The Federal Reserve cut its target interest rate three times in 2024, As a result, deposit rates — including money market account 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 0.66%, according to the FDIC. This might not seem like much, but consider that three years ago, it was just 0.07%, reflecting a sharp rise in a short period of time.This is largely due to monetary policy decisions by the Fed, which began raising its benchmark rate in March 2022 to combat skyrocketing inflation. In fact, the Fed increased rates 11 times. But it finally cut its benchmark rate three times in late 2024, causing deposit account rates to start droppingEven so, some of the top accounts are currently offering upwards of 5% 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: Zynlo Money Market Account: 5.00% APY TotalBank Online Money Market Deposit Account: 4.86% APY (on balances of $2,500 and up) Brilliant Bank Surge Money Market Account: up to 4.85% Quontic Bank Money Market Account: 4.75% APY VIO Cornerstone Money Market Savings Account: 4.66% APY First Foundation Bank Online Money Market Account: 4.50% APY Prime Alliance Bank Personal Money Market Account: 4.15% APY UFB Direct Portfolio Money Market Account: 4.01% APY See our picks for the 10 best money market accounts 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 $1,000 in an MMA at the average interest rate of 0.66% with daily compounding. At the end of one year, your balance would grow to $1,006.62 — your initial $1,000 deposit, plus just $6.62 in interest.Now let’s say you choose a high-yield money market account that offers 5% APY instead. In this case, your balance would grow to $1,051.27 over the same period, which includes $51.27 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 5% APY, but deposit $10,000, your total balance after one year would be $10,512.67, meaning you’d earn $512.67 in interest.
Dom. Dic 29th, 2024
