Money market accounts are a type of bank account that combines the best features of checking and savings accounts into one. With a money market savings account (as opposed to a money market fund), you can earn interest similar to a savings account, but with a checkbook and debit card, so you can easily use funds anywhere that accepts checks or cards.
The best money market accounts offer top interest rates that rival the best high yield savings accounts. They also let you manage your money without additional fees, monthly service fees or minimum balance requirements. Here are our picks for the best money market accounts available today.
| Annual Percentage Yield (APY)* | Prima | Minimum opening deposit | Better for | |
|---|---|---|---|---|
| Ally | Annual Percentage Yield (APY)* 4,00 % | Prima N/A | Minimum opening deposit $0 | Better for High interest rates, low fees. |
| Bank of america | Annual Percentage Yield (APY)* 0.01% to 0.04% | Prima N/A | Minimum opening deposit $500 minimum daily balance to avoid service fee. | Better for Affiliate network, loyalty rewards. |
| Syncroni | Annual Percentage Yield (APY)* 2,25 % | Prima N/A | Minimum opening deposit $0 | Better for Real money market account. |
| CIT | Annual Percentage Yield (APY)* 1,55 % | Prima N/A | Minimum opening deposit $100 | Better for True Money Market Savings Account. |
| axos | Annual Percentage Yield (APY)* 0,25 % | Prima N/A | Minimum opening deposit $1.000 | Better for Peer-to-peer payments. |
| Quontic | Annual Percentage Yield (APY)* 3,75 % | Prima N/A | Minimum opening deposit $100 | Better for 90,000 commission-free ATMs. |
*Effective as of May 22, 2023. APYs may fluctuate. Ask your bank for the latest exchange rate.
The best money market accounts
We save you the time to visit dozens ofbanks, credit unions, and other financial institutions and compiled a list of the best money market accounts in one place. These are our favorite money market accounts.
Ally
Ally Bank is another of our favorite banks with one of the best online checking accounts in the entire country. For savings, Ally offers attractive interest rates that are among the best of any high-interest savings account. It includes a helpful savings cube feature and a somewhat unique tool to automatically search for opportunities to transfer from your checking account to your savings, helping you build your balances and reach your goals.
You pay no fees for typical savings account activity and you earn 330 times more than the lowest payers. One of the only major fees to be aware of is a $10 per month fee. transaction for more than six withdrawals per month, a limitation among savings accounts set by banking regulators. You don't pay monthly fees, overdraft fees, ACH transfer fees, incoming wire transfer fees, or official check fees with Ally.
Bank of america
Bank of America is another banking giant with a huge branch network and the ability to handle just about any financial need you have. However, it also comes with notoriously low interest rates and high fees. Bank of America excels at loyal customers with high combined balances across all accounts. If so, you may be eligible for fee waivers and more favorable interest rates.
Bank of America Advantage Savings is the flagship savings account. It has a monthly fee of $8 unless you maintain a minimum daily balance of $500 or meet other activity requirements. But even with the 4x savings boost for higher tier customers, you still get 0.04% APY. The lowest rates are the cost of having a branch you can visit for cash deposits and other personal banking services.
Syncroni
Synchrony offers one of the highest interest rates with no strings attached for your high-yield savings account. The High Yield Savings Account currently has an APY of 3.75% with no minimums or monthly fees. It also offers a true money market account with a lower interest rate of 2.25% APY. The high-yield savings account makes sense for a wider range of people because of the higher rate.
The traditional money market account is an FDIC-insured account with a paper checkbook, ATM card, and basic online banking features. Synchrony accounts are online only, but you can still make deposits by mail or easily add or withdraw to a linked account at other banks with a few clicks. Synchrony also offers CD accounts and a variety of credit cards.
CIT
CIT Bankis an online bank with competitive interest rates and low fees. CIT is the online branch of First Citizens Bank, but accounts cannot be accessed through First Citizens branches. CIT Bank is a direct online bank where you control everything remotely using your phone.
CIT also has a high-yield online savings account with an APY of more than 4.05% and the same minimum opening balance of $100. Both accounts have no monthly service fees. As with all accounts on this list, CIT accounts are FDIC insured up to $250,000 per month. account holder per institution.
axos
Founded in San Diego in 2000, Axos Bank is an original player in the online banking space. (That said, they have three brick-and-mortar locations in San Diego, Las Vegas, and Columbus, Ohio.) Its online interface is top-notch, and MMA comes with a debit card for easy peer-to-peer and account access. payments to enable you to send money to your peers.
Where Axos ranks behind other banks on this list is its APY, which is just 0.25%. The minimum initial deposit is also a relatively high $1,000, although once you've opened your account there is no minimum deposit requirement.
Quontic
Quontic is an online-only digital bank that is also a Community Development Financial Institution (CDFI), meaning part of its mission is to offer “personal resources and innovative programs that create economic growth and opportunity for struggling communities around around the world." Land". Part of his business is offering affordable mortgages, but he also offers high-yield banking services, including a money market account.
The Quontic Money Market account is similar to a high-yield savings account; the difference is that you can get a debit card with your Quontic MMA, so getting money and transactions is a little easier. Quontic charges a $10 transaction fee for each payout above the six free payouts awarded per month. month. The very competitive 3.75% APY applies to all balance levels, which are identified as $0.01-$4,999.99, $5,000.00-$149,999.99, and balances above $149,999.99.
Should I have a money market account?
money market accountsthey are usefulsavings accountproduct with useful check writing and ATM functions. The ability to earn well above the average bank account interest rate is a huge advantage, and finding an account with no or low fees makes it an attractive place to store your cash.
Keep in mind that some money market accounts have lower interest rates than savings accounts from the same bank, so a traditional money market account may not always be the right choice. If you can earn a higher interest rate with an online savings account, it's probably worth doing.
How to choose the best money market account for you
When choosing a money market account for your needs, keep a few important factors in mind.
- Online or in person: Online-only banking is a growing trend, but it's not a good fit for restaurant servers and valet parking attendants who get paid in cash, and many others who rely heavily on cash or online customer service. person. Online accounts generally offer higher interest rates and lower fees than traditional bank accounts.
- Renter: Interest on savings accounts is measured using APY, short forannual dividend in percent. A higher APY means you earn more interest, a good thing at the end of the month when the bank makes monthly interest payments to customers.
- Payment: You don't have to pay to save your money. Banks make money by lending you money and charging interest, but many still charge monthly maintenance fees and other fees. Some accounts have no fees, while others limit them to infrequent activities like outgoing bank transfers.
- Account functions: Virtually all accounts allow you to deposit a check, view balances, and enter transfers between accounts using the bank's mobile app or online banking tools. If you want Zelle for instant transfers, a paper checkbook,a payment card, or any other specific feature, make sure your bank of choice offers it before signing up.
- other accounts: Do you want to manage your checking, savings and credit card accounts with a single login, or do you prefer to shop around for the best rates and split your money between different banks? There is no right or wrong answer, but there is a right answer for your personal preferences and needs.
How to open a money market account
Opening a money market account is a fairly simple process that takes most people 10 minutes or less once they have all their documents and information to hand.
- Research and select an account: Start by looking for the best accounts for your needs. Since we've already taken care of the hard part, you can compare multiple accounts on this list to find the best one for your needs.
- Complete the account application– Complete the online application using the mobile app or website of your chosen bank. If you choose an account with branches, you can also drive up and handle this personally.
- Deposit your new account: When it opens, it's time to add funds. Connect your existing onechecking or savings accountto transfer money, or follow the bank's instructions for other payment methods.
Track your account balance and take care of your banking through the same app or website you used to request and deposit money into your account.
Money Market Accounts (MMA) vs. certificates of deposit (CDs)
A money market account is a demand account where you can add funds or withdraw funds at any time. Money market accounts are generally limited to six monthly withdrawals, but you can withdraw as much as you want and use those six withdrawals at any time you choose.
A Certificate of Deposit (CD)It is a time deposit account where you add money once during a certain period. On the certificate's expiry date, you can choose to renew it for another period or withdraw it. Banks often pay higher interest rates for CD accounts, but you'll pay a penalty if you withdraw before maturity.
Alternatives to money market accounts
If you don't like money market accounts, don't worry. Banks and credit unions have many additional account options.
The most similar account is a savings account, which usually works exactly like a money market account, but without a checkbook. If you can get a higher interest rate from a savings account, it is a good alternative.
A checking account may be the best option if you need more than six withdrawals per month. Some checking accounts offer interest, giving you a small income with no limits on how much or how often you can withdraw or spend.
Method
The accounts on this list were evaluated based on interest rates, account fees, branch locations and account features. Our goal was to include a group of accounts that represented the best in their respective categories to help find accounts that would work well for a wide range of needs.
Frequently Asked Questions (Frequently Asked Questions)
How does a money market account work?
Money market accounts are a type of savings account. Bank customers with money market accounts can deposit money at any time and withdraw money up to six times a month, with no limit on the size of each withdrawal.
How Much Do Money Market Accounts Earn?
Money market accounts earn interest based on the account balance and market interest rates. Interest rates are subject to change at any time without notice.
Are money market accounts insured?
Money market accounts in the United States are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA). Accounts are insured for up to $250,000 per account holder per institution, for a total of up to $500,000 in federal insurance for joint accounts.
Are money market accounts taxed?
Interest earned on money market accounts is generally considered taxable income. Consult a tax professional or use your preferred tax software to determine the tax consequences of a money market account.