9 Best Money Market Accounts March 2024: Up To 5.48% (2024)

According to the Federal Deposit Insurance Corporation (FDIC), the average money market rate is 0.66% as of February 20, 2024. However, the best MMAs offer rates far higher than the national average.

We’ve compared 59 money market accounts at 44 nationally available banks and credit unions to find some of the best accounts available. Here’s a list of the best money market accounts our experts have found, ordered from the highest to lowest annual percentage yield (APY).

• First Internet Bank Money Market Savings: Up to 5.48% APY
• Vio Bank Cornerstone Money Market Account: 5.30% APY
• Quontic Bank Money Market Account: 5.00% APY
• Zynlo Bank Money Market: 5.00% APY
• Connexus Credit Union Money Market Account: Up to 4.15% APY
• EverBank Yield Pledge Money Market: Up to 4.30% APY
• Sallie Mae Bank Money Market Account: 4.75% APY
• Ally Bank Money Market Account: 4.35% APY
• Bethpage Federal Credit Union Money Market Account: Up to 2.00% APY

See below to learn more about why we picked each account, the pros and cons, and to access individual bank reviews.

Annual percentage yields (APYs) and account details are accurate as of March 4, 2024.

The best money market account for you will depend on your financial goals and how much cash you’re prepared to deposit. To help you find the right account for you, we’ve put together a list of the top money market accounts that offer competitive rates and have requirements that are easy to meet. Learn more about these picks and who each money market account is best for below.

Account	Company - Logo	Forbes Advisor Rating	Forbes Advisor Rating	Best For	Annual Percentage Yield	Minimum Deposit Requirement	Learn More CTA text	Learn more CTA below text	Learn More
Connexus Credit Union Money Market Account		4.8		Best Overall Credit Union Money Market Account	Up to 4.15% with $1,000,000 minimum balance	$1,000	Learn More	On Bankrate.com's Website
Quontic Bank Money Market Account		4.7		Best Overall Bank Money Market Account	5.00%	$100	Learn More	On Quontic Bank's Website
Zynlo Bank Money Market		4.7		Best for Deposit Insurance Coverage	5.00% on balances of $250,000 or less	$10	Learn More	On Bankrate.com's Website
First Internet Bank Money Market Savings		4.5		Best for Full-Service Banking	Up to 5.48%	$100	Learn More	On Bankrate.com's Website
Ally Bank Money Market Account		4.4		Best for Access to Cash	4.35%	$0	Learn More	On Bankrate.com's Website
Sallie Mae Bank Money Market Account		4.4		Best for Savings Goals	4.75%	$0	Learn More	On Bankrate.com's Website
EverBank Yield Pledge Money Market		4.4		Best for Guaranteed Competitive Rates	Up to 4.30%	$0	Learn More	On Bankrate.com's Website
Vio Bank Cornerstone Money Market Account		4.1		Best for Parking Cash	5.30%	$100	Learn More	On Bankrate.com's Website
Bethpage Federal Credit Union Money Market Account		4.0		Best for Credit Union Mobile Banking	Up to 2.00%	$500	Learn More	On Bankrate.com's Website

To create this list, Forbes Advisor analyzed 59 money market accounts at 44 financial institutions, including a mix of traditional brick-and-mortar banks, online banks and credit unions. We ranked each account on 14 data points within the categories of APY, minimum requirements, customer experience, digital experience, fees and accessibility of funds. All of the accounts on our list are online-based accounts.

Here’s the weighting assigned to each category:

• APY: 45%
• Minimums: 15%
• Customer experience: 10%
• Digital experience: 10%
• Fees: 10%
• Accessibility of funds: 10%

Banks and credit unions offering the highest APYs rose to the top of this list, as did those with low fees and easy-to-meet minimum deposit and balance requirements. Accounts with high customer experience ratings and highly rated online and mobile banking tools were also ranked higher. And we prioritized money market accounts offering check-writing and debit card privileges.

We also considered whether there were complex tier structures or requirements to earn the APY or other stipulations to earn the APY. High minimum deposit and balance requirements affected scores negatively. The money market account must be nationally available to appear on this list.

To learn more about our rating and review methodology and editorial process, check out our guide onHow Forbes Advisor Reviews Banks.

Average money market rates are generally much lower than the best money market rates available. The table below compares the average APYs for money market accounts

What Is a Good Money Market Rate?

The specific APY that qualifies as a good money market rate depends on market trends at the time you’re looking for an account. Currently, the most competitive accounts offer APYs between 4.00% and 5.00% or higher. However, you might need to meet minimum balance or activity requirements to unlock the most competitive rates. Many money market accounts use tiered interest rate structures that pay different APYs on different balance tiers—often, better rates on higher balances.

In addition to searching for a good money market rate at a bank you trust, consider deposit requirements and account fees before choosing an MMA.

Why Are Money Market Rates Higher Than Savings Rates?

Money market rates are generally higher than savings account rates because MMAs are more likely to require higher minimum deposits or ongoing balances.

Rates on money market accounts steadily increased throughout last year, but it’s unlikely they’ll do the same in 2024, as the Federal Reserve has indicated it intends to lower interest rates this year.

The Federal Reserve does not set interest rates for banks, but it does set a federal funds rate. This is the interest rate range used to guide lending between banks and help promote economic stability, and financial institutions look to it for guidance on setting their own rates for customers. In September 2023, the Federal Open Market Committee announced a pause to federal funds rate hikes, marking the end of ten consecutive rate increases dating back to March 2022. The Fed has held rates steady at the target range of 5.25% to 5.50% since then.

Considering consumers are currently seeing some of the best money market rates they’ve seen in years, this trend is likely to continue as long as banks are willing to compete for new deposits. However, rates are likely to begin trending downward at some point next year.

People haven’t looked at money market accounts for several years because rates were so low. But rates are good now, and the risks are minimal. You can probably be making more money on your savings with a money market account.
–Ann Logue, financial writer and author of Hedge Funds For Dummies

• What Is a Money Market Account?
• How Much Do Money Market Accounts Earn?
• Pros and Cons of Money Market Accounts
• Who Should Get a Money Market Account?
• How To Choose a Money Market Account
• How To Open a Money Market Account
• Is a Money Market Account Worth It?
• Alternatives to Money Market Accounts
• Banks We Monitor
• Frequently Asked Questions (FAQs)

You can think of a money market account as a hybrid, part savings account and part checking account. You get the interest-earning power of a high-yield savings account and, with many MMAs, the accessibility of a checking account—debit card and check-writing privileges.

Money market accounts don’t offer as much liquidity as checking accounts—the number of transactions you can make per statement cycle is often limited. But they tend to provide more access to your cash than a savings account.

What Is a High-Yield Money Market Account?

A high-yield money market account is a money market account that pays an interest rate multiple times higher than the average money market account rate, as determined by the FDIC. You can typically find high-yield money market accounts at online banks and credit unions.

How Does a Money Market Account Work?

Money market accounts work similarly to savings accounts in that you earn interest on the funds you deposit. These aren’t accounts meant for everyday spending, like a checking product. But they tend to offer limited liquidity and access to funds—you may be able to write checks or make debit transactions.

Your earning potential is based on your rate, balance and time horizon. Assuming no additional deposits and consistent interest, a $10,000 balance in an MMA earning 0.23% APY would earn $23 after one year. That same balance in a more competitive MMA with an APY of 2.25% would earn $225 in the first year.

Can You Lose Money With a Money Market Account?

Money market accounts are considered safe investments so long as funds are held at a financial institution insured by the FDIC at banks or the NCUA at credit unions. The FDIC insures funds held at banks up to $250,000 per depositor, for each account ownership category, in the event of a bank failure. The NCUA provides similar coverage for all federal and most state-chartered credit unions.

Money market accounts are also safe because they are not investment accounts. Your deposits are held securely until you need them, not invested in risky assets such as stocks. Except for fees and penalties, there is no way to lose insured deposits in an MMA.

Money market accounts have plenty of advantages and disadvantages. Here are a few.

Pros

Money market accounts offer a middle ground between savings and checking, providing the interest earnings of a savings account and the liquidity (check-writing and debit card capabilities) of a checking account. Here are some of the main pros:

• Flexibility. Many money market accounts come with checks and debit cards, allowing you to make withdrawals and transfer funds a certain number of times per statement period.
• Interest earnings. Like savings accounts, money market accounts tend to offer interest on funds you keep on deposit.
• Safety. Funds held in an account backed by the FDIC at banks or NCUA at credit unions are insured.

Cons

Here are a couple cons of money market accounts:

• Transaction restrictions. In the past, money market accounts have been subject to federal Regulation D limits, which capped certain types of withdrawals and transactions at six per month. These limits were suspended in response to the coronavirus pandemic, but individual banks and credit unions can still impose transaction limits and charge a fee for excess withdrawals.
• Interest rates. The rate of interest on a money market account isn’t fixed, meaning that it can fluctuate over time. If you’re looking for a fixed rate of return, you may want to consider certificates of deposit (CDs) or another product.

Money market accounts might be worth considering if you:

• Want to earn a higher APY on your savings
• Need easy access to your funds in case of an emergency
• Prefer a savings account that comes with checks or an ATM card
• Enjoy the flexibility of being able to deposit and withdrawal funds whenever you want

When To Use a Money Market Account

When you have enough money to meet minimum balance and deposit requirements for a money market account, it might be time to open one. Money market accounts may require anywhere from $500 to $5,000 to open and earn interest, which is significantly higher than most savings accounts. Hold off on opening one if you can’t meet these requirements.

Money market accounts can help you save for both short- and long-term goals, so you can find many opportunities to use them. If you can meet minimums comfortably, you might decide to open a money market account instead of or in addition to a savings account. Money market accounts are more flexible because they often come with a debit card or check-writing capabilities, giving you easy access to money you want to save but may need.

You can also use a money market account for secondary expenses, almost like an additional checking account. This way, you can maximize your interest while keeping cash close.

Money market accounts (MMAs) are a type of deposit account—offered by traditional banks, credit unions and online banks—that generally walk the line between checking and savings accounts. Like savings accounts, certain types of withdrawals and transfers are typically limited to six per statement cycle. But, as with checking accounts, you may have access to check-writing privileges and an ATM card.

In considering the best money market account for your needs, weigh the pros and cons. Here’s what to consider when shopping for a money market account:

• APY. One of the most important aspects of a money market account is the rate at which it earns interest or dividends, that is, its APY. Look for an account that offers a competitive APY while meeting your other needs.
• Fees. Watch out for monthly fees, excessive transaction fees and other fees that can eat into your returns.
• Minimums. Minimum deposit and balance requirements vary by institution. Generally, lower minimum requirements make it easier to maintain the account. Find an account with minimums that you can afford.
• Customer experience. Especially if you’re banking at an institution with limited branch access, make sure the bank or credit union offers customer care representatives that are accessible and responsive to your requests.
• Digital banking. Consider the online and mobile banking features you use most often. Then look for accounts at banks and credit unions that meet or exceed those expectations.
• Accessibility. Banks and credit unions vary on how they allow you to withdraw funds from a money market account. Some offer check-writing and debit card privileges. Although the Federal Reserve Board has suspended Regulation D, which restricts the number of transactions a saver can make per cycle from their savings account, each institution has its own policies. Ask about withdrawal options and the excess transaction fee of each institution before you open an account.
• Safety. Look for an account insured by the Federal Deposit Insurance Corporation (FDIC), which provides up to $250,000 in insurance per depositor, per bank, for each account ownership category, in the event of a bank failure. At credit unions, make sure the account is similarly insured by the National Credit Union Administration (NCUA).

You can open a money market account in person or online by following these steps:

1. Gather the required documentation, such as your Social Security number and proof of identity.
2. Compare money market accounts from different financial institutions to find the best rates and fees.
3. Complete the online application process with your chosen financial institution—or visit a branch if online applications aren’t available.
4. Fund your account via direct deposit, a check or a transfer from an existing account.

Confirm your account is open and in good standing by checking your money market account balance regularly.

Money market accounts offer a way to separate your savings from your checking account while still maintaining convenient access. Keep in mind that many banks still charge fees on money market accounts if you go over six monthly withdrawals, so they might not be worth it if you expect to exceed this limit.

Whether an MMA is worth it for you depends largely on your goals, but this type of savings vehicle offers many advantages over other kinds of interest-bearing accounts.

A money market account can be a worthwhile financial tool depending on your financial goals and circ*mstances. MMAs often offer higher interest rates compared to regular savings accounts, [which] can be advantageous if you’re looking to earn more on your savings while still transacting a moderate amount from the account. MMAs typically offer better liquidity than CDs, allowing you to withdraw funds without penalty. This can be beneficial if you need occasional access to your money or need to have some transactions into and out of your account.
– Christopher Naghibi, executive vice president and COO of First Foundation Bank

You may find that other savings products meet your financial needs better than a money market account. Below are some of the alternatives you may want to consider.

Money Market Account vs. Money Market Fund

Money market accounts are interest-bearing savings accounts through financial institutions, while money market mutual funds are low-risk investment funds available through brokers. A money market account is FDIC-insured, but a money market mutual fund is not.

Money Market Account vs. Savings Account

When comparing a money market account to a savings account, you’ll find that a money market account is a type of savings vehicle that often includes some checking account features like check-writing privileges and a debit card.

Money market accounts usually require a higher initial deposit and may have minimum balance requirements to earn the APY.

Money Market Account vs. Certificate of Deposit

Unlike a money market account, CDs are time-deposit accounts that generally lack liquidity. With these products, you agree to lock up your money for a certain period of time. In return, you earn a fixed rate of interest on your principal balance. Money market accounts come with variable rates that can change at any time. The better you understand the differences between money money accounts and CDs, the better savings decisions you can make.

Our research is sourced from the following financial institutions: ableBanking, Ally Bank, Axos Bank, BankDirect, BankPurely, BankUnitedDirect, Bethpage Federal Credit Union, BMO Harris, BrioDirect Banking, CFG Community Bank, CIT Bank, Connexus Credit Union, Discover, First Internet Bank, iGoBanking, Investors eAccess, Keybank, Memory Bank, My eBanc, NASA Federal Credit Union, Nationwide Bank, NBKC Bank, Northern Bank Direct, Northpointe Bank, Pacific National Bank, Pen Air Federal Credit Union, PenFed, PNC Bank, Presidential Bank FSB, Quontic, Redneck Bank, Regions Bank, SalemFiveDirect, Sallie Mae Bank, Synchrony Bank, TAB Bank, EverBank, TotalDirect Bank, U.S. Bank, UFB Direct, Virtual Bank, Vio Bank, Zions Bank and Zynlo Bank.

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