spending
- Free access to your credit score and report
Quontic primarily operates as an online bank, but it has loan offices in four cities. It also has a network of 90,000 fee-free ATMs, including many AllPoint and MoneyPass locations.
Pros & Cons
Pros Competitive APY Comes with a debit card and checks Low $100 minimum opening deposit requirement No overdraft fees or monthly maintenance fees Cons Limit of six withdrawals and transfers per statement cycle No bank branches
EverBank Yield Pledge Money Market Account
4.8
APY4.30%Minimum Opening Deposit$0Monthly Fee$0
Why We Like EverBank’s Money Market Account
EverBank, formerly known as TIAA bank, is one of our top picks for money market accounts because it has competitive APYs and few fees on its deposit accounts. It’s also widely accessible, with nearly 100,000 free ATMs nationwide. Plus, Yield Pledge Money Market Account customers get reimbursem*nts for at least $15 worth of out-of-network ATM fees each month.
In the first year, new money market customers earn higher rates than EverBank’s standard APYs for this account. During the first year and after, the rate depends on the account holder’s balance. Most money market accounts have variable rates, so EverBank might offer a higher return in the first year even if another bank’s APY starts out higher.
EverBank also offers these perks:
- No minimum opening deposit
- No minimum balance requirement
- Debit cards available
- Personal checks available with no fees
- No monthly fees
- No returned-item fees
- Zelle and mobile check deposit through the TIAA mobile app
- Financial tools
Pros & Cons
Pros Fixed APY for the first year (based on account balance) Offers checks and a debit card No minimum balance or opening deposit requirements No monthly fees or ATM fees Cons Only has branch locations in Florida Lower APYs based on account balance after the first year $100,000 minimum balance needed for the top APY
Vio Bank Cornerstone Money Market Savings Account
4.7
APY5.30%Minimum Opening Deposit$100Monthly Fee$0
Why We Like Vio Bank’s Money Market Account
Vio’s Cornerstone Money Market Savings Account offers a generous APY on all account balances, and you’ll only need $100 to open the account.
Vio Bank doesn’t charge a monthly fee unless you want paper statements (which cost $5 per month) instead of electronic ones. Since this account doesn’t support overdraft services or international wire transfers, there are no fees for them. There’s also no fee for having a negative balance.
While this money market account doesn’t allow for check writing or debit cards, there are no limits on incoming wire transfers or automated clearing house (ACH) transfers initiated by another financial institution.
Pros & Cons
Pros Competitive APY on all balances No minimum balance requirement Low minimum opening deposit of $100 No monthly fee unless you want paper statements Cons No checks, debit card, Zelle or bill pay No branches No ATMs for cash access
Zynlo Bank Money Market Account
4.6
APY5.00%*Minimum Opening Deposit$10Monthly Fee$0
Why We Like Zynlo Bank’s Money Market Account
We like the Zynlo Bank money market account for its online-banking perks, including debit card rewards and an interest rate that’s more than six times the national average. Operating since 2020, this online-only bank is available nationally and backed by Massachusetts-based PeoplesBank.
Zynlo lets you access your money market deposits through a debit card and more than 55,000 fee-free AllPoint ATMs for cash withdrawals. The bank doesn’t offer checks, but if you buy them elsewhere, it will support check writing from your account. You’ll be able to make unlimited transactions. You’ll also get access to these digital features:
- Online bill pay
- Person-to-person transfers through the Zynlo app
- Early Payday (up to two days before the scheduled date)
- Mobile check deposit
The Zynlo Money Market Account requires a low minimum opening deposit of $10 and a minimum balance of 1 cent to earn interest. The bank doesn’t list any fees (including monthly ones) or penalties for the money market account.
Pros & Cons
Pros Competitive APY on balances up to $250,000 Only requires a $10 minimum opening deposit No account fees, penalties or minimum balance requirements Includes Depositors Insurance Fund (DIF) coverage above Federal Deposit Insurance Corp. (FDIC) limits Cons No branches Doesn’t supply checks Low APY on balances over $250,000
Sallie Mae Bank Money Market Account
4.6
APY4.65%Minimum Opening Deposit$0Monthly Fee$0
Why We Like Sallie Mae’s Money Market Account
We like the Sallie Mae Bank Money Market account for its competitive APY on all balances and the fact that it doesn’t have a minimum opening deposit requirement or a monthly service fee.
Sallie Mae Bank is solely online, and its MMA supports check writing and electronic transfers. There are no limitations on the number of withdrawals from your money market account to repay Sallie Mae loans, but there are limits on remote check deposits.
The first set of checks for your money market account is free. Sallie Mae charges $5 for additional checks, $15 for stop-payment requests and $20 for outgoing wires.
Pros & Cons
Pros Competitive APY on all balances No minimum deposit or minimum balance requirements Check-writing support No monthly account fees Cons No debit card for withdrawals or purchases No branch or ATM access No option for depositing or withdrawing cash
Discover Bank Money Market Account
4.4
APY4.00% to 4.05%Minimum Opening Deposit$2,500Monthly Fee$0
Why We Like Discover Bank’s Money Market Account
The Discover Bank money market account is among our favorites for its high interest rates, lack of fees and free perks, such as debit card rewards. It offers one APY for account balances below $100,000 and a slightly higher one for balances of $100,000 or more. And there’s no minimum balance requirement.
With this account, you’ll get a debit card for purchases, ATM withdrawals and cash deposits at Walmart stores. You can also request free standard personal checks and official bank checks. There are no limits on the number of official checks or ATM withdrawals you can make each month. Discover also isn’t limiting these types of transactions:
- Debit card purchases
- Regular checks
- Online transfers, including Discover loan repayments
- Online bill payments
- ACH transfers
- Wire transfers
Other notable features of Discover’s money market account include early direct deposit, remote check deposit and Zelle transfers. You also won’t have to pay a number of fees, including these:
- Monthly maintenance
- Overdraft protection
- Stop payments
- Returned items
- Excessive withdrawals
- Expedited delivery for a replacement debit card
There aren’t any Discover branch locations, but you’ll have access to over 60,000 fee-free MoneyPass and AllPoint ATMs. For checking and money market accounts, the bank also partners with Walmart for cash deposits.
Pros & Cons
Pros Competitive APYs on all balances No minimum balance requirement or monthly service fee Check, debit card and Zelle support Free cash deposits at Walmart Cons High $2,500 minimum opening deposit $100,000 minimum balance required to get the top APY No branches
Ally Bank Money Market Account
4.4
APY4.20%Minimum Opening Deposit$0Monthly Fee$0
Why We Like Ally Bank’s Money Market Account
Ally Bank’s money market account gets a good review from us for its extensive ATM access, high yields and few fees. Although the account has three balance tiers, they all currently pay the same APY.
Ally gives account holders access to more than 43,000 fee-free AllPoint ATMs, and it reimburses up to $10 in out-of-network ATM fees per statement cycle. The bank also supplies free personal checks with money market accounts. But Ally limits certain types of transactions — including debit card transactions, online transfers and checks — to 10 per statement cycle. If you exceed this limit often, Ally could close your account.
Other features of Ally’s money market account include access to Zelle, mobile check deposits and overdraft protection. Early direct deposits are also available if you have part of the money go to an Ally Spending Account (what the bank calls its checking account).
Pros & Cons
Pros Competitive APY on all balances Comes with a debit card, checks and Zelle access No minimum balance or minimum opening deposit required No monthly fees and few other fees Cons Doesn’t accept cash deposits Monthly limit on some types of transactions No branches
*APYs accurate as of May 29, 2024
Here’s how money market accounts compare to CDs, savings accounts, and checking accounts for the banks we highlighted:
**Highest CD rate offered as of May 29, 2024
How To Use Money Market Accounts
Money market accounts are versatile tools that you can work into your financial strategy in a number of ways.
Flexible Savings
A money market account can be an excellent option for savings if you want to have access to your money at any time but also earn an APY that’s comparable to some certificate of deposit (CD) rates. This flexibility makes them ideal for short-term savings goals such as weddings or vacations.
Ask an Expert
Brandon Renfro
Ph.D., CFP, RICP, EA
“Remember that money market accounts are short-term vehicles. While they do currently offer competitive rates, those rates can change quickly, so they may not be a good place to hold your long-term savings.”
Diversified Savings Strategy
Money market accounts can complement traditional savings accounts and CDs, diversifying your savings. Anand Talwar, head of deposits and president of Ally Invest Group at Ally Financial, emphasizes the importance of using a mix of savings options to help you meet your financial goals.
“Diversification is key, and you should consider utilizing different types of accounts when you are saving for something down the road, like your child’s college tuition or retirement,” he said
Easy Transactions
Many MMAs offer checks, debit cards, ATM access and electronic transfers such as Zelle, giving you flexibility in managing your money.
Secure Investing
MMAs are safe investment tools since they’re protected by FDIC or National Credit Union Administration (NCUA) for up to $250,000 per bank or credit union, per person, per ownership category. This allows you to safely grow your savings without worrying about losing money.
Current Money Market Rates
Every month, the FDIC uses data from financial institutions to determine the national average interest rates for different types of deposit accounts. The national average interest rate for money market accounts is currently 0.66%. However, the best money market accounts on the market have APYs roughly six to eight times that rate — around 4.2% to 5.3% APY.
To earn top money market rates, you may need to meet certain requirements. For instance, you may not earn interest until your account reaches a minimum balance. A financial institution may also have balance tiers where you get better APYs as your balance increases, or your money might earn a much lower rate after reaching a certain limit.
Alternatively, an account might advertise a promotional rate that drops after a certain time frame.
Factors That Affect Money Market Rates
Money market rates periodically change based on the economic environment and actions the Federal Reserve takes, such as raising or reducing the federal funds rate. But ultimately, financial institutions decide the rates they’re willing to offer.
Inflation is one economic factor that impacts money market rates.High inflationhurts customers’ purchasing power. It can leave them with less money to put in deposit accounts and increase the demand for loans, which can help drive interest rates higher.
The opposite typically happens with low inflation since interest rates normally decline when customers have more cash to save and demand for loans goes down.
The Federal Reserve is responsible for managing U.S. monetary policy, including rate changes aimed at influencing inflation and employment levels. It sets the federal funds rate, which is the median interest rate financial institutions pay for overnight loans from one another. Because this rate affects banks’ costs, it impacts the rates they offer consumers and businesses.
The Fed holds regular meetings to discuss the economy, and it may adjust the federal funds rate in an effort to increase employment levels and get inflation to its target rate of 2%. Raising this rate aims to slow the economy, reduce inflation and encourage saving. When inflation is controlled, the Fed may lower the federal funds rate to help the economy grow, boost employment levels and increase borrowing.
However, banks make their own decisions on changing their interest rates.
Financial institutions monitor the federal funds rate since it affects their borrowing costs. They may raise or lower their money market account rates depending on competition and the need for customers’ deposits. They also adjust their loan and credit card rates to encourage or discourage customer borrowing.
Banks and credit unions may offer money market account promotions to gain customers. Online institutions often pay better rates on these accounts than traditional institutions with higher expenses such as branches and the staff for them.
Pros and Cons of a Money Market Account
It’s important to weigh the pros and cons of any product before you make an investment. Here’s a quick rundown of what to consider:
Pros
Competitive APYs available: Although some CDs have higher rates, you can get a very competitive APY on a money market account, especially one from an online financial institution.
Liquidity: MMAs generally provide easier access to your money than other accounts, often allowing for checks, bank cards and Zelle transfers without the early withdrawal penalties common with CDs.
Safe investment: A money market account with FDIC or NCUA deposit insurance is a secure choice since up to $250,000 is safeguarded.
Cons
Balance or deposit requirements: An MMA could have a minimum balance requirement or minimum deposit amount that’s required to get the best APYs.
Limited transactions: Some MMAs limit the number or amount of certain types of transfers you can make each month or statement period.
Fees: Potential account fees, such as a monthly maintenance fee or transaction fees, could impact your overall returns.
Money Market Accounts vs. Money Market Funds
Money market funds can earn competitive yields and be very safe, but they’re mutual funds rather than NCUA- or FDIC-insured bank accounts. They consist of short-term investments — such as bonds and U.S. Treasury securities — that usually mature within a year. Available through investment companies, money market funds often have minimum investment amounts and aren’t as liquid as deposit accounts.
Although their yields can beat some money market accounts, money market funds may not outperform stocks, and they don’t guarantee returns. Like with money market accounts, the overall interest rate environment affects potential returns, and different funds have different yields. You may not have to pay taxes on earnings with some funds, but you’ll often pay fees that reduce your overall return.
How To Find the Best Money Market Account
Finding the money market account that best fits your needs requires the following:
- Research rates: Compare the APYs offered by various financial institutions. Look for the most competitive rates.
- Consider account features: Choose an account that provides convenient access to your funds with features such as check-writing privileges and ATM and debit card access.
- Review fees and requirements: Be aware of minimum balance requirements and costs including monthly maintenance fees and transaction fees.
- Check for FDIC or NCUA insurance: Most MMAs are covered by one of these agencies, but make sure before you open an account.
- Check for promotions: Keep an eye out for promotional offers such as sign-up bonuses or introductory APYs, which could provide additional value.
- Read customer reviews: This can help you gauge account holders’ overall satisfaction with a financial institution and its MMAs.
Alternatives to Money Market Accounts
If you’re weighing whether a money market account meets your needs, consider three other savings options: CDs and traditional and high-yield savings accounts.
| Feature | Money Market Accounts | CDs | High-Yield Savings Accounts | Traditional Savings Accounts |
|---|---|---|---|---|
| Account Fees | May have monthly maintenance fees or transaction fees | Typically don’t have monthly maintenance fees, but early withdrawal penalties may apply | May have monthly maintenance fees | May have monthly maintenance fees |
| APY | Usually variable, typically 4% to 5.3% | Usually fixed, typically higher than savings accounts and ranging from 4.5% to 5.5% | Usually variable, typically 4.5% to 5.3% | Usually variable and lower than MMAs and CDs, typically 0.01% to 0.5% |
| Liquidity | High: may allow access to funds with check writing, ATMs, electronic transfers and debit cards | Low to medium: usually have early withdrawal penalties | Medium: typically allow transactions via electronic transfers | High: easy access to funds with minimal restrictions |
| Minimum Opening Deposit | Varies, often ranging from $100 to $5,000 | Varies, typically ranging from $0 to $1,000 | Varies, typically ranging from $0 to $1,000 | Varies, often ranging from $0 to $500 |
| Risk | Low: principal amount is typically safe due to FDIC or NCUA insurance | Low: principal amount typically safe due to FDIC or NCUA insurance, and the APY is usually fixed | Low: principal amount is typically safe due to FDIC or NCUA insurance | Low: principal amount typically safe due to FDIC or NCUA insurance |
| Transaction Limits | May limit certain types of transfers each month or statement cycle | Typically don’t allow transactions until the CD matures, so early withdrawals may incur penalties | May limit certain types of transfers each month or statement cycle | May have monthly withdrawal limits, and excessive transactions may incur fees |
Money Market Rates vs. Savings Rates
The chart below uses data from the FDIC to compare the average interest rates of savings and money market accounts from 2010 to 2024. During that time, MMA rates almost always beat savings rates.
The Bottom Line: Money Market Account Rates
Money market rates can help your savings grow, so it’s important to compare the offerings at different financial institutions, as well as any fees that might cut into your earnings. For example, if your MMA earns a competitive APY but the bank charges a monthly maintenance fee or charges transaction fees for withdrawals, these expenses could affect your balance significantly.
That’s why we recommend making your decision based on more factors than an account’s rate, such as perks and balance requirements.
Recap of Our Picks for the Top Money Market Accounts
- Quontic Bank Review
- EverBank Review
- Vio Bank
- Zynlo Bank Review
- Sallie Mae Bank
- Discover Savings Account Rates
- Ally Bank Review
FAQ: Money Market Account Rates
Online banks tend to offer the highest money market rates right now, with some having APYs as high as 5.3%.
You can typically get up to 5% APY on a savings account through online banks and credit unions. Look for high-yield savings accounts that don’t charge monthly fees or require high minimum balances.
One downside of a money market account is that transfers and withdrawals may be limited. You might also need to make a large opening deposit or keep a high balance to get the best money market rates.
Yes, you could lose money on a money market account, but it’s relatively rare. Fees and penalties could cut into your balance if they’re higher than the interest you’ve earned. Money market accounts are considered low-risk investments because they typically have deposit insurance through the FDIC or NCUA.
Methodology
Our team has researched more than 100 of the country’s largest and most prominent financial institutions, collecting information on each provider’s account options, fees, rates, terms and customer experience. We then score each firm based on the data points and metrics that matter most to potential customers. Read our full methodology.
*Data accurate at time of publication
**Rates and promotions accurate as of May 29, 2024
If you have feedback or questions about this article, please email the MarketWatch Guides team ateditors@marketwatchguides.com.
