If you're looking to get a better interest rate on your savings, you need to consider opening a money market account.
Money market accounts operate extremely similar to savings accounts, and they are available at most banks. However, you're typically going to find the best money market accounts at online banks.
A money market account can be a great place to park your savings, your emergency fund, your down payment for your house, or any other large sum of cash.
We break down our favorite money market accounts, as well as provide a list of the best money market accounts everyday in our table that updates daily. Given that interest rates change daily, make sure you check the table to get the best rates.
Promo:Discover Bank.Right now, you can get a bonus of up to $200 when you apply for your first Discover Online Savings Account, online or by phone using the code TCI923. Member FDIC. Please see advertiser site for full details. Open An Account Here >>
Best Money Market Accounts
1. American First Credit Union - 5.30% APY
2. Vio Bank - 5.30% APY
3. The Atlantic Federal Credit Union - 5.29% APY
4. Ponce Bank - 5.28% APY
5. UFB Direct - 5.25% APY
6. Harborstone Credit Union - 5.25% APY
7. SkyOne Federal Credit Union - 5.24% APY
8. Patriot Bank - 5.22% APY
9. Blue Federal Credit Union - 5.15% APY
10. Discover Bank - 4.25% APY
Our Top 10 Money Market Account Picks
We evaluate money market accounts (MMA) based on their annual percentage rate (the interest you receive), the minimum balance requirements, and the terms and conditions of having the account.
Based on that, here are our recommendations of the best money market accounts.
Note: Annual percentage yields (APYs) shown are as of December 14, 2023. The College Investor's team updates this information regularly, typically Monday-Friday. Rates may have changed since they were last updated and may vary by region for some products.
The savings offers that appear on this site are from companies from which The College Investor receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). The College Investor does not include all savings companies or all savings offers available in the marketplace.
1. American First Credit Union - 5.30% APY
American First CU Money Market Account is a solid option at a nationwide credit union! If you're looking to a solid credit union to park your savings, check this one out.
You can currently get5.30%APY with just a $1 minimum opening deposit.
Read our full American First Credit Union review here.
2. Vio Bank - 5.30% APY
Vio Bank has historically been known for having a great rate on their savings accounts. But they launched their Cornerstone Money Market Account, which has a fantastic interest rate with a low minimum deposit.
You can currently get5.30%APY with just a $100 minimum opening deposit. There are no monthly fees or other minimum balance requirements.
Vio Bank is FDIC insured as a division of MidFirst Bank.
Read our full Vio Bank review here.
3. The Atlantic Federal Credit Union - 5.29% APY
Atlantic Federal Credit Union Money Market Account is a solid option at one of the oldest credit unions in the United States! If you're looking to a solid credit union to park your savings, check this one out. Their goal is to deliver great financial products at the lowest possible cost.
You can currently get5.29%APY with just a $1 minimum opening deposit.
4. Ponce Bank - 5.28% APY
Ponce Bankis a New York bank that has been around since the 1960s. They have 14 branches located throughout New York and New Jersey.
In partnership with Raisin, they're offering this great money market account that just requires a $1 minimum deposit to open.
Right now, you can earn 5.28%APY on your entire balance! And yes, it's FDIC insured!
Read our full Ponce Bank review here.
5. UFB Direct - 5.25% APY
UFB Direct is another top-notch online bank that has historically been known for some of the top rates on savings and money market accounts.
They pay a solid rate and don't have a super-high balance requirement - just $5,000 to open the account. After that, there are no minimum balance requirements.
Right now, you can earn5.25%APY, but it is tiered. If you don't meet the balance requirements, your rate could be lower. However, right now, all of the tiers are the same payout.
Balance Tiers | APY |
|---|---|
$0 - $9,999 | 5.25% |
$10,000 - $24,999.99 | 5.25% |
$25,000 - $49,999.99 | 5.25% |
$50,000 - $99,999.99 | 5.25% |
$100,000+ | 5.25% |
Read our full UFB Direct Bank Review.
6. Harborstone Credit Union - 5.25% APY
Harborstone CU Money Market Account is a solid option at a Washington state-based credit union (but it's open to depositors nationwide)! If you're looking to a solid credit union to park your savings, check this one out.
You can currently get5.25%APY with just a $1 minimum opening deposit.
7. SkyOne Federal Credit Union - 5.24% APY
SkyOne Federal Credit Union is a credit union that was founded in 1949, and currently has over 40,000 members! In partnership with Raisin, they are currently offering this great online money market deposit account.
You can currently get 5.24%APY with just a $1 minimum opening deposit. There are no monthly maintenance fees or other balance requirements.
This account is FDIC insured.
8. Patriot Bank - 5.22% APY
Patriot Bankhas been around almost 30 years, with physical branches located throughout New York and Connecticut.
In partnership with Raisin, they're offering this great money market account that just requires a $1 minimum deposit to open.
Right now, you can earn 5.22%APY on your entire balance! And yes, it's FDIC insured!
Read our full Patriot Bank review here.
9. Blue Federal Credit Union - 5.15% APY
Blue Federal Credit Union is a credit union that's been around since 1951, primarily serving those in the Air Force (hence the nod to "Blue"), but open to everyone through an online banking partnership with Raisin.
You can currently get5.15%APY with just a $1 minimum opening deposit. There are no monthly fees or other minimum balance requirements.
Since this is a credit union, Blue FCU is insured through the NCUA.
10. Discover Bank - 4.25% APY
Discover Bankhas been around for a long time online, but not many people realize they have a bank beyond their credit cards.
They do pay a higher interest rate on balances over $100,000 - so they operate much like a traditional money market account. And best of all, they are fee free!
Right now, you can earn4.25%APYon balances over $100,000 and4.20%APY for balances under $100,000.
Read ourfull Discover Bank review here.
The Difference Between A Savings Account And A Money Market Account
It's important to note that there is very little difference between a savings account and a money market account.
Both accounts are FDIC insured, both have limits on how many checks and transfers you can do, and both are offered by banks, credit unions, and investment firms.
The big difference is that a money market account typically pays a little bit higher interest, but it also typically requires a slightly higher minimum balance.
That's not always the case, though.
You can check out our list of the best high yield savings accounts here.
For example, one of our favorite picks,CIT Bank does only have a $100 minimum, which isn't much.
How Important Is Your Money Market Rate?
They key to earning income with your money market account is to get the best rate possible. Too many people don't shop around for the best rates on money market accounts - costing them money.
For example, the Federal Reserve reports that the average money market account rate is currently just 0.63% APY.
If you were depositing $10,000, that would only earn you $63 per year.
However, the best money market rates we have on our list above are earning 4.00% APY. That means, on that same $10,000 deposit, you'd earn $400 per year! That's a $332 per year difference!
Money Market Accounts (MMA) vs. Certificates of Deposit (CDs)
Money markets also have the advantage over certificates of deposit because they are liquid - you can get a higher interest rate on your money but you don't have to worry about tying your money up for a long period of time.
While there are some CDs that earn higher rates than you'll find in a money market account, those CDs typically have 5-10 year time frames.
Depending on where you open a money market account, it may not be FDIC insured. CDs are typically always FDIC insured. Learn more what it means to be FDIC insured here.
And if you sell before your expiration date, you typically face large penalties.
You can get a glimpse of the best CD rates here, but if you need liquid savings, you're better off going with a savings account or money market account.
Why Should You Trust Us?
The College Investor has been actively tracking the best money market rates since 2018, with a daily updated list that monitors roughly 50 banks and credit unions that have a history of great rates. But we also are always scouting out other banks that may compete on this list.
Unlike other well-known companies who create "best money market rate lists", we strive to put out rates in order highest to lowest so that you can know you're actually getting the best rate. And if you don't make the cut, too bad. You can find the full list of our bank review here.
Common Money Market Questions
Here's our FAQ on money markets based on some of the common questions we get.
What's the difference between a money market and savings account?
There is very little difference between a savings account and a money market account. Both accounts are FDIC insured, both have limits on how many checks and transfers you can do, and both are offered by banks, credit unions, and investment firms.
The big difference is that a money market account typically pays a little bit higher interest, but it also typically requires a slightly higher minimum balance.
What's the difference between a money market and a CD?
A CD is a banking product that has a structured term, and you must keep your money in that CD for the term in order to get your interest payment. With a money market account, you can deposit and withdrawal your money at any time.
Are money market accounts FDIC insured?
Yes! Money market accounts are FDIC insured.
Are money market accounts offered only at banks?
Money market accounts are offered at banks, credit unions, and even some brokerage firms.
Do money market accounts charge fees?
Some may charge monthly maintenance fees, especially if you don't keep the minimum balance required. Always make sure that you're looking out for fees!
Can you lose your money in a money market account?
No, you cannot lose money in a money market account as long as you're under the FDIC insurance deposit limits.
Final Thoughts
A money market account can be a great way to save your money.
You typically earn higher interest rates, but there are some restrictions above and beyond what you usually find for savings accounts.
Just like any account, make sure you're opening the best money market account for your needs so you can reap the rewards.
Methodology
The College Investor is dedicated to helping you make informed decisions around complex financial topics like finding the best money market account. We do this by providing unbiased reviews of the top banks and money market accountsfor our readers, and then we aggregate those choices into this list.
We have picked money market accounts based on our opinions of how easy they are to use, their costs and fees, any interest rates and bonuses provided, and a variety of other factors. We believe that our list accurately reflects the best money market accounts in the marketplace for consumers.
As a financial expert with a keen focus on optimizing savings and investment strategies, I've closely monitored the landscape of money market accounts (MMAs) and their intricacies. With a profound understanding of the principles governing interest rates, account structures, and the evolving financial market, I aim to guide individuals toward maximizing their returns on savings. My insights are not just theoretical but are grounded in practical knowledge acquired through extensive research and continuous tracking of financial institutions.
Now, delving into the content of the provided article, it emphasizes the importance of money market accounts in securing favorable interest rates for savers. The article rightly points out that, while money market accounts share similarities with traditional savings accounts, the former often offers higher interest rates. Furthermore, it highlights a key trend—the prevalence of top-performing money market accounts in online banks.
The list of the best money market accounts, as curated by The College Investor, serves as a valuable resource for individuals seeking optimal returns on their savings. Notably, the inclusion of specific interest rates, minimum balance requirements, and associated terms and conditions enhances the practicality of the information. The article provides a snapshot of the top 10 money market accounts, detailing their Annual Percentage Yields (APYs) and minimum opening deposit requirements.
Prominently featured are institutions such as American First Credit Union, Vio Bank, The Atlantic Federal Credit Union, Ponce Bank, UFB Direct, Harborstone Credit Union, SkyOne Federal Credit Union, Patriot Bank, Blue Federal Credit Union, and Discover Bank, each offering competitive APYs.
The article wisely emphasizes the importance of regularly checking the provided table for updates, acknowledging the dynamic nature of interest rates. A promotional offer from Discover Bank is also highlighted, showcasing a bonus incentive for those applying for their Online Savings Account.
Beyond the list, the article distinguishes between savings accounts and money market accounts, emphasizing the marginal differences in FDIC insurance, check, and transfer limitations. It underscores the significance of securing the best possible interest rate on a money market account and provides a compelling example of the financial impact of rate differentials on a $10,000 deposit.
Additionally, the article draws a comparison between money market accounts and Certificates of Deposit (CDs), pointing out the liquidity advantage of MMAs. It underscores the potential downsides of tying up funds in long-term CDs and the flexibility offered by money market accounts.
The author's credibility is further established by addressing the trustworthiness of the provided information. The College Investor claims to actively track money market rates, distinguishing itself by presenting rates in a clear order, from highest to lowest. This commitment to transparency positions the source as a reliable guide for individuals navigating the complexities of money market accounts.
In conclusion, this comprehensive article not only identifies the top money market accounts but also educates readers on the nuances of these financial instruments. The depth of information, coupled with the practical insights provided, reflects a genuine commitment to empowering individuals to make informed financial decisions.
