Money Market Interest Rates Today: April 26, 2024 — Earn Up To 5.12%

Current Money Market Rates

As of today, the highest money market rate is 5.12% compared to a national average rate of 0.60%.

Here are today’s money market account rates:

• Average APY: 0.60%
• Highest Rate: 5.12%

Source: Curinos. Data accurate as of April 25, 2024. Rates are based on a $10,000 minimum deposit amount.

What Are Money Market Rates?

Interest rates for money market savings accounts are often called money market rates. These earnings are typically credited as a percentage of your savings balance on a daily or monthly basis. Money market rates change every day. Banks and credit unions that pay tiered rates often reserve the best rates for the largest balances.

An interest rate represents the earnings made solely on your account balance. A yearly rate of return that factors in compound interest is called your annual percentage yield (APY). Compound interest is interest that accrues on the interest as you earn it.

How Does a Money Market Account Work?

Money market accounts 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 FDIC for banks and the 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

To open a money market account, start by researching accounts to choose the option with the best rates for the amount you plan to save. Make sure you can meet opening and ongoing balance requirements to earn interest and avoid fees. In addition to rates and minimums, consider account fees, withdrawal limits and other features to find the best fit.

When you’re ready to open an account, you can submit an application online or at a bank branch. The application will ask for personal information, including your name, address, Social Security number, employment status and income. You’ll also need to provide a government-issued ID. Once your application is approved, you can make your first deposit. Be sure to transfer at least the minimum opening deposit required.

Money Market Account vs. Savings Account

Money market accounts resemble checking accounts in some ways but are most similar to savings accounts. Like savings accounts, you earn interest on your balance and can add or remove funds at any time. Your balance is insured and easily accessible in 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 are usually more flexible than savings accounts because they may offer debit cards and check-writing capabilities. This makes them a little like checking accounts, but unlike checking accounts, money market accounts often limit monthly transactions.

Is a Money Market Account Worth It?

A money market account is worth it if you want to save now but have easy access to your cash later. The accounts are safe options for putting away money because they’re FDIC- or NCUA-insured and won’t lose value. As long as you can meet deposit and balance requirements to avoid fees and earn interest, you’ll be in good shape with a money market account.

If you can’t fulfill the requirements for earning the highest rates, or if a money market account imposes fees that exceed your earnings, an MMA might not be worth it. Explore other savings accounts for smaller balances, or consider interest-bearing checking accounts if you frequently need to access your funds.