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.
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.
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.
Pros of money market accounts
- Offer higher interest rates than 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.
- Interest rates for money market accounts can be lower than those of high-yield savings accounts or CDs.
- The interest rate on money market accounts is variable, meaning it fluctuates with market conditions.
- 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 CD or high-yield account 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.
First Internet Bank
APY: 3.77%-5.48%
Minimum deposit: $100
Brilliant Bank
APY: 5.35%
Minimum deposit: $100
Vio Bank
APY: 5.30%
Minimum deposit: $100
CFG Bank
APY: 5.25%
Minimum deposit: $1,000
Harborstone Credit Union
APY: 5.25%
Minimum deposit: $1
First Financial Northwest Bank
APY: 5.25%
Minimum deposit: $1
American First Credit Union
APY: 5.24%
Minimum deposit: $1
UNCLE Credit Union
APY: 5.23%
Minimum deposit: $1
Republic Bank of Chicago
APY: 5.21%
Minimum deposit: $2,500
UFB Direct
APY: 5.15%
Minimum deposit: $0
BluPeak Credit Union
APY: 5.00%
Minimum deposit: $100
Quontic Bank
APY: 5.00%
Minimum deposit: $100
Merchants Bank of Indiana
APY: 5.00%
Minimum deposit: $50
Northern Bank Direct
APY: 4.95% (deposits up to $250,000)
Minimum deposit: $5,000
All America Bank
APY: 4.75% (deposits up to $100,000)
Minimum deposit: $500
Related Content
-
Stock Market Today: Stocks Rally Despite Rising Geopolitical TensionThe main indexes were mixed on Tuesday but closed well off their lows after an early flight to safety.
-
What's at Stake for Alphabet as DOJ Eyes Google's ChromeAlphabet is higher Tuesday even as antitrust officials at the DOJ support forcing Google to sell its popular web browser. Here's what you need to know.
-
Six Ways to Optimize Your Charitable Giving Before Year-EndAs 2024 winds down, right now is the time to look at how you plan to handle your charitable giving. The sooner you start, the more tax-efficient you can be.
-
Structured Settlement Annuity vs Lump-Sum Payout: Which Is Better?As the use of structured settlement annuities grows, it can be tough to decide whether to take the lump sum to invest or opt instead for guaranteed payments.
-
What to Do as Soon as Your Divorce Is FinalDon't delay — getting these tasks accomplished as soon as possible can help you avoid costly consequences.
-
How to Fight Inflation's Hidden Threat to Your SavingsIf higher prices are putting your savings goals on hold, you're in danger of financial erosion. Fortunately, several strategies can help stop the spread.
-
Seven Luxury Places to See the Northern Lights This WinterThe northern lights will be at their most captivating this winter. Fancy making them even more magical? From hotels on ice to glass cabins and mountain yurts, here are seven places to see the northern lights with luxury winter stays.
-
Does a Farm Need a Different Homeowners Insurance Policy?Homeowners insurance is all about providing the right tool for the right exposure, and life on the farm comes with different risks than life in the city.
-
How One Caregiver Is Navigating a Loved One's DementiaShe's spent many hours doing research and speaking with other caregivers to find her way to resources designed to help caregivers.
-
October CPI Report Hits the Mark: What the Experts Are Saying About InflationCPI While the current pace of rising prices appears to have leveled off, the expected path of rate cuts has become less certain.
