Which money market account is best

Barclays Online Savings Account, 0. Citizens Access Online Savings Account, 0. We took a close look at over 70 financial institutions, including the largest U.

We rated them on criteria including annual percentage yields, minimum balances, fees, digital experience and more. Look for a money market account with a high rate and no monthly fees. Accounts featured on this page have high rates and low fees. No, rates are variable and can change over time.

The money market accounts featured on this page are among those with the most consistently highest rates. You can open a money market account either online or in person. For a joint account, everyone wanting access to the account must provide this information and valid forms of identification.

The bank will often require you to transfer money into the new account right away. You can do that by depositing cash or checks, or through a wire transfer. Show best offers available in. Summary of Best Money Market Accounts of Learn more. Read review. APY 0. View details. Sallie Mae Money Market Account. Select Region. United States. United Kingdom. All ratings are determined solely by our editorial team.

Rob Berger, Benjamin Curry. Editor, Editor. Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations. Read more. Best Ofs. Expense Ratio 0. Why We Picked It. Treasury Repurchase Agreement: 1. Government Obligations: Treasury Bills: Tresury Debt: 2. S Treasury Repurchase Agreement: 2. Sovereign Debt: 5.

Treasury Repurchase Agreements: Government Agency Repurchase Agreements: 3. Treasury Debt: 2. Money market funds can be categorized into three groups: prime, government and tax-free.

Prime money market funds are typically invested in short-term corporate and bank debt securities. Government money market funds invest at least Tax-free money market funds are invested primarily in municipal bonds or debt issued by other entities whose interest payments are exempt from federal income taxes. We noticed a few patterns when comparing the best money market mutual funds on our list.

Overview: Sallie Mae is mainly associated with student loans, but it also provides a range of savings products for consumers. The bank offers money market and high-yield savings accounts and CDs. Perks: No minimum deposit is required to open a Sallie Mae money market account. Checking-writing privileges are included. Order your checks when you open your account. Beginning savers unable to maintain that balance may want to consider options with lower minimum balance requirements.

Overview: Navy Federal has been around since It has more than 9 million members. Marines, National Guard and Space Force, veterans and retirees are some that are eligible to join this credit union.

Also, some consumers might not meet the membership requirements. In addition to its money market account, CIT Bank offers two savings accounts. CIT Bank offers a wide variety of bank accounts, unlike some other online banks.

Its deposit products include high-yield money market account, checking, savings and CDs. In addition to competitive rates on banking products, TIAA Bank also offers mobile banking and online tools.

Perks: One of the biggest perks TIAA Bank offers is its "yield pledge," which adjusts the rate its pays on its money market account to ensure its among the top 5 percent of competitive accounts. The account also has no monthly fee and allows for mobile check deposits.

Overview: Synchrony Bank offers a money market account, a savings account and CDs. Perks: The Synchrony Bank money market account has check-writing privileges. You just need to ask the bank for checks once you deposit money into your account. Also, you can get an ATM card for your money market account. What to watch for: ATM fees outside of the U.

Overview: Discover Bank is an online bank that offers a variety of products. The best way to choose a money market account is to compare APYs and minimum balance requirements. If you want to physically walk into a bank and talk to a banker about your money market account, choose a bank that has brick-and-mortar locations.

An online bank may offer convenient customer service options through its phone availability, and it may have secure messaging on its website or mobile app. It may also allow live chats with a customer service representative on its website. A money market account is a type of savings deposit account that can be found at banks and credit unions. Money market accounts work like a savings account, where you can deposit and withdraw money into it.

You will also earn interest on the money you deposit into a money market account. Money market accounts generally let you withdraw money, but banks may limit withdrawals and transfers. Unlike most savings accounts, money market accounts may have check-writing privileges. You also might have a debit card and be able to access money at an ATM. High-rate money market accounts may pay a higher interest rate than traditional savings accounts, but their minimum deposit and balance requirements may be higher.

Money market accounts typically have a few advantages, including a high yield, check-writing privileges, and ATM access. They may have some disadvantages, though. For example, some institutions might limit the number of withdrawals or transfers per statement cycle, and you may be able to find a high-yield savings account that has a higher yield. Money market accounts might have a higher minimum balance requirement than a high-yield savings account.

But you should be able to find a money market account with no minimum balance requirement or a low one. This is especially true at online banks.

Money market accounts may come with checks and a debit card, which distinguishes them from high-yield savings accounts. The check-writing capability of money market accounts provides a degree of flexibility and liquidity often not found in other savings accounts.

Like a traditional savings account , there's no set term for maturity with a money market account — you can park cash for an unlimited amount of time. Keep in mind that you may be required to make a transaction every so often in order to prevent your account from going dormant.

Check with your bank for its policies. That said, safety is still a top feature of these financial tools. Interest rates determine how much interest and income your money market account earns.

When the Federal Reserve raises or lowers the federal funds rate, it tends to affect the yields on money market accounts. When the Fed raises rates, savers with high-yielding accounts tend to receive higher APYs. From to , the Fed raised rates nine times. This helped many savers at high-yielding online banks earn substantially higher APYs.

But starting in , the Fed started lowering rates. In March , the U. This sent the federal funds rate down to zero — unwinding all nine of the past rate increases. These rate cuts have caused some banks to lower their APYs on savings accounts and money market accounts. Interest is usually credited on a monthly basis on money market accounts. The APY on an account includes the effects of compounding during the year.

So, when you compare APYs, you can tell which account is going to help your money grow the most. Always compare APYs and not rates.

You can use our compound interest calculator to determine your potential earnings on a money market account. Money market accounts typically credit interest monthly. The average interest rate on a money market account is currently 0.

Yet some banks are offering about seven times that. That makes it crucial to shop for the best deal when you're searching for a money market account. It's important to remember that institutions can change their interest rates at any time, pushing returns higher or lower depending on the market.

Most money market rates are variable, not fixed. That means the rate and APY you receive can rise or fall as market conditions change. Affinity Plus also provides you with both paper checks and a debit card, giving you easy access to your savings. What to look out for: Interest. It's also worth noting that interest compounds monthly, while many competitors' rates compound daily, giving you the opportunity to build more wealth.

Why it stands out: Many money market accounts offer a higher APY to accounts with higher balances. Typically, there's a big difference between most companies' highest and lowest rates. But CFG's lowest rate is already higher than many competitors' top rates.

CFG's best rate is one of the highest you'll find today. What to look out for: Minimum opening deposit and account balance. Also, remember that money market account rates can fluctuate with the federal funds rate.

Although CFG's rate is the best now, that may not always be the case. The BBB measures trustworthiness by looking at responses to customer complaints, honesty in advertising, and transparency about business practices.

Ally has the lowest grade on our list due to its high number of complaints on the BBB website. He was sentenced to three years in prison. Personal Finance Insider's mission is to help smart people make the best decisions with their money. We understand that "best" is often subjective, so in addition to highlighting the clear benefits of a financial product or account — a high APY, for example — we outline the limitations, too.

We spent hours comparing and contrasting the features and fine print of various products so you don't have to. There are a lot of money market accounts out there. Through our research, we've found that the best money market accounts are offered by banks with a strong online presence and mobile access.

We reviewed money market accounts at nearly two dozen institutions to identify the strongest options. We also cross-referenced our list against popular comparison sites like Bankrate and NerdWallet to make sure we didn't miss a thing. While interest rates are an important aspect of any money market account, several offer the same annual percentage yield APY. To differentiate between them, we also considered minimum deposit and balance requirements, overdraft and excess transaction fees, ability to access funds, and any other standout features.

Money market accounts typically make it easier to access your money than high-yield savings accounts. Many come with check-writing privileges, debit cards you can use at ATMs, or both. Money market accounts and high-yield savings accounts both offer more interest and nearly as much flexibility as traditional checking or savings accounts.

Are you on the fence about whether to open a money market or high-yield savings account? You could choose a company and compare its money market and savings accounts. One may have a higher rate, lower initial deposit, or lower monthly fee.

You may want to work with a specific bank or credit union, but it only offers either a high-yield savings account or a money market account, not both. This limitation could help you make a decision, too. Yes — a money market account has very few downsides, if any.

The only time a money market account may not be worth it is if you're paying excessive maintenance fees that eat into your interest payments or you find yourself restricted by the monthly transfer limit or time it takes for your money to get to your checking account. However, rates fluctuate along with the federal funds rate, so banks that offer the highest APY now might not down the road, and ones with lower rates now could hike their rates later.

Generally you'll find the best interest rates at online banks. If you're more comfortable banking with a brick-and-mortar, you can usually open a money market account there, too — just know that you may not be getting the best possible interest rate. Interest rates on money market accounts closely follow the federal funds rate. That is to say, rates are variable and can change multiple times per year at the whim of the Federal Reserve. The Fed meets eight times a year and decides whether to increase, decrease, or maintain interest rates.

If the Fed cuts rates, the APY on your savings account can drop within days. When rates are lower, you won't earn as much interest on your savings. But that doesn't mean you shouldn't save at all. When interest rates inevitably go back up, you'll see a greater return on your money than if you started from scratch.

Because the Fed spent several years raising rates since the Great Recession , it cut interest rates three times toward the end of in an effort to regulate the economy and side step another recession, and it slashed rates twice in Although rates are at an all-time low, they will eventually increase and continue to fluctuate over time.

To learn more about what makes a good money market account and how to choose the best fit, four experts weighed in:. Here's what they had to say about money market accounts. Some text may be lightly edited for clarity. Money market accounts should also give you a way to access your funds, whether it's a debit card, paper checks, or access to Zelle. Whichever one the bank offers, make sure it's the right fit. For example, if a bank only offers paper checks, but you make all your payments digitally, then that money market account probably isn't for you.

I don't know if their fees are really that competitive versus high-yield savings accounts. For most people, I think what makes sense is a high-yield savings account for your emergency fund and any short-term goals.

If you want to have any transactions, that automatically takes out CDs. Then you're stuck between the high-yield savings and the money market account.