Latest news with #moneyMarketAccount
Yahoo
09-07-2025
- Business
- Yahoo
Best money market account rates today, July 9, 2025 (secure up to 4.41% APY)
Find out which banks are offering the best MMA rates right now. As interest rates continue to fall following the Fed's recent rate cuts, it's more important than ever to ensure you're earning a competitive rate on your savings. One option you may want to consider is a money market account (MMA). These accounts are similar to savings accounts — they offer interest on your balance, but may also include a debit card and/or check-writing capabilities. Wondering where the top money market account rates can be found today? Here's what you need to know. From a historical perspective, money market account interest rates have been quite high. The national average interest rate for money market accounts is just 0.62%, according to the FDIC, but the top money market account rates often pay above 4% APY or even more — similar to the rates offered on high-yield savings accounts. Here's a look at some of the highest MMA rates available today:Additionally, the table below features some of the best savings and money market account rates available today from our verified partners. Deposit account rates — including money market rates — are tied to the federal funds rate. This is an interest rate range set by the Federal Reserve and is what banks charge each other for overnight loans. When the Fed increases the federal funds rate, deposit account rates usually increase. And conversely, when the Fed lowers its rate, deposit rates fall. Between July 2023 and September 2024, the Fed maintained a target range of 5.25%–5.50%. However, as inflation cooled and the economy improved, the Fed slashed the federal funds rate by 50 basis points in September 2024. It then cut an additional 25 bps in November, and another 25 bps in December. As a result, money market rates have begun to decline. Further rate cuts are expected in 2025, which means now might be the last chance for savers to take advantage of today's higher rates. Read more: Can you lose money in a money market account? Considering that money market account rates are still elevated, these accounts are an attractive option for savers. Even so, deciding whether it's the right time to put money in a money market account also depends on your financial goals and the broader economic conditions. Here are some key factors to consider: Liquidity needs: Money market accounts offer easy access to your money since they often come with check-writing capabilities or debit card access (though there may be a cap on monthly withdrawals). If you need to keep your money accessible while still earning a decent yield, a money market account could be ideal. Savings goals: If you have short-term savings goals or want to build an emergency fund, a money market account can provide a safer place for your cash, with returns that are better than most traditional savings accounts. Risk tolerance: For conservative savers who prefer to avoid the ups and downs of the stock market, money market accounts are appealing because they are backed by FDIC insurance and can't lose principal. However, if you're saving for a long-term goal like retirement, riskier investments are necessary to generate higher returns that will get you to your savings target. Given that interest rates are still elevated, now could be a good time to consider a money market account, especially if you're seeking a balance of safety, liquidity, and better returns than traditional savings accounts. Comparing rates from different institutions will help you find the best options available. Today, the highest money market account rate is offered by TotalBank. It's MMA pays 4.41%, which is more than seven times the national average. In today's falling interest rate environment, it's quite difficult to find a deposit account that pays 5%. Some promotional checking accounts have rates above 5% APY, though checking accounts aren't a great place to store cash savings long-term. Instead, you may want to investigate market investments, which come with more risk than money market accounts and other types of deposit accounts, but also provide much higher returns, on average. Yes. As long as you open an account with a federally insured bank or credit union, your money market account is safe from market risk. The only way your account can lose money is if you incur fees.
Yahoo
06-07-2025
- Business
- Yahoo
Best money market account rates today, July 6, 2025 (best account provides 4.41% APY)
Find out how much you could earn with today's money market account rates. The Federal Reserve cut its target rate three times in 2024. So deposit rates — including money market account (MMA) rates — have started falling. It's more important than ever to compare MMA rates and ensure you earn as much as possible on your balance. The national average money market account rate stands at 0.62%, according to the FDIC. Even so, some of the top accounts are currently offering rates of 4% APY and up. Since these rates may not be around much longer, consider opening a money market account now to take advantage of today's high rates. Here's a look at some of the top MMA rates available today:Additionally, the table below features some of the best savings and money market account rates available today from our verified partners. This embedded content is not available in your region. The amount of interest you can earn from a money market account depends on the annual percentage rate (APY). This is a measure of your total earnings after one year when considering the base interest rate and how often interest compounds (money market account interest typically compounds daily). Say you put $1,000 in an MMA at the average interest rate of 0.64% with daily compounding. At the end of one year, your balance would grow to $1,006.42 — your initial $1,000 deposit, plus just $6.42 in interest. Now let's say you choose a high-yield money market account that offers 4% APY instead. In this case, your balance would grow to $1,040.81 over the same period, which includes $40.81 in interest. The more you deposit in a money market account, the more you stand to earn. If we took our same example of a money market account at 4% APY, but deposit $10,000, your total balance after one year would be $10,408.08, meaning you'd earn $408.08 in interest. This embedded content is not available in your region.
Yahoo
05-07-2025
- Business
- Yahoo
Best money market account rates today, July 4, 2025 (up to 4.41% APY return)
Find out which banks are offering the best MMA rates right now. The Federal Reserve cut the federal funds rate three times in 2024 for a total reduction of one percentage point. As a result, deposit interest rates — including money market account rates — have been falling. It's more important than ever to compare MMA rates and ensure you earn as much as possible on your balance. Although money market account rates are elevated by historical standards, the national average rate for MMAs is just 0.62%, according to the FDIC. The good news: Top high-yield money market accounts offer well over 4% APY — more than six times the national average. That's why it's important to shop around before opening a money market account. Interest rates vary widely, but there are several banks (in particular, online banks) and credit unions with highly competitive offers. Here's a look at some of the top MMA rates available today:Additionally, the table below features some of the best savings and money market account rates available today from our verified partners. This embedded content is not available in your region. Online banks operate exclusively via the web. This significantly reduces their overhead costs, so they're able to pass those savings onto customers in the form of high deposit rates and low fees. If you're searching for the best money market account rates, online banks are a great place to start. That said, online banks aren't the only place you can find savings accounts with rates of 4% to 5% APY. Credit unions are not-for-profit financial cooperatives, and are also know for providing competitive rates and fewer fees. Many credit unions have certain requirements that must be met in order to become a member, though there are some that allow just about anyone to join. Read more: Are online banks really safe? Money market accounts can be a great option for short-term savings goals, like building an emergency fund or setting aside money for an upcoming expense. They generally offer higher interest rates than regular savings accounts, and they provide easier access to your money compared to some other options like certificates of deposit (CDs). Money market accounts are also considered low-risk, and they are FDIC-insured up to the standard $250,000 per depositor, per institution. This makes them safer than money market funds, which can be subject to market risk. However, keep in mind that many money market accounts require a minimum balance to open the account and earn the highest advertised rate. If you can't maintain this balance, you might incur fees or miss out on the best rates. And although you can generally access your funds as needed, MMAs may limit the number of transactions you can make each month. If you need frequent access to your money, this might be a consideration. Read more: Is there a penalty for withdrawing from your money market account? When a money market account makes sense: You want to earn more interest than a regular savings account without locking up your money in a CD. You can maintain the minimum balance to avoid fees. You want to keep funds easily accessible for emergencies or near-term expenses. Currently, the average money market account rate is 0.63%. However, several high-yield accounts pay upwards of 4% or more. If you're considering opening a money market account, be sure to shop around and compare rates. There is no one account or investment that guarantees a 12% return. However, if your goal is to earn a strong return on your money and grow your wealth significantly, investing in market securities such as stocks, mutual funds, exchange-traded funds is the best strategy for doing so. The stock market returns about 10% per year, on average. If you aren't sure where to start, it can be helpful to speak with a financial advisor about your financial goals and priorities. Alternatively, you can sign up with a robo-advisor, which is an automated, cost-effective option for managing your portfolio. Read more: Robo-advisor: How to start investing right away This embedded content is not available in your region.
Yahoo
05-07-2025
- Business
- Yahoo
Best money market account rates today, July 5, 2025 (best account provides 4.41% APY)
Find out how much you could earn with today's money market account rates. The Federal Reserve began cutting the federal funds rate in 2024, and as a result, deposit rates (including money market account rates) have been falling. It's more important than ever to compare MMA rates and ensure you earn as much as possible on your balance. The national average money market account rate stands at 0.62%, according to the FDIC. This might not seem like 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, some of the top accounts are currently offering over 4% APY. Since these rates may not be around much longer, consider opening a money market account now to take advantage of today's high rates. Here's a look at some of the top MMA rates available today:Additionally, the table below features some of the best savings and money market account rates available today from our verified partners. The amount of interest you can earn from a money market account depends on the annual percentage rate (APY). This is a measure of your total earnings after one year when considering the base interest rate and how often interest compounds (money market account interest typically compounds daily). Say you put $10,000 in an MMA at the average interest rate of 0.64% with daily compounding. At the end of one year, your balance would grow to $10,064.20 — your initial $10,000 deposit, plus $64.20 in interest. Now let's say you choose a high-yield money market account that offers 4% APY instead. In this case, your balance would grow to $10,408.08 over the same period, which includes $408.08 in interest. Compared to a traditional savings account, a money market account may come with more restrictions. For example, money market accounts often require a higher minimum balance in order to earn the best interest rate and/or avoid fees. Certain MMAs may also limit the number of withdrawals you can make per month (typically six). In general, there are no banks that offer a 7% interest rate on money market accounts or any other type of deposit account. That said, you may be able to find local banks and credit unions running limited-time promotional rates on certain accounts, which could be as high as 7%. However, promotional rates at this level often apply to a limited balance. Read more: Do 7% interest savings accounts exist anymore?
Yahoo
04-07-2025
- Business
- Yahoo
Best money market account rates today, July 3, 2025 (earn up to 4.41% APY)
Find out which banks are offering the best MMA rates right now. As interest rates begin to fall following the Fed's recent rate cuts, it's more important than ever to ensure you're earning a competitive rate on your savings. One option you may want to consider is a money market account (MMA). These accounts are similar to savings accounts — they offer interest on your balance, but may also include a debit card and/or check-writing capabilities. Wondering where the top money market account rates can be found today? Here's what you need to know. From a historical perspective, money market account interest rates have been quite high. The national average interest rate for money market accounts is just 0.62%, according to the FDIC, but the top money market account rates often pay above 4% APY or even more — similar to the rates offered on high-yield savings accounts. Here's a look at some of the top MMA rates available today:Additionally, the table below features some of the best savings and money market account rates available today from our verified partners. Between July 2023 and September 2024, the Fed maintained a target range for its federal funds rate of 5.25%–5.50%. However, as inflation cooled and the economy improved, the Fed slashed the federal funds rate by 50 basis points in September 2024. It cut another 25 bps in November, and in December, the Fed made its final rate cut of the year (25bps). The federal funds rate now stands at 4.25%-4.50%. As a result, money market rates have begun to decline. Further rate cuts are expected in 2025, which means now might be the last chance for savers to take advantage of today's higher rates. Read more: Can you lose money in a money market account? Considering that money market account rates are still elevated, these accounts are an attractive option for savers. Even so, deciding whether it's the right time to put money in a money market account also depends on your financial goals and the broader economic conditions. Here are some key factors to consider: Liquidity needs: Money market accounts offer easy access to your money since they often come with check-writing capabilities or debit card access (though there may be a cap on monthly withdrawals). If you need to keep your money accessible while still earning a decent yield, a money market account could be ideal. Savings goals: If you have short-term savings goals or want to build an emergency fund, a money market account can provide a safer place for your cash, with returns that are better than most traditional savings accounts. Risk tolerance: For conservative savers who prefer to avoid the ups and downs of the stock market, money market accounts are appealing because they are backed by FDIC insurance and can't lose principal. However, if you're saving for a long-term goal like retirement, riskier investments are necessary to generate higher returns that will get you to your savings target. Given that interest rates are still elevated, now could be a good time to consider a money market account, especially if you're seeking a balance of safety, liquidity, and better returns than traditional savings accounts. Comparing rates from different institutions will help you find the best options available. Today's money market account rates vary quite a bit across different financial institutions. Though the national average rate for an MMA is currently 0.64%, there are some banks offering well above 4% APY. In general, you won't find money market rates above 4.50%. Unfortunately, there are very few accounts that offer 7% interest. Those that do exist are limited-time promotions, and are typically found on checking accounts. There are currently no money market accounts that pay 7%.
