Savers looking to put money aside for the short-term have many options, with money market accounts being one of the best. Show
A money market account can help you in several ways, from growing an emergency fund, to saving for a new home, and everything in between. Since different banks and credit unions offer a wide range of accounts, there are several other things to consider in addition to who offers the highest rates. In this article, we’ll cover the best money market account rates available and how to choose the best account for you. Best Money Market Rates For November 21, 2022*As determined from the banks and credit unions which we monitor. Does not represent all available offers.
 UFB High Rate MMA (3.83% APY) Learn More Best Money Market AccountsHere are the top 14 banks offering the best money market accounts in November 2022:
1. UFB Direct
UFB Direct’s High Rate Money Market Account currently offers up to 3.83% APY at all tiers. Just note that rates can change daily without prior notice. The account has no monthly maintenance fees as long as you maintain a balance of more than $5,000 and no minimum balance to earn the high interest APY. UFB Direct is FDIC insured 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 when you aren’t connected to the internet. Learn More:
2. Vio Bank
Vio Bank’s Cornerstone MMA has an APY of 3.02% 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 a minimum deposit of $100. The account comes with the ability to build a savings plan that you can leave on autopilot with automated transfers. Vio Bank is a subsidiary of MidFirst Bank, which is FDIC insured for up to $250,000. Learn More:
3. SkyOne Federal Credit Union
Powered by SaveBetter, SkyOne FCU’s high-yield money market account offers a 2.75% APY, which is more than 18x the national average. The account compounds interest daily and credits it to your account on the last day of the month. While most of SkyOne’s competitors cap transactions at 6 per month or charge a fee for excess withdrawals, this account has no transaction limitations. You can open a SkyOne FCU high-yield MMDA with as little as $1. Funds are insured by the NCUA for up to $250,000. The SaveBetter platform is also highly secure, with multi-factor authentication, Cloudflare monitoring, and encryption. 4. Sallie Mae
Sallie Mae’s Money Market Account has a yield of 3.20% APY, making it quite competitive. There are no minimum balance requirements and no monthly fees, making this account very accessible overall. The account includes writing checks and online account management to help you manage the account on the go. Transfers are free and can be made easily with their user-friendly website. 5. Connexus Credit Union
Connexus Credit Union MMA has a maximum rate of up to 3.01% APY. Still, you’ll need to meet the highest balance tier of $100,000+ to achieve this rate. You’ll need to keep a balance of at least $1,000.00 to earn interest – balances below this amount get nothing at all. APY tiers for the Connexus Credit Union Money Market account are: $1,000 to $19,999.99, $20,000 to $99,999.99 and $100,000+. The higher the balance, the higher the APY. Free withdrawals are limited to 4 per month, and the minimum opening deposit is set at $1,000. You also need to have an active checking account with the credit union to qualify. Learn More:
6. Ally Bank
Ally Bank’s money market account offers a 2.75% APY on all tiers, meaning that 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, making it much easier to use this account according to your financial situation and goals. Excessive transactions will cost $10 each, but Ally is refunding this at the moment due to Regulation D being deleted. The account also features unlimited withdrawals from all Allpoint ATMs with no fees, and you can deposit checks from your phone. The account can be opened in the name of a trust and offers 24/7 support and remote check deposits. Learn More:
7. Quontic Bank
Quontic Adaptive Digital Bank offers 2.50% APY on its Money Market Account. It used to be that you had to have and maintain a balance of $150,000 in your account to get the highest APY; however, they now offer this APY on all balance tiers. There is a minimum opening deposit requirement of $100 and a limit of 6 withdrawals per statement cycle. Your 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. Learn More:
8. CIT Bank
CIT Bank’s Money Market Account offers a 1.55% APY, available on all balances. To open the account, you’ll need to deposit a minimum of $100, which can be deposited by mailing a check, ACH electronic transfer, or wire transfer. Interest is compounded daily and paid out monthly. There is a $10 fee for each transaction over and above the allowed 6. The account also includes easy access to Bill Pay, Zelle, and PayPal. There are no monthly service fees. Outgoing wire transfers will set you back $10 if your average daily balance is below $25,000, otherwise, it’s free. Learn More:
9. Synchrony Money Market Account
Synchrony offers Money Market accounts a 2.00% APY. This rate is applicable on all balance tiers, which means you’ll make this much regardless of how much money you have in your account. There are no minimum balance requirements, but if you open an IRA MMA, you will need to deposit at least $250 to open the account. The account is FDIC insured and includes the ability to write checks, make ATM withdrawals or withdraw your money online or by phone – depending on your preference. Learn More:
10. BrioDirect
BrioDirect’s High-Yield Money Market account offers three APY tiers depending on your balance. Normally, to get the highest rate, you need to have a balance of $100,000 or more, with the middle tier being $25,000 – $99,999; however, currently all the tiers are earning the same yield at 0.70% APY. The account has no maintenance fees, and you can make up to 6 withdrawals per month without incurring any fees. Should you exceed this limit, you can expect to pay a fee of $10. The account does not offer check-writing privileges. The minimum deposit amount required to open the account is set at $100. 11. Discover
Discover Bank’s Money Market Accounts offer an APY rate that goes as high as up to 2.95% APY. You’ll need a balance of $100,000 or more to get this rate but will still earn 1.90% on balances under $100,000. There is no minimum balance and no fees for most things, including NSF (insufficient funds) or excessive transactions. The bank may refuse to pay the excessive transactions, but this rule is not being enforced at the moment. ATM withdrawals are unlimited. 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 if your device supports this. Learn More:
12. First Internet Bank
First Internet Bank’s MMAs come with a yield of up to 2.22% APY, available on all tiers. The bank may update its rates daily, encouraging people to contact the bank directly to get their current rates. There is a monthly maintenance fee of $15 that you can avoid by having a minimum balance of $1,000. The minimum deposit required to open the account is $1000, and transfers are limited to 6 per month. Learn More:
13. Navy Federal Credit Union
Navy Federal Credit Union offers two types of MMSAs (Money Market Savings Account) with a maximum rate of up to 1.50% APY. The rate you get will depend on the type of account you choose as well as your balance. The standard account is called the Money Market Savings Account. It offers a maximum yield of up to 0.70% APY on balances over $10,000. You can earn a slightly lower yield on balances less than $10,000, but your rate will drop to 0% if you go below $2,500. The Jumbo Money Market Savings Account offers a yield of up to 1.50% APY. To earn the max interest, you’ll need an account balance of $1,000,000, with lower tiers still earning interest. The account includes access to checks and ATM withdrawals while the interest is compounded and paid monthly. Learn More:
14. TIAA Bank
TIAA Bank’s Money Market accounts offer a rate of up to 2.10% APY. This rate is available on all balance tiers and comes with a yield pledge. Through this pledge, the bank guarantees to carry out weekly reviews of their rate. They look at what their competitors offer and adjust to make sure they’re in the top 5%. The account has no monthly fee. This account’s minimum opening deposit is $500 to deposit by mail, online transfer, or through mobile deposit. If you’re worried about safety, the bank also carries a web safety guarantee. The guarantee promises 100% protection for any funds lost due to unauthorized online access or a mistake on their part. Learn More:
What is a Money Market Account?A Money Market Account (MMA or MMSA) is a type of savings account that includes some features that some types of checking accounts offer. These features can have the ability to write checks and a debit card – but this differs from one bank to the next. MMAs also come with a generous APY, which is typically higher than what checking accounts offer. That said, it could be lower than what you’d get by opening a savings account or a high-yield savings account. There are no rules that say which type of account has a lower or higher interest rate. Each bank is free to offer different rates on different accounts. That’s why it’s important first to assess your financial needs and then see which type of account is best suited to meet your goals. Pros and Cons of Money Market AccountsMoney 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:
Cons:
Money Market Account AlternativesIf 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 AccountsA 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. MMAs tend to have higher minimum opening deposit requirements than savings accounts. And when it comes to interest, MMAs often have a minimum account balance requirement to earn APY. Money Market Accounts vs. Certificates of DepositsMoney 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 FundsWhile 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 YouBefore getting started, you might want to sit down and think about why you want a money market account and what you hope this will help you achieve. You might also want to consider how much money you can set aside, as that’ll also influence which account is best for you. While the accounts with the most competitive rates might seem like the best ones, this is not always the case. The truth of the matter is that choosing the best one is not always a straightforward affair. In this section, we will be covering some of the most important aspects of MMAs. None of these things are necessarily good or bad, but they can put extra strain on your finances – depending on how you want to use the account. RequirementsOne 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 this is the first step. FeesBank fees can really eat into your interest (and sometimes your savings, too), so familiarizing yourself with the bank’s fee schedule is important. Costs, such as monthly maintenance fees, can often be avoided, as long as you meet the bank’s requirements. Make sure you can cover these before choosing an account. APY (Annual Percentage Yield)Once you’re sure that you can meet the requirements and avoid most, if not all, fees, the APY rate is the next important thing to consider. The higher the APY rate, the more interest you’ll make on your money. Do check if the APY rate is tiered, then try to plan how much money you will be able to save. Knowing this can help you determine how much money you will be able to make. AccessMost MMAs limit the number of withdrawals you can make per month while others do not. Think about why you will use the account and then see if the allocated limits can work for you. Digital BankingMany of us would prefer not to queue at the bank, making online banking and mobile banking relatively important. Check what functionality the bank offers through their online banking portal or mobile app. See if this is enough for you to carry out most, if not all, of your banking needs. InsuranceMaking 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. By making sure your account is insured, you can rest well, knowing that should the worst happen, you’re covered. 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. Frequently Asked QuestionsIs a money market account worth it?A money market account sits between a savings account and a checking account. Due to some banks’ withdrawal limitations, you shouldn’t get a Money Market Account instead of a checking account. Still, you can get a money market account instead of a savings account. Unlike traditional savings accounts, MMAs will typically include a debit card and check writing, making it easier to access your money. Of course, this is not the case at every bank. Sometimes, it can get quite blurry what differences exist between the different types of accounts. The best way to look at money market Accounts is just another type of account that can help you reach your goals faster. It might not be advisable to consider getting this type of account for its own sake, but only if it fits within the financial goals that you have. How does APY work?APY stands for Annual Percentage Yield. While this might sound similar to APR, which stands for Annual Percentage Rate, they work a bit differently. It’s worth talking about two other numbers while discussing APY rates – compounding period and payment frequency. We will cover these in a short while. Banks will always list APY rates as percentages, which can be a bit confusing. The number refers to the percentage of your money the financial institution will pay you. Different banks and credit unions offer different rates, but they’re not set in stone and will typically fluctuate. The fluctuation happens 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, resulting in a low or high APY. So, keeping an eye on the effective rate the bank is offering you is a good idea, as it’ll help make sure that you’re getting a competitive APY. Banks set APY over one year, which means that the bank will pay account holders that much over one year. How banks work this out can change from one institution to another. That’s why the compounding period is important. 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. That means you’ll earn interest on your interest, helping you make even more money. 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, this rule can apply even to these accounts. On the 24th of April 2020, the Board of Governors of the Federal Reserve System deleted this rule, and many banks followed suit. Banks who 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. Because of this, it is important to check what the rules are before opening an account. Which bank has the best money market account?With all accounts having their pros and cons, no one account will be the best for everyone. That is especially true since everyone has specific needs and requirements. While many might equate a higher APY with a better account, this is not always the case. There are many other things to include in your considerations, such as:
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. That’s because online banks tend to have lower overheads and, as such, 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 important 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. 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. What is the best money market rate right now?The Ascent's best money market accounts and rates. 3.83% APY: UFB High Rate Money Market Account (Member, FDIC). 2.90% (balances under $100k), 2.95% (balances $100k+) APY: Discover Money Market (Member, FDIC). 1.55% APY: CIT Bank Money Market (Member, FDIC). 2.50% APY: Ally Money Market Account (Member, FDIC). What bank has the highest money market interest?Bankrate's picks for the top jumbo money market rates. First Internet Bank: 3.09% APY; $1,000,000.01 minimum deposit for APY.. Discover Bank: 2.95% APY; $100,000 minimum deposit for APY.. TIAA Bank: 2.25% APY; $100,000 minimum deposit for APY.. Navy Federal Credit Union: 1.50% APY; $1,000,000 minimum deposit for APY.. Where can I put my money for the highest interest rate?If you're looking for a safe investment with a solid return, you may want to consider a certificate of deposit (CD). A CD is a type of savings account that typically offers a higher interest rate than a traditional savings account.
Which bank gives 7% interest on savings account?DCB Bank. Interest rates for savings accounts at DCB Bank are effective as of August 22, 2022. The bank is now giving an interest rate of 7.00% on account balances between 25 lakh and less than 2 crore.
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