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Current Money Market Rates
The current average money market rate is 0.55%, while the highest rate is up to 5.00%.
Here are today’s money market account rates:
MMA rates today
Source: Curinos. Average APY date accurate as of January 2, 2025.
Average Money Market Rates
How Does a Money Market Account Work?
Money market account are interest-bearing deposit accounts that work similarly to savings accounts. You deposit money whenever you have some to spare and it grows more interest the longer you leave it alone. These accounts are insured by the Federal Deposit Insurance Corp. (FDIC) for banks and the National Credit Union Administration (NCUA) for credit unions up to $250,000 per depositor. Money market accounts offer convenient fund accessibility, often including checks and debit cards, though you might be limited to six monthly transactions.
Compared to regular savings accounts, money market accounts usually offer higher interest rates. However, they tend to require higher minimum deposits and balances to earn these.
How To Open a Money Market Account
Before opening a money market account, check out different options at various banks or credit unions. In addition to shopping around for the highest rates, you’ll want to compare minimum balance and deposit requirements, monthly fees and withdrawal limits. Look for an account that offers competitive rates you can easily qualify for.
You can typically submit an application for a money market account online or in person at a branch. The application will ask you to provide basic information, including your name, address, Social Security number, employment status and income. You will probably need to present a government-issued ID as well. After being approved, you can make your first deposit.
Money Market Account vs. Savings Account
Money market accounts act like a hybrid between savings accounts and a checking account.
Both MMAs and savings accounts:
- Let you deposit funds as you please
- Earn interest on your savings
- Are highly liquid
- Are safe deposit accounts
- May have withdrawal restrictions, balance requirements and monthly fees.
Similar to checking accounts and unlike most savings, money market accounts:
- Can come with debit cards, checks or both
- Tend to have higher fees
- Tend to have deposit and balance requirements
Frequently Asked Questions (FAQs)
How often do money market rates change?
Money market rates are variable and can change when economic conditions change, such as when the Federal Reserve alters interest rates or due to circumstances at a specific bank. There is no set schedule for when or by how much MMA rates change, so be on the lookout for notifications from your financial institution.
How are money market rates determined?
Banks set money market account rates. The specific rate offered by an institution reflects the general interest rate environment and the bank’s economics. For instance, a new online-only financial institution may offer a high rate to gain customers, whereas an established bank could count on generations of depositors.
How can I calculate interest on a money market account?
You can use a money market account calculator to see how much interest you’ll earn. The amount of interest you earn is determined by the principal amount you deposit, the interest rate offered by your bank and the amount of time you save.