The Federal Reserve recently started reducing the federal fund rate. As a result, deposit rates – including the account of the Geldmarkt – started to fall. It is more important than ever to compare MMA rates and to ensure that you earn as much as possible on your balance.
The national average money market account rate is 0.64%, according to the FDIC. This may not seem that much, but remember that it was only 0.07%three years ago. So according to historical standards, the money marketing rates are still quite high.
Yet some of the top accounts currently offer more than 4% APY. Since these rates may not be much longer, consider opening a money market account now to take advantage of today’s high rates.
Here is a look at some of the best MMA rates available today:
View our choices for the 10 best money market accounts available today >>
In addition, the table below contains some of the best savings and money marketing rates that are available today at our verified partners.
The amount of the interest that you can earn from a money market account depends on the annual percentage (APY). This is a measure of your total income after one year when considering the basic interest rate and how often interest connections (money market account is usually combined daily).
Suppose you place $ 10,000 in an MMA at the average interest rate of 0.64% with daily composition. At the end of a year your balance would grow to $ 10,064.20 – your initial down payment of $ 10,000, plus $ 64.20 in interest.
Let’s now say that you choose a high -interest money market account that offers 4% APY instead. In this case your balance would grow to $ 10,408.08 in the same period, including $ 408.08 in interest.
In comparison with a traditional savings account, a money market account can be made with more restrictions. For example, money markets often require a higher minimal balance to earn the best interest rate and/or prevent reimbursements. Certain MMAs can also limit the number of recordings that you can make per month (usually six).
In general, there are no banks that offer an interest rate of 7% on money market accounts or another type of deposit account. That said, you may find local banks and credit associations with limited time promotion rates on certain accounts that can be as high as 7%. However, promotion rates at this level often apply to a limited balance.
Read more: Are there 7% interest rate bills more?
