- Our top picks for the best money market accounts offer APYs up to 5.18%.
- Most accounts include a debit card and checks.
- Some banks require you to maintain a minimum balance to earn the best money market rates.
- Online banks usually offer lower or no fees compared to traditional banks.
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On This Page
- Key Takeaways
- High-yield money market accounts comparison
- Is a money market account worth it?
- Our top picks for savings accounts
- What is a money market account?
- Current money market rates
- Types of money market accounts
- How much can I earn with a money market account?
- Who should get a money market account?
- How to choose the best money market account
- How to open a money market account
- Alternatives to money markets
- FAQ: Best money market accounts
- Related topics
On This Page
- Key Takeaways
- High-yield money market accounts comparison
- Is a money market account worth it?
- Our top picks for savings accounts
- What is a money market account?
- Current money market rates
- Types of money market accounts
- How much can I earn with a money market account?
- Who should get a money market account?
- How to choose the best money market account
- How to open a money market account
- Alternatives to money markets
- FAQ: Best money market accounts
- Related topics
Best Money Market Accounts November 2024: Over 5% APY
Elizabeth Smith - Personal Finance
+ 1 other
Reviewed By
Blake Esken - Los Angeles Times
Our top picks for the best money market accounts:
American First Money Market Deposit Account
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NCUA insured
Rates updated as of 9/9/2024
Rates updated as of 9/9/2024
APY
4.60 %
Monthly Fee
$0.00
Minimum Opening Deposit
$1.00
Quontic Bank Money Market Account
FDIC Insured
rates_last_updated
rates_last_updated
APY
apy
Monthly Fee
$0.00
Minimum Opening Deposit
min_deposit
mph.bank Money Market Deposit Account
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FDIC insured
Rates updated as of 9/9/2024
Rates updated as of 9/9/2024
APY
4.50 %
Monthly Fee
$0.00
Minimum Opening Deposit
$1.00
High-yield money market accounts comparison
| Bank | APY | Minimum deposit | Monthly fee | Account details |
|---|---|---|---|---|
| American First | 4.65% | $1 | $0 | View details |
| Harborstone Credit Union | 3.56% | $1 | $0 | View details |
| Quontic | 5.00% | $100 | $0 | View details |
| mph.bank | 4.50% | $1 | $0 | View details |
The banks in the table were selected based on exclusive partnerships and offer high-yield money market accounts with competitive APYs. The product cards below provide a deeper dive into the features of each money market account. It’s important to note that the product cards include a broader range of banks, providing a comprehensive view of available money market accounts.
Quontic Bank Money Market Account
Why we like it
The Quontic Bank money market account stands out for its impressive APY: 5.00% for all balance tiers. You don’t have to worry about your balance dropping slightly; the same high rate always applies. Plus, there are no monthly fees and you can get started with just $100.
As with most money market accounts, this one comes with a debit card that allows fee-free withdrawals at 90,000 ATMs, although you are limited to six withdrawals per statement cycle. You can lock and unlock the card as needed using the Quontic app or online system. You should be comfortable with online and phone-based management as Quontic Bank is an online bank.
An overview
| APY | Minimum deposit | Monthly fee |
|---|---|---|
| 5.00% | $100 | $0 |
*Figures are correct as of September 2024.
Synchrony Bank Money Market Account
Why we like it
Synchrony offers a money market account with an APY of 2.25% for all balance tiers, which is lower than many of the best money market rates. However, you can open an account with no minimum deposit, and you never need to worry about a minimum balance or monthly fees.
This might be a good option if you already have a checking account with Synchrony as you can transfer excess funds in seconds.
Synchrony is an online bank with an easy-to-use app and website. The account includes a debit card, and if another bank charges you ATM fees, Synchrony will refund them up to $5 per statement cycle.
An overview
| APY | Minimum deposit | Monthly fee |
|---|---|---|
| 2.25% | $0 | $0 |
*Figures are correct as of September 2024.
UFB Direct Preferred Money Market Account
Why we like it
The UFB Direct money market account offers one of the highest APYs on the market: 5.15%. That’s better than most high-yield savings accounts, and the rate applies to every balance tier. If your goal is to make as much as possible in interest, this account is a good choice.
UFB Direct doesn’t have a minimum deposit requirement, but if you want to waive the $10 monthly fee, you’ll need to keep your balance above $5,000. The account includes a debit card, mobile check deposit, online banking and even SMS banking.
An overview
| APY | Minimum deposit | Monthly fee |
|---|---|---|
| 5.15% | $0 | $10, waived with a $5,000+ balance |
*Figures are correct as of September 2024.
U.S. Bank Elite Money Market Account
Why we like it
The U.S. Bank Elite Money Market account is best if you have at least $25,000 to keep in it at all times. That’s due to the tiered APY structure; balances up to $25,000 earn a dismal 0.01% APY, while balances of $25,000 and higher earn a solid 4.25% APY. However, U.S. Bank is a traditional institution so you can manage your account in person.
You’ll need at least $100 to open this U.S. Bank money market account. The bank charges a $10 monthly fee but waives it for balances of at least $10,000. You can also waive the fee if you sign up for the bank’s Smartly checking account and the primary tier or higher of the Smart Rewards Program.
An overview
| APY | Balance | Monthly fee |
|---|---|---|
| 0.01% | $0 to $9,999.99 | $10 |
| 0.01% | $10,000 to $24,999.99 | $0 |
| 4.25% | $25,000 to $49,999.99 | $0 |
| 4.25% | $50,000 to $99,999.99 | $0 |
| 4.25% | $100,000 to $499,999.99 | $0 |
| 4.25% | $500,000 to $999,999.99 | $0 |
*Figures are correct as of September 2024.
Is a money market account worth it?
A money market account is a worthwhile option if you want to earn a high interest rate on the money you have in savings but you aren’t sure when you’ll need to use the funds.
Most accounts come with a higher APY than a typical savings or checking account, so you’ll earn more in interest. As most come with checks and debit cards, you can get cash or make purchases at any time.
Before you make the final decision, make sure that your anticipated balance will qualify you for the bank’s best money market rate.
Pros and cons of money market accounts
Here are some of the advantages and disadvantages of money market accounts.
Pros
- Solid APYs increase interest earnings
- Easy access to money via checks and debit cards
- Most are FDIC-insured
Cons
- APY may be lower than high-yield savings account
- Some banks charge monthly fees
- The highest APYs may have minimum balance requirements
What is a money market account?
A money market account is a type of savings account. Like a high-yield savings account, it offers a high APY—and like a checking account, it comes with a debit card and checks. That way, you can maximize interest earnings but still access cash at any time without paying early withdrawal penalties. Some banks limit the number of withdrawals and transfers you can make.
When it comes to money market account rates, it’s important to understand exactly what you’re getting into. Some banks offer the same APY no matter how much money you have in the account. Others offer different APYs for different balance tiers.
Current money market rates
Interest rates for money market accounts are higher than usual. In fact, the current money market rates are the highest they’ve been in years. According to the latest data from the FDIC, the national average stands at 0.64%.
The Federal Reserve has left rates untouched for the past few months, but that could change this year. Officials previously hinted at three cuts to the key interest rate this year. As a result, you might see a small drop in the best bank money market rates.
Types of money market accounts
Banks usually offer one of two types of money market accounts: traditional and high yield.
Traditional money market account
Traditional money market accounts offer standard features, including debit cards and check-writing privileges. However, they come with low interest rates that limit your earnings. It’s often higher than the APY you’d get with a regular savings account but not by much.
High-yield money market account
A high-yield money market account has a much higher APY than a traditional account. As long as you meet the balance requirements, it can help increase your interest earnings.
How much can I earn with a money market account?
Your money market account earnings depend on your APY, how much you contribute and how long you leave the funds in the account. The APY is typically higher for high-yield business money market accounts.
Let’s say you open a money market account with $10,000 and contribute an additional $500 per month.
At an APY of 5%, here’s what you could earn over time, assuming you credit the interest back to the balance:
| Time | Balance | Interest Earnings |
|---|---|---|
| 1 year | $16,651.05 | $651.05 |
| 2 years | $23,642.37 | $1,642.37 |
| 3 years | $30,991.39 | $2,991.39 |
| 4 years | $38,716.40 | $4,716.40 |
| 5 years | $46,836.63 | $6,836.63 |
Here are the potential earnings for the same scenario but with an interest of 2.25%:
| Time | Balance | Interest Earnings |
|---|---|---|
| 1 year | $16,289.60 | $289.60 |
| 2 years | $22,722.18 | $722.18 |
| 3 years | $29,301.00 | $1,301.00 |
| 4 years | $36,029.38 | $2,029.38 |
| 5 years | $42,910.71 | $2,910.71 |
*The calculations shown are just a simple example. Always seek advice from a qualified professional before making important financial decisions or long-term agreements.
Can I lose money with a money market account?
You cannot lose the money in your money market account. Your balance might drop slightly due to fees and penalties, but those are easy to predict and avoid. Most money market accounts have a variable APY, so your earnings could shift over time due to changes in the current money market rates.
Who should get a money market account?
You might consider a money market account if you want to grow your savings with a high APY but you also want to withdraw money quickly when the need arises. You should also be able to maintain the required balance minimum, if applicable.
How to choose the best money market account
With so many options to choose from, finding the right money market account takes some investigation. Keep the following factors in mind as you research different products.
APY
The APY is the most important factor in choosing a money market account. The higher it is, the more you’ll earn in interest.
Before you get excited about an APY that seems high, read the fine print. Many account types offer tiered rates, with the highest money market rates reserved for high balances—often $25,000 or more. If you don’t think you can keep the balance above the minimum, look for accounts that offer a marginally lower APY that applies to all balances.
Fees
Look through the fees carefully to see which might impact your usage of a money market account. Some common fees include monthly maintenance fees, deposit fees and wire transfer fees. If you use the account to wire money to family overseas, those fees can eat into your interest earnings.
Online banks, which have less overhead than traditional banks, tend to have fewer fees. However, traditional banks will often waive maintenance fees if you can keep the balance above the minimum.
Minimums
As you’re looking at different money market accounts, consider how much cash you have to make the opening deposit. Some banks have a minimum requirement; others do not.
It’s also important to pay attention to any minimum balance rules, as they can impact your APY and fees. Keep in mind that if you want the highest APY, certain banks require you to meet the minimum balance within a specific time frame — often, around 30 days from opening the account.
Security
Before you open a money market account, make sure that it’s insured by the Federal Deposit Insurance Corporation (FDIC). This insurance guarantees that you’ll get your money back up to the coverage limits if your chosen bank goes out of business. For an individually held account, the limit is $250,000; joint accounts have FDIC coverage up to $500,000.
Transaction options
Check out the available transaction methods for each money market account. Most accounts come with a debit card, so you can make purchases or take out money at an ATM. If you think you might need to write checks, verify that the account comes with check-writing privileges.
Accessibility
Research how easy it is to access your money market account. Look at the online banking website, and click through the mobile app to make sure you’re comfortable with the experience. Check to see if the bank has brick-and-mortar locations near you, and make sure the account allows in-person transactions. That’s one trade-off of an online bank — although the fees and account minimums tend to be lower, you have to do all account management online or by phone.
How to open a money market account
Setting up a money market account is usually quick and easy, especially if you currently have other accounts at the bank.
Here’s an overview of the process:
Create an online account with the bank. For some account types, you’ll need to visit a bank branch.
Fill in your address, contact methods, employment details and Social Security number.
Provide identification documentation, such as a driver’s license, passport or Social Security card.
Connect a bank account and make your opening deposit.
Wait for your debit card to arrive in the mail.
Alternatives to money markets
Not sure if a money market account is the right option? There are a few alternatives to consider.
High-yield savings account
A high-yield savings account has a high APY—sometimes more than 5%—so you can earn interest on your savings. Some have minimum requirements for the opening deposit and the balance; others offer the highest APY up to a certain amount.
A key difference between savings accounts and money markets is that they don’t usually include a debit card and check-writing privileges. If you need to withdraw money, you must transfer it to a checking account first.
CD account
To open a certificate of deposit account, you deposit a lump sum and leave it there for a specific amount of time. Banks typically offer terms ranging from six months to 10 years or more; each one has its own APY, which may be similar to or higher than a money market account. Some financial institutions even offer CDs with APYs up to 6%.
The money earns interest as it sits in the account. Depending on the bank, you can opt to credit the interest back to the balance or receive interest payments. When the account matures (reaches the end of its term), you can withdraw the principal and the interest.
CDs penalize you for taking out money early, which is a disadvantage when comparing CDs vs. money markets. For that reason, CDs are best for funds that you don’t plan to use for the full term.
Money market mutual fund
A money market mutual fund is a type of savings account that invests your money in safe, near-term securities. This results in impressive interest earnings and a high liquidity level, all without much risk. The risk is more than a standard money market account but not by much. It’s an effective way to diversify your investments and maximize your earnings over the short term.
Our top picks for the best money market accounts:
FAQ: Best money market accounts
Who has the highest money market rates right now?
American First Credit Union, SkyOne Federal Credit Union and Generations Bank are among the financial institutions offering the highest APYs.
What are the current money market rates?
Currently, the national average money market rate is 0.64%. The best money market accounts have APYs that fall between 4.50% and 5.20%.
How much will $10,000 make in a money market account?
Investing $10,000 in a money market account with a 0.64% APY (compounded daily), the national average, would yield approximately $64 in interest over one year. Over five years, this would accumulate to approximately $324 in total interest.
Choosing a higher APY of 5% (compounded daily) would lead to significantly greater earnings. Over one year, you could expect around $500 in interest, and over five years, the total interest would amount to approximately $2,763.
What are the downsides of money market accounts?
Money market accounts may require you to maintain a high balance to get the best rates. They often have lower APYs than CDs and high-yield savings accounts.
Is a money market account safe?
As long as a money market account is FDIC-insured, it’s safe.
Are money market accounts taxable?
Yes, you must pay taxes on money market account interest. All savings account interest is taxable, unless it is a tax-free or tax-deferred savings account.
About the Author
Elizabeth Smith is an experienced travel and finance writer who specializes in topics including credit cards, travel insurance, and personal finance. Travel insurance, in particular, has both professional and personal significance for Smith. She’s traveled to 73 countries, and has extensive experience choosing and using various policies — she understands how valuable the right plan can be in an emergency, and loves to help readers find the perfect fit.
Smith comes to the world of finance from a scientific and technical background. She spent more than 10 years writing about engineering, science, and technology for universities and private companies. When she’s not writing or traveling, Smith can usually be found hiking or Nordic skiing.
About the Reviewer
Blake Esken has over 15 years of experience in product management and has been a member of the Los Angeles Times staff for over five years.
As part of his role at the Los Angeles Times Commerce Team, Blake acts as the in-house reviewer and fact checker for LA Times Compare. He supervises all content for compliance and accuracy and puts to use skills he has honed through years of experience managing high-stakes projects for a range of industry-leading companies.
He has a strong background in data analysis, compliance, and communication, which allows him to support LA Times Compare through fact-checking in an effort to provide up-to-date and factual information across our content.
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