Money market accounts (MMAs) offer the best of both worlds: the high interest rates of a savings account and the convenience of check-writing capabilities. If you’re looking to maximize your cash while maintaining FDIC insurance coverage, it’s important to find the best money market account rates. In this article, we’ll explore the top options for January 2024.
Best Money Market Account Rates Compared
To help you find the most competitive money market account rates, our team has evaluated traditional brick-and-mortar banks, online-only banks, and credit unions. In addition to interest rates, we’ve considered any associated fees to ensure you maximize your earnings. Here are the top contenders:
| Bank or Credit Union | Account Name | Minimum Balance Requirement | Monthly Fee |
|---|---|---|---|
| UFB Priority | Money Market Account | $5,000 or above | No fee with $5,000 balance |
| UFB Premier | Money Market Account | $10,000 or above | No fee with $10,000 balance |
| VirtualBank | eMoney Market Account | $100 or above | No fee with $100 balance |
| Connexus Credit Union | High Yield Money Market Account | $100 minimum balance | No fee with $1,000 balance |
| CIT Bank | Money Market Account | None | No monthly service fees |
Please note that rates are subject to change. Please confirm with the financial institution for the most up-to-date rates.
Our Recommendations for the Best MMA
Best Overall: Quontic Money Market Account
Our top pick for the best overall money market account is the Money Market Account from Quontic. With an impressive 4.75% APY interest rate, no monthly fees, and a low $100 opening balance requirement, this account is hard to beat. Quontic is a full-service online bank that offers innovative features, such as cryptocurrency rewards and a digital branch in the metaverse.
Balances of $5,000 or Above: UFB Premier Money Market Account
If you’re looking to maximize your earnings with a higher balance, the UFB Premier Money Market Account offers an impressive interest rate for all balances. To avoid the $10 monthly maintenance fee, you’ll need to maintain a balance of at least $5,000. UFB Direct, the online bank offering this account, also provides unique insurance coverage called InsureGuard+, which protects deposits up to $150 million.
In-person Banking: U.S. Bank Elite Money Market Account
For those who prefer in-person banking, the U.S. Bank Elite Money Market Account is worth considering. With a high interest rate, you can enjoy the benefits of a physical branch location and the expertise of human bankers. However, to unlock the best rate and avoid monthly fees, you must meet certain balance requirements. U.S. Bank is one of the largest banks in the country, with over 2,200 branch locations.
No Monthly Fees: CIT Bank Money Market
If avoiding fees is your priority, the CIT Bank Money Market account is an excellent choice. While its interest rate may not be the highest, it offers accounts with no ongoing minimum balance requirements and no monthly service fees. CIT Bank is a division of First-Citizens Bank & Trust, one of the largest banks in the United States.
High Interest Rate with a Low Minimum Balance Requirement: VirtualBank eMoney Market Account
VirtualBank offers an impressive interest rate of 5.00% on all balances with its eMoney Market Account. To qualify, you only need to maintain a minimum balance of $100. This online-only bank provides FDIC insurance and is a straightforward option for those seeking high interest rates without high balance requirements.
Best for High Net Worth Individuals: Connexus Credit Union High Yield Money Market Account
Credit unions often offer more favorable rates and fees compared to traditional banks. Connexus Credit Union’s High Yield Money Market Account offers varying interest rates, with the highest rate reaching 4.76% APY. However, you’ll need to maintain a minimum balance of $1 million to earn that rate. It’s important to consider the rates for lower balances and take into account the insurance limits and potential fees.
How to Choose a Money Market Account
When selecting a money market account, it’s essential to consider several factors. These include the annual percentage yield (APY), minimum balance requirements, other fees, and convenience for your banking preferences. Comparing these criteria will help you find the account that best suits your needs.
Frequently Asked Questions (FAQs)
Are money market accounts a good investment?
Money market accounts offer a government-insured, risk-free way to save money. Compare the interest rates and risks to other investment options to determine if a money market account aligns with your financial goals.
Alternatives to MMAs
If a money market account isn’t your preference, consider high-yield savings accounts or certificates of deposit (CDs). High-yield savings accounts offer competitive interest rates, while CDs provide fixed rates for a specific period.
Money market accounts vs. savings accounts
Money market accounts are a type of savings account that typically includes check-writing capabilities. Traditional savings accounts don’t offer this feature. Both account types may provide FDIC or NCUA insurance and may limit the number of monthly withdrawals.
Are money market account rates higher?
Money market account interest rates can be higher than traditional savings accounts, but it’s important to compare the APY to make an informed decision.
Are MMAs taxed?
Interest earned from money market accounts is generally considered taxable income. Consult a tax professional or visit the IRS website for guidance.
Note: Rates are current as of December 24th, 2023. Please check with the financial institution for the most up-to-date rates.
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