Best Money Market Account Rates

How money market accounts work

A money market deposit account sits between a savings account and a checking account. The balance earns interest at a rate the bank can change at any time, and unlike a certificate of deposit there is no term to commit to. What sets it apart is spending access: most come with a cheque book, a debit card, or both, so the money is usable without a transfer first.

That convenience is usually paid for somewhere. Money market accounts more often carry a monthly maintenance fee, and more often require a minimum balance to avoid it or to earn the advertised rate. Read the tier structure before assuming the headline APY applies to your balance — a rate quoted for balances above $25,000 is not the rate a $3,000 balance earns.

Money market versus high-yield savings

For most people who simply want a place to hold an emergency fund, a high-yield savings account is the better default: online banks consistently price them at or above money market rates and rarely charge a fee. A money market account earns its place when you need to write occasional cheques from the balance, or when your bank offers a relationship rate that beats what you can get elsewhere.

If the balance is money you will not touch for a year or more, compare both against CD rates, which usually pay more in exchange for locking the funds, and against Treasury bills, whose interest is exempt from state and local income tax.

Frequently asked questions

What is the difference between a money market account and a savings account?

A money market account is a deposit account that usually adds cheque-writing and a debit card on top of savings-style interest. Both are federally insured and both can pay competitive rates. The practical difference is access: money market accounts give you more ways to spend directly from the balance, and often ask for a higher minimum to earn the top rate.

Are money market accounts FDIC insured?

Money market deposit accounts at banks are insured by the FDIC, and those at credit unions by the NCUA, both to the standard limit per depositor per ownership category. Money market mutual funds are a different product entirely — they are investments, they are not federally insured, and they can lose value.

Do money market accounts pay more than savings accounts?

Not reliably. Online savings accounts frequently beat money market rates because they carry lower servicing costs. Money markets tend to win when the balance is large enough to clear a tiered rate threshold. Compare the actual APY at your balance rather than assuming one product type pays more.

How many withdrawals can I make?

The Federal Reserve suspended the six-per-month limit under Regulation D in 2020, but individual banks were allowed to keep their own caps. Check the account agreement — some still charge an excess transaction fee.