Savers looking to put money aside for the short term have many options, and a money market account is one of the best.
A money market account can help you save for a variety of goals, from growing an emergency fund to saving for a new home and everything in between.
Each bank and credit union is different, and not all of them offer the most competitive interest rates on MMA accounts.
In this article, we’ll cover the best money market rates available and give you some pointers to choose the right account for your needs.
Best Money Market Rates For April 18, 2024
| Product | APY | Min Deposit |
|---|---|---|
| First Internet Bank Money Market Savings |
up to 5.48% APY | $100 |
| Vio Bank Cornerstone Money Market Account |
5.30% APY | $100 |
| Pacific Western Bank Pacific Western MMA |
5.27% APY | $1 |
| Ponce Bank Money Market Deposit Account |
5.26% APY | $0 |
| CFG Community Bank Money Market |
5.25% APY | $1,000 |
| UFB Direct UFB High Yield Money Market |
5.25% APY | $0 |
| Patriot Bank High Yield Money Market Account |
5.22% APY | $1 |
Best Money Market Accounts for April 2024
Here are the top banks offering the best money market accounts you can open today:
- PacWest Bank: 5.25% APY
- Harborstone Credit Union: 5.25% APY
- American First Credit Union: 5.26% APY
- UFB Direct: 5.25% APY
- Hanover Bank: 5.26% APY
- Ponce Bank: 5.15% APY
- Vio Bank: 5.30% APY
- The Atlantic FCU: 5.01% APY
- Zynlo Bank: 5.00% APY
- Quontic Bank: 5.00% APY
- Prime Alliance Bank: 4.50% APY
- Sallie Mae Bank: 4.65% APY
- TIAA Bank: 4.50% Intro APY
- Ally Bank: 4.20% APY
- Discover® Bank: Rates up to 4.05% APY
1. PacWest Bank
- Product: Money Market Deposit Account
- APY: 5.25%
- Minimum Deposit: $1
PacWest, or Pacific Western Bank, is one of the largest banks in California, with a variety of deposit accounts, loans, credit cards, and financial planning services.
It also offers one of the highest money market APYs available. Its promoted 5.25% APY applies to all account balances, with no tiers or ongoing balance requirements.
The account has no management fees and requires a $1 minimum deposit. You can apply on Raisin and enjoy easy access to your funds around the clock There are currently no transaction limits on any of Raisin’s MMA accounts.
Funds in your PacWest MMA account are FDIC-insured for up to $250,000 per depositor.
2. Harborstone Credit Union
- Product: Money Market Deposit Account
- APY: 5.25%
- Minimum Deposit: $1
Founded in 1955, Harborstone Credit Union offers an NCUA-insured money market deposit account with a minimum $1 opening deposit.
Interest compounds daily and is paid monthly. The account doesn’t charge monthly maintenance fees and offers an APY 8.6x higher than the national average.
Savers have 24/7 access to their funds online, and the credit union focuses on helping members with financial literacy to reach their financial goals.
3. American First Credit Union
- Product: Money Market Deposit Account
- APY: 5.26%
- Minimum Deposit: $1
American First Credit Union was founded in 1952 to serve grocery store employees. Today, the credit union offers a competitive lineup of banking, business, and financial advising products to bankers nationwide.
AFCU has partnered with Raisin, a reputable fintech platform, to offer some of the most competitive interest rates in the industry. The account provides a 5.26% APY with no strings attached. To earn the full APY, you just need to make a $1 minimum deposit.
You can easily apply, join AFCU, and manage your account directly on the Raisin platform.
4. UFB Direct
- Product: UFB High Yield Money Market Account
- APY: 5.25% APY
- Minimum Deposit: $5,000
UFB Direct’s Priority Money Market Account currently offers up to 5.25% APY at all tiers. Just note that rates can change daily without prior notice.
While there are no ongoing balance requirements, you are required to make a minimum opening deposit of $5,000. The $10 monthly maintenance fee will be waived if you maintain a balance of more than $5,000.
UFB Direct is a Member FDIC and your account is secured with fraud monitoring, SSL encryption, and automatic logouts, so you have several layers of protection to depend on.
UFB also offers 24/7 access to your account funds and banking tools, like mobile deposit and SMS banking for when you aren’t connected to the internet.
Learn More:
5. Hanover Bank
- Product: Money Market Deposit Account
- APY: 5.26%
- Minimum Deposit: $1
Hanover Bank is a New York-based bank that was founded in 2009. While it’s newer and less recognizable than some of its competitors, the bank is legitimate and FDIC-insured.
Hanover Bank specializes in serving New Yorkers and New Jersey residents, but its competitive money market account is available nationwide.
When you open and fund an account with at least $1, you’ll immediately earn the full APY of 5.26%. The account is offered through the Raisin platform, so you can count on easy account digital account management on the go.
6. Ponce Bank
- Product: High-yield Money Market Deposit Account
- APY: 5.15%
- Minimum Deposit: $1
Founded by Puerto Rican migrants in 1960, Ponce Bank is a Community Development Financial Institution (CDFI) committed to providing banking and personal finance products to underserved communities.
In addition to its full-service financial products for New Yorkers, Ponce Bank is one of our top picks for MMAs nationwide. Its High-Yield Money Market Deposit Account currently offers an APY of 5.15%, which is more than nine times the national average.
You can apply for the account on Raisin in a few minutes with a $1 minimum deposit. There are no management fees or other minimum requirements, and your funds are FDIC-insured.
7. Vio Bank
- Product: Cornerstone Money Market Savings Account
- APY: 5.30% APY
- Minimum Deposit: $100
Vio Bank is the digital banking division of MidFirst Bank, one of the largest private banks in the U.S.
Vio Bank’s Cornerstone MMA has a 5.30% APY on all account balances, along with a lineup of useful free features.
There’s no monthly fee unless you opt for paper statements, which cost $5 per month. Accountholders are allotted six free withdrawals each month, with a fee for additional transactions.
You can open the account online with an initial deposit of $100. The account comes with the ability to build a savings plan that you can leave on autopilot with automated transfers.
Learn More:
8. The Atlantic Federal Credit Union
- Product: Money Market Deposit Account
- APY: 5.01%
- Minimum Deposit: $1
The Atlantic Federal Credit Union was founded during the Great Depression to provide accessible financial products to the communities it served, a mission it upholds today.
Among its lineup of bank accounts, the credit union offers a rewarding money market deposit account.
The account has no explicit transaction limits, no monthly fees, and no tiers for earning interest. With a $1 deposit, you’ll begin earning 5.01% APY on all your account balances.
Funds in your account are NCUA insured, and you can join the Atlantic FCU directly on Raisin for free.
9. Zynlo
- Product: Money Market Account
- APY: 5.00%
- Minimum Deposit: $0
Zynlo Bank is a fully digital bank aimed at providing competitive APY with no red tape on its high-yield savings, spending, and MMA accounts.
Zynlo’s money market account has no account minimums, fees, or penalties, and you can make unlimited transactions. There are also no tiers for earning interest, so every dollar you deposit will earn 5.00% APY.
Zynlo’s accounts are backed by PeoplesBank in Massachusetts, so your funds are FDIC and DIF-insured.
The bank also offers 24/7 live phone support, an added perk that not all banks and credit unions provide.
10. Quontic Bank
- Product: Money Market Account
- APY: 5.00% APY
- Minimum Deposit: $1
Quontic Adaptive Digital Bank offers 5.00% APY on its Money Market Account. While the account used to require you to meet steep balance requirements to earn the highest APY, now it’s offered on all balance tiers.
There is a minimum opening deposit requirement of $100, and you’ll be limited to six withdrawals per statement cycle.
APY is earned on the account’s daily balance and interest is credited to your account every month at the end of your statement cycle.
You can apply for a Quontic account in a few minutes and have access to several customer service options if you need assistance along the way.
Learn More:
11. Prime Alliance
- Product: Personal Money Market
- APY: 4.50%
- Minimum Deposit: $0
Prime Alliance is a community bank headquartered in Utah with a range of competitive online bank accounts,
Its Personal Money Market account offers solid APY with minimal requirements or fees. There are no monthly maintenance fees or deposit requirements, and you earn the high interest rate regardless of your account balance.
Just note that the stated APY is variable, so it could change at any time.
Prime Alliance allows you to make unlimited deposits and up to six withdrawals per monthly statement cycle.
This account is FDIC-insured, and you can apply and fund your account completely online.
12. Sallie Mae
- Product: Money Market Account
- APY: 4.65% APY
- Minimum Deposit: $0
Sallie Mae is primarily known for its student loan services, but it’s also a popular money market account provider. The Sallie Mae money market account has a 4.65% APY.
There are no minimum balance requirements and no monthly fees, making it a very accessible option overall. You can also trust that your funds are protected with FDIC insurance.
The account includes check-writing privileges and mobile access to help you manage the account on the go. Transfers are free and can be made easily on Sallie Mae’s user-friendly website.
13. TIAA Bank
- Product: Yield Pledge Money Market
- APY: 4.50% Intro Rate
- Minimum Deposit: $1
While its ongoing rates are less competitive, TIAA Bank’s Money Market account offers a promising introductory APY.
When you open and fund a new MMA with TIAA Bank, you’ll earn an introductory APY of 4.50% for one year. After that, the ongoing rate is based on your account balance and goes as high as up to 4.30% APY.
The account has no monthly fee or minimum deposit requirement. You can fund your new account by mail, mobile deposit, or online transfer to get started.
If you’re worried about safety, the bank also carries a web safety guarantee that promises 100% protection for any funds lost due to unauthorized online access or a mistake on the bank’s part.
Learn More:
14. Ally Bank
- Product: Money Market Account
- APY: 4.20% APY
- Minimum Deposit: $0
One of our highest-rated online banks, Ally is known for offering rewarding high-yield accounts, and its money market account is no exception.
With a 4.20% APY on all tiers, you’ll get the full rate, regardless of how much money you have in your account.
There are no minimum balance requirements or maintenance fees. The account also features unlimited withdrawals from all Allpoint ATMs with no fees and up to six withdrawals per month. You can deposit checks from your phone as well.
The account can also be opened in the name of a trust, a unique feature not all of Ally’s competitors offer.
Learn More:
15. Discover
- Product: Discover® Money Market Account
- APY: Up to up to 4.05% APY
- Minimum Deposit: $2,500
The Discover® Money Market Accounts offer APYs as high as up to 4.05% APY. You’ll need a balance of $100,000 or more to receive the higher interest rate and can earn high APY on all balances under $100,000.
There’s no minimum balance and no fees for most actions, including NSF (insufficient funds) or excessive transactions. Instead, you’re limited to six transactions or withdrawals per month.
You also get access to Discover’s mobile banking app, including features such as mobile check deposits, an ATM locator, and the ability to freeze your debit card. You can log in with Face ID or your fingerprint for added security.
Learn More:
What is a Money Market Account?
A Money Market Account (MMA or MMSA) is a type of savings account that includes similar features to some types of checking accounts. These features may include the ability to write checks and use a debit card, but this differs from one bank to the next.
MMAs also come with a generous APY, making them one of the best savings options. The interest rate is typically higher than what checking accounts offer. That said, it could be lower than what you’d get by opening a high-yield savings account.
Each bank is free to offer different rates on its accounts. That’s why it’s important to assess your financial needs, then see which type of account is best suited to meet your goals.
Pros and Cons of Money Market Accounts
Money market accounts have unique benefits and drawbacks, with some characteristics of both a high-yield savings account and a checking account.
Here are some of the biggest advantages and disadvantages to consider:
Pros:
- MMA account balances earn interest.
- Many MMAs let you write checks and withdraw funds.
- MMAs are FDIC or NCUA insured.
Cons:
- Money market account rates are variable and often less competitive than CDs and savings accounts.
- Some banks impose transaction limits and penalize you for excess withdrawals.
Money Market Account Alternatives
If you’re thinking of opening a money market account, you should also consider the alternatives. Here’s a look at how other savings accounts compare to money market accounts.
Money Market Accounts vs. Savings Accounts
A money market account earns interest like a high-yield savings account, but it often comes with checking account features, too, like a debit card and checks. Both options are more rewarding than traditional savings accounts, offering higher rates.
MMAs tend to have a higher minimum balance or opening deposit requirements than standard savings accounts.
Money Market Accounts vs. Certificates of Deposits
Money market accounts are designed to be accessible, while CDs (certificates of deposit) are longer-term investments. With a CD, you agree to let your money sit for a set period of time, getting a fixed interest rate in return. If you withdraw early, you may be penalized.
Money market accounts are liquid, but they come with variable interest rates that are sometimes lower than CDs.
Money Market Accounts vs. Money Market Funds
While their names are similar, money market accounts and money market funds are different products.
Money market accounts are offered by banks or credit unions, and they’re insured by the FDIC or NCUA for up to $250,000. Meanwhile, money market funds are offered by brokers and do not come with FDIC insurance.
How to Choose the Best Money Market Account for You
While the accounts with the best rates might automatically seem like the right choice, this isn’t always the case.
Here are a few more aspects of MMAs to consider as you weigh which account is best for you.
1. Requirements
One of the first things to check is whether the account has minimum opening deposits and minimum balances. While many accounts have low barriers to entry, others impose hefty requirements. Making sure you can meet these minimums is the first step.
2. Fees
Bank fees can eat into your interest (and sometimes your savings, too), so familiarizing yourself with the bank’s fee schedule is essential. Costs like monthly maintenance fees can often be avoided, as long as you meet the bank’s requirements. Make sure you can cover these expenses before choosing an account.
3. APY (Annual Percentage Yield)
Once you’re sure you can meet the requirements and avoid most or all maintenance fees, the APY rate is the next important factor to consider.
The higher the APY rate, the more interest you’ll make on your money. Check to see if the APY rate is tiered, then try to plan how much money you’ll be able to save.
4. Access
Most MMAs limit the number of withdrawals you can make per month while others do not. Think about why you will use the account then decide if the allocated limits will meet your needs or if you should find a bank with fewer restrictions.
5. Digital Banking
Having access to user-friendly online banking and mobile banking features is incredibly important. Check what functionality the bank offers through its online banking portal or mobile app. Make sure it’s functional enough for you to carry out your banking needs.
6. Insurance
Making sure that your account is insured can save you from a lot of trouble down the line. While it’s unlikely that your bank or credit union will go bust, it’s not unheard of either.
If your account is insured, you can rest easy knowing that your money is covered no matter what happens to your financial institution.
Banks insure their accounts through the FDIC (Federal Deposit Insurance Corporation). In contrast, credit unions insure their accounts through NCUA (National Credit Union Administration). In both cases, accounts are usually insured up to $250,000.
How to Open a Money Market Account
While the process can vary from one bank or credit union to the next, here are the general steps you’ll need to take to open an MMA account online:
- Start the application: Once you’ve chosen a bank, visit their website to begin the account opening process. Look for a prominent button or link that says “Open an Account” or something similar. Click on it to get started.
- Provide personal information: The bank will require some personal information to verify your identity. This may include your full name, date of birth, social security number, government-issued ID, and contact details. Have this info on hand to speed up the application process.
- Agree to terms and conditions: Before proceeding, you’ll need to review and agree to the bank’s terms and conditions. This will include details about account fees, withdrawal limits, and other important information. Ensure that you understand and agree to the terms before moving forward.
- Fund your account: Once you’ve completed the initial steps, you’ll likely be prompted to fund your money market account. Depending on the bank, you may be able to link an existing bank account for a transfer or deposit a check by mail or mobile deposit.
Frequently Asked Questions
Is a money market account worth it?
Money market accounts are a low-risk option that allows you to earn high-interest rates in a secure deposit account.
While an MMA shouldn’t replace your checking account, it’s a smart addition for most people to achieve shorter-term savings goals.
How does APY work?
APY, or Annual Percentage Yield, refers to the percentage of your money the financial institution will pay you. APY fluctuates because banks use the Federal Fund Rate as the basis of their rate. If the federal rate rises or falls, the APY rate will go up or down accordingly.
Banks set APY over one year. How banks work this out can change from one institution to another. That’s why the compounding period is essential.
When a rate compounds daily, the bank divides the rate by the number of days, and that rate applies daily. The bank will then pay you the accrued interest according to the payment frequency (generally once a month).
Once the interest is paid to the account, provided that you didn’t withdraw any money, the bank will use the new balance (principal + interest paid) to work out compound interest.
Can you lose your money in a money market account?
No, you can’t lose your money in a money market account. That’s because the bank doesn’t invest your money in risky markets such as stocks and forex, so your money is safe.
As an added layer of protection, because your account is insured, you can rest easier knowing that you are covered should something happen to the bank or credit union where you hold your account.
What is Regulation D?
Regulation D is a regulation by the Federal Reserve Board that limits the number of withdrawals from savings accounts to 6 per month. Since money market accounts are a type of savings account, this rule can apply even to these accounts.
On April 24, 2020, the Board of Governors of the Federal Reserve System deleted this rule, and many banks followed suit.
Banks that still apply this rule will charge a few for excessive transactions, which means more than six transactions per month. You might even face account closure if you consistently make more than the allowed number of transactions.
Which bank has the best money market account?
No one MMA account will be the best for everyone. That is especially true since everyone has unique needs and requirements. To choose the best MMA account for you, consider its:
- APY
- Minimum balance requirements
- Insurance
- ATM fees and maintenance fees
- Account features
- Customer service
Where can I get the most interest on my money?
Money Market accounts are known to offer high-interest rates. Many online banks provide MMAs with interests that are typically higher than those offered by brick-and-mortar bank money market accounts.
Because online banks tend to have lower overheads, they can provide better rates to their customers, especially on higher balances.
Credit unions also tend to offer APY rates that are higher than average. It’s essential to keep in mind that credit unions require a membership, which may have some restrictions. Always check the requirements carefully before committing yourself to one account.
Is a money market account a good idea?
As far as deposit accounts go, a money market account offers some of the best interest rates with little downside potential. That’s because you’re saving money in an insured account. Do keep in mind that many MMAs come with restrictions, including the number of withdrawals you can make in a given month.
One other option that you might want to consider is an online savings account to reach your financial goals. These accounts also tend to come with good interest rates, but you might have to give up on some perks that come with MMAs, such as checks and ATM cards.
Our Methodology
The BankBonus team is dedicated to providing our readers with thorough, well-researched, and honest recommendations.
We’ve researched and reviewed dozens of banks, credit unions, and online financial platforms. To determine the best money market accounts, we considered each bank’s financial standing and reputation among consumers and industry experts.
We also ensured that each financial institution is backed by FDIC or NCUA insurance.
Additionally, we compared each MMA account’s APY, account minimums, fees, transaction limits, accessibility, and mobile banking features.
This guide is regularly updated to reflect current account terms and features.
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