Inflation continues to be on the minds of consumers, as prices continue to rise on everyday items. One of the best ways to combat rising costs is to park your money someplace where it outpaces inflation. And a money market account is one wise option to consider.
Money market accounts are interest-bearing accounts at a bank or credit union. These accounts usually have higher interest rates than traditional savings accounts and are safe options to save your money for short-term savings goals.
Money market accounts differ from traditional savings accounts, as they allow check-writing privileges and sometimes come with a debit card that can be used to access money at an ATM. Therefore, they provide a higher level of liquidity you likely won’t find in other high-yield savings accounts. The APY of a money market account includes compounding interest, which is usually credited monthly.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Top money market accounts right now
Use the tool to find the right Money Market Account for you. You can search by savings and Money Market Accounts, or filter to compare only Money Market Accounts.
Pros of money market accounts
- Offer higher interest rates than a traditional savings account
- Because some money market accounts have check-writing and debit card privileges, they offer a higher degree of liquidity compared to other savings accounts.
- Money market accounts are safe ways to grow your cash as most are FDIC or NCUA insured.
Cons of money market accounts
- Many banks require a minimum deposit to open an account, and also have minimum balance requirements as well.
- The return on money market accounts can be lower historically than investing your money in the stock market.
- The interest rate on money market accounts is variable, meaning if the Federal Reserve cuts interest rates again, your money market rate could drop.
- Having easy access to savings can encourage some to spend more than they ought to.
Why open a money market account?
Opening a high-yield savings account, a CD or money market account are all great options to save your cash. If you plan on keeping your cash stored away where it can remain untouched until a future date, then a high-yield account or CD is the better choice.
If, on the other hand, you think you might need to make a purchase using your savings, like in the case of an emergency, a money market account could be the better option. Just make sure you’re able to meet any minimum balance and initial deposit requirements associated with the account, and that it comes with a competitive interest rate.
Here are some of the best Money Market accounts. All are FDIC-insured banks or NCUA credit unions, letting you keep your savings safe:
Account | APY | Min. Opening Deposit |
|---|---|---|
4.50% | $100 | |
4.50% | $1,000 | |
4.46% | $100 | |
4.40% | $500 | |
4.32% | $1,000 | |
4.30% | $2,500 | |
4.25% | $50 | |
4.25% | $5,000 | |
4.01% | $0 | |
3.61% | $100 |
Related Content
-
Four Roth IRA Pitfalls Your Adviser May Not Tell You AboutYou may not be bound for Mordor, but Roth IRA pitfalls could upend your retirement if you're unaware of them.
-
Walmart+ vs. Amazon Prime: Which One Is the Better Deal?Walmart+ and Amazon Prime both promise free shipping, exclusive deals, and a suite of add-on services. But which one should you get, if any?
-
These Four Books Explore How to Leverage Our Outrage PositivelyThe authors offer some powerful tools to help us find solutions to discord rather than remaining silent or blowing up in anger.
-
Financial Pitfalls to Avoid in Your 30s, 40s and 50sAs you pass through each decade of working life and build wealth for retirement, watch out for the financial traps that can hinder your progress.
-
Trump's Tariffs Could Spike Gas Prices: Here’s How to SavePresident Donald Trump's tariffs against Canada could lead to higher prices at the pump. Here are ways to save.
-
Borrowing Against Your Life Insurance: How It Works and What to ConsiderUnlock quick access to cash by borrowing against your life insurance policy — without credit checks or strict repayment terms.
-
Four Action Items for Federal Employees With $2M+ SavedIf you can't stand the chaos, maybe you can walk off into the sunset of retirement. Here are some thoughts on how to figure out if that would work for you.
-
How to Help Accelerate Support for Women's EqualityIt's International Women's Day, and the theme this year is Accelerate Action. Here's how we can all pitch in to help drive gender parity.
-
How to Help Shield Your Retirement From InflationPicking the right investments at the right time can help ensure inflation won't flatten your retirement savings. Here are some tips.
-
How Trump’s Tariffs Could Impact Your Grocery BillTariffs at the checkout: Preparing for higher grocery bills and how to manage them.
