Consider a money market account (MMA) as a merger between a savings and a checking account. Depending on the bank, MMAs generally provide you with higher interest rates compared to traditional savings account since it allows fast access to money through electronic funds transfer (EFT), check writing and/or ATM or debit card withdrawals.
The main things that differentiate the best MMAs from their second-tier competitors is a good combination of fund accessibility, high interest rates and easy-to-operate mobile app.
1. CIT Bank Money Market Account- 0.45% APY
Barely competing with its brother savings account (0.40% APY), CIT Bank provides a money market account which has check-writing features that represent one of the best options for short-term performance in term of growing and storing your wealth. With up to $250,000 insurance from the FDIC, it comprises of features such as Bill Pay, Zelle and a monthly maintenance charge, allowing your funds to increase without worry as you save for a home, large expenses or an emergency fund.
2. Discover Money Market Account – 0.35% APY
No charges. No problem. This is the motto for Discover MMA and the bank lives up to it. if you’re looking for a safe way to reserve your funds with a popular and reputable bank in the online space, Discover is where you should be. You can make external deposits and transfers without difficulty and earn an interest of between 0.30% and 0.35% on your funds. This is nearly similar to a regular savings account in regards to interest-based earnings, and it also includes check-writing capabilities.
3. Ally Bank Money Market Account – 0.50% APY
This is probably the most competitive accounts in the industry, Ally’s MMA has interests which are higher than most of its counterparts – in all balance tiers. When you deposit a minimum of $1, you can start getting a 0.50% APY as well as be able to access Ally’s self-directed or managed investment accounts.
The following banking service providers or banks also have exceptional services or great rates when it comes to money market accounts. Take note of all offered rates because they might be promotional and expire after some time. Before you open an account, always remember to confirm the terms and conditions with individual institutions.
4. Vio Bank Cornerstone Money Market Account
Vio’s MMA becomes second to none because of the very generous 0.61% APY on the market when it comes to pure earning power. This MMA can be accessed by everyone and you’ll only be required to deposit a minimum of $100. Automated savings, FICD insures, interest compounds daily and no charges are some of the many features. (Learn More)
5. Axos Bank High Yield Money Market
With a balance of more than $1,000 in your account, you’ll earn a 0.25% APY. There are other banking features that come with great rewards such as a checking account that bears interest (1.25% APY). Their integrated online banking enables you to earn interest with all products that are cash equivalent. (Learn More)
6. Synchrony Bank Money Market Account
The account doesn’t have a minimum amount on deposit and you’ll be earning a 0.35% APY. FDIC insured, the mobile app allows you to have complete virtual control of funds 24/7, ATM and check-writing options. (Learn More)
7. nbkc Money Market Account
nbkc’s doesn’t have high-interest account rates like most of its competitors, it only offers a 0.15% APY. Having said that, there’s no minimum amount deposits required and the account fees are very low which makes it an ideal choice if you don’t have other options and and/or already have an account with nbkc. There are no charges for cashier’s checks, change orders, money orders, stop payments and mobile transfers. (Learn More)
When to Consider Opening a Money Market Account
There are a couple of instances where it would make sense to open a money market account:
- Saving money for a down payment: If you’re stashing money away so that you can save towards a house, the blend of stability, liquidity and high interest that your funds will get with a money market account is vital.
- Somewhere you stash your emergency fund: The recommended period of time for having saved up and tucked away for your living expenses is 3 to 6 months in case of an unplanned emergency (i.e., pay cut, job loss, car repairs and more). A money market account can be accessed quickly allowing you use your funds and it also has a great interest rate, making it the best choice for an emergency fund.
- Sinking money for irregular, planned expenses: Sinking funds are meant for expenses that you know will come. This can be property taxes, back-to-school shopping, holiday shopping, insurance payments, vacations etc.
Money Marketing Accounts vs. Other Types of Accounts
The following are the main differences between MMAs, checking and savings accounts:
Ensure you have a checking account before you decide to open a money market account. A checking account is a basic requirement that you ought to have before deciding to open any other type of investing or banking account.
Money Market Accounts (MMAs) at a Glance
- Being able to withdraw money at least 6 times in one month
- Normally contain minimum maintenance balances and account opening balances
- May charge for falling below minimums or excess withdrawals
- Interest rates are normally higher compared to checking or savings accounts
Interest payments and deposits found in MMAs at banks that are FDIC insures are usually insured by the FDIC. Meaning that if the bank doesn’t succeed for some reason, your account balance (up to 250,000 for every depositor, per ownership category, per bank insured by the FDIC) will be reimbursed by the federal government. Credit unions that hold MMAs are insured by the equivalent of the FDIC bank insurers, the National Credit Union Administration.
If you’d like to know how the rates compare to online savings accounts, take a look at our review on the best online savings account.
What’s the Average Interest Rate for Money Market Accounts?
The national average annual percentage yield (APY) at the time this article was written was 0.07% for money market accounts. The evaluation was done by CNBC according to their weekly survey of institutions.
Although the national average is low, there are several banks that give better interest rates (ten time more). Before you decide to sign up for your current bank’s MMA, make sure you look around for better options.
How Millionable Rates Money Market Accounts
Our team at Millionable takes at look at several different factors when coming up with a 1-to-5-star rating for online savings account. the following are some of the important factors we consider when determining the ratings:
- Account balance requirement
- Annual Percentage Yield
- Mobile app reviews
- Fees, and likelihood of incurring them (for customers)
- Customer service
The most important factors that are put into consideration when rating at money market accounts is the fees and APY than any other factors because they affect the customer’s bottom line. When looking at other product categories (for instance insurance), we put more emphasis on other factors when rating the accounts.
The star ratings are considered in terms of half-star increments, where 1 star is a poor rating and 5 stars is an excellent rating. Check out our credit union and bank reviews here.