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current money market rate
The average interest rate in the money market is currently 0.59%, while the current maximum interest rate is 5.07%.
Today’s money market account rates are:
Average APY: 0.59% Maximum rate: 5.07%
Source: Kyrinos. Data was accurate as of October 4, 2024. Rates are based on a minimum deposit of $10,000.
What is the money market rate?
The money market rate is the interest rate associated with a money market savings account. These rates are floating rather than fixed and are subject to fluctuation and change without notice. It can also be tiered, so the higher your balance, the better the rate. Money market interest income is credited as a percentage of your balance.
The interest you earn on your balance is your interest rate, but the money you earn on your balance compounded over a year is reflected in your annual percentage yield (APY). Compound interest is when you pay more interest on the interest you’ve already paid.
How do money market accounts work?
A money market account is an interest-bearing savings account that functions similarly to a savings account. You deposit your money whenever you can afford it, but the longer you leave it alone, the more interest it will accrue. These accounts are insured by the FDIC for banks and the NCUA for credit unions up to $250,000 per depositor. Money market accounts offer convenient access to funds, including checks and debit cards, but may be limited to six transactions per month.
Compared to regular savings accounts, money market accounts typically offer higher interest rates. However, they tend to require higher minimum deposits and balances to earn them.
How to open a money market account
To open a money market account, first research the account and choose the option with the best rate for the amount you plan to save. To earn interest and avoid fees, make sure you meet the starting and continuing balance requirements. In addition to rates and minimums, consider account fees, withdrawal limits, and other features to find the best fit.
When you are ready to open an account, you can submit your application online or at a bank branch. This application asks for personal information such as name, address, social security number, employment status, and income. You must also provide a government-issued ID. Once your application is approved, you can make your first deposit. Please send at least the required starting deposit.
Money market accounts and savings accounts
Money market accounts are similar to checking accounts in some ways, but they are most similar to savings accounts. Like a savings account, you earn interest on your balance and can add or remove funds at any time. Balances are guaranteed and easily accessible with either type of account. Both savings and money market accounts may have monthly fees, balance requirements, and transaction limits, but money market accounts tend to have higher fees and minimums.
Money market accounts typically offer more flexibility than savings accounts, as they may offer debit card or check transfer capabilities. This makes them a bit like checking accounts, but unlike checking accounts, money market accounts often have limited monthly transactions.
Do money market accounts have value?
If you want to save now, but want easy access to cash later, a money market account is worth it. This account is FDIC or NCUA insured and will never lose value, making it a safe option for storing your money. As long as you meet the deposit and balance requirements to avoid fees and earn interest, your money market account is in good standing.
If you can’t meet the requirements to get the best rate, or if your money market account charges fees that exceed your earnings, MMA may not be worth it. Consider other savings accounts if your balance is low, or an interest-bearing checking account if you need to access your funds frequently.
