Best Money Market Account Rates for June 2024 (up to 5.40% APY)

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Best Money Market Account Rates

*APYs accurate as of June 26, 2024

How Do Money Market Account Rates Compare?

Here’s how money market accounts compare to CDs, savings accounts, and checking accounts for the banks we highlighted:

	Money Market Account	High-Yield Savings Account	CD Accounts	Checking Account
Quontic Bank	5.00%	4.50%	4.30% to 5.05%	1.10%
EverBank	4.30%	5.05%	3.90% to 5.05%	0.40%
Vio Bank	5.30%	1.10%	2.75% to 5.25%	N/A
Zynlo Bank	5.00%	5.00%	N/A	2.00%
Sallie Mae Bank	4.65%	4.50%	4.00% to 5.10%	N/A
Discover Bank	4.05%	4.25%	2.00% to 4.70%	1.00% Cash Back
Ally Bank	4.20%	4.20%	3.00% to 4.50%	0.25%

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Current Money Market Rates

Every month, the FDIC uses data from financial institutions to determine the national average interest rates for different types of deposit accounts. The national average interest rate for money market accounts is currently 0.75%. However, our picks for the best money market accounts on the market have APYs roughly six to eight times that rate — around 4.2% to 5.3% APY.

To earn top money market rates, you may need to meet certain requirements. For instance, you may not earn interest until your account reaches a minimum balance. A financial institution may also have balance tiers where you get better APYs as your balance increases, or your money might earn a much lower rate after reaching a certain limit.

Alternatively, an account might advertise a promotional rate that drops after a certain time frame.

Date	Bank	APY	One Week Trend
June 30, 2024	Sovereign Bank	5.40%	APY is steady compared to last week
June 30, 2024	EagleBank	5.38%	APY is steady compared to last week
June 30, 2024	Vio Bank	5.30%	APY is steady compared to last week
June 30, 2024	Banesco USA	5.25%	APY is steady compared to last week
June 30, 2024	UFB Direct	5.25%	APY is steady compared to last week
June 30, 2024	CFG Bank	5.25%	APY is steady compared to last week

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How To Use Money Market Accounts

Money market accounts are versatile tools that you can work into your financial strategy in a number of ways.

Flexible Savings

A money market account can be an excellent option for savings if you want to have access to your money at any time but also earn an APY that’s comparable to some certificate of deposit (CD) rates. This flexibility makes them ideal for short-term savings goals such as weddings or vacations.

Diversified Savings Strategy

Money market accounts can complement traditional savings accounts and CDs, diversifying your savings. Anand Talwar, head of deposits and president of Ally Invest Group at Ally Financial, emphasizes the importance of using a mix of savings options to help you meet your financial goals.

“Diversification is key, and you should consider utilizing different types of accounts when you are saving for something down the road, like your child’s college tuition or retirement,” he said

Easy Transactions

Many MMAs offer checks, debit cards, ATM access and electronic transfers such as Zelle, giving you flexibility in managing your money.

Secure Investing

MMAs are safe investment tools since they’re protected by FDIC or National Credit Union Administration (NCUA) for up to $250,000 per bank or credit union, per person, per ownership category. This allows you to safely grow your savings without worrying about losing money.

“Money market accounts are best when you have a large amount of money to invest,” Scott Lieberman, founder of the financial strategy blog Touchdown Money, told MarketWatch Guides. He recommended putting the interest toward a stock purchase later for even bigger gains.

>> Related: What is a money market account?

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Factors That Affect Money Market Rates

Money market rates periodically change based on the economic environment and actions the Federal Reserve takes, such as raising or reducing the federal funds rate. But ultimately, financial institutions decide the rates they’re willing to offer.

Economic Conditions

The Federal Reserve's Decisions

Financial Institutions' Decisions

High inflation hurts customers’ purchasing power. It can leave them with less money to put in deposit accounts and increase the demand for loans, which can help drive interest rates higher.

The opposite typically happens with low inflation since interest rates normally decline when customers have more cash to save and demand for loans goes down.

The Federal Reserve sets the federal funds rate, which is the median interest rate financial institutions pay for overnight loans from one another. Because this rate affects banks’ costs, it impacts the rates they offer consumers and businesses. When the Fed’s target rate rises, the APY offered on money market accounts tends to rise as well.

Financial institutions may raise or lower their money market account rates depending on competition and the need for customers’ deposits.

They may also offer money market account promotions to gain customers. Online institutions often pay better rates on these accounts than traditional institutions with higher expenses such as branches and the staff for them.

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Pros and Cons of a Money Market Account

It’s important to weigh the pros and cons of any product before you make an investment. In general, money market accounts are viewed as a relatively safe, easy way to earn a slightly higher return on your savings. “They provide you with a way to save without too much hassle in your day-to-day financial life,” Joseph Camperato, CEO of National Business Capital, told MarketWatch Guides. “You can use your debit card or checks while still building your savings.”

Here’s a quick rundown of what to consider.

Pros

Competitive APYs available: Although some CDs have higher rates, you can get a very competitive APY on a money market account, especially one from an online financial institution.

Liquidity: MMAs generally provide easier access to your money than other accounts, often allowing for checks, bank cards and Zelle transfers without the early withdrawal penalties common with CDs.

Safe investment: A money market account with FDIC or NCUA deposit insurance is a secure choice since up to $250,000 is safeguarded.

Cons

Balance or deposit requirements: An MMA could have a minimum balance requirement or minimum deposit amount that’s required to get the best APYs.

Limited transactions: Some MMAs limit the number or amount of certain types of transfers you can make each month or statement period.

Fees: Potential account fees, such as a monthly maintenance fee or transaction fees, could impact your overall returns.

Money Market Accounts vs. Money Market Funds

Money market funds can earn competitive yields and be very safe, but they’re mutual funds rather than NCUA- or FDIC-insured bank accounts. They consist of short-term investments — such as bonds and U.S. Treasury securities — that usually mature within a year. Available through investment companies, money market funds often have minimum investment amounts and aren’t as liquid as deposit accounts.

Although their yields can beat some money market accounts, money market funds may not outperform stocks, and they don’t guarantee returns. Like with money market accounts, the overall interest rate environment affects potential returns, and different funds have different yields. You may not have to pay taxes on earnings with some funds, but you’ll often pay fees that reduce your overall return.

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How To Find the Best Money Market Account

Finding the money market account that best fits your needs requires the following:

1. Research rates: Compare the APYs offered by various financial institutions. Look for the most competitive rates.
2. Consider account features: Choose an account that provides convenient access to your funds with features such as check-writing privileges and ATM and debit card access.
3. Review fees and requirements: Be aware of minimum balance requirements and costs including monthly maintenance fees and transaction fees.
4. Check for FDIC or NCUA insurance: Most MMAs are covered by one of these agencies, but make sure before you open an account. 
5. Check for promotions: Keep an eye out for promotional offers such as sign-up bonuses or introductory APYs, which could provide additional value.
6. Read customer reviews: This can help you gauge account holders’ overall satisfaction with a financial institution and its MMAs.

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Alternatives to Money Market Accounts

If you’re weighing whether a money market account meets your needs, consider three other savings options: CDs and traditional and high-yield savings accounts.

Feature	Money Market Accounts	CDs	High-Yield Savings Accounts	Traditional Savings Accounts
Account Fees	May have monthly maintenance fees or transaction fees	Typically don’t have monthly maintenance fees, but early withdrawal penalties may apply	May have monthly maintenance fees	May have monthly maintenance fees
APY	Usually variable, typically 4% to 5.3%	Usually fixed, typically higher than savings accounts and ranging from 4.5% to 5.5%	Usually variable, typically 4.5% to 5.3%	Usually variable and lower than MMAs and CDs, typically 0.01% to 0.5%
Liquidity	High: may allow access to funds with check writing, ATMs, electronic transfers and debit cards	Low to medium: usually have early withdrawal penalties	Medium: typically allow transactions via electronic transfers	High: easy access to funds with minimal restrictions
Minimum Opening Deposit	Varies, often ranging from $100 to $5,000	Varies, typically ranging from $0 to $1,000	Varies, typically ranging from $0 to $1,000	Varies, often ranging from $0 to $500
Risk	Low: principal amount is typically safe due to FDIC or NCUA insurance	Low: principal amount typically safe due to FDIC or NCUA insurance, and the APY is usually fixed	Low: principal amount is typically safe due to FDIC or NCUA insurance	Low: principal amount typically safe due to FDIC or NCUA insurance
Transaction Limits	May limit certain types of transfers each month or statement cycle	Typically don’t allow transactions until the CD matures, so early withdrawals may incur penalties	May limit certain types of transfers each month or statement cycle	May have monthly withdrawal limits, and excessive transactions may incur fees

Money Market Rates vs. Savings Rates

The chart below uses data from the FDIC to compare the average interest rates of savings and money market accounts from 2010 to 2024. During that time, MMA rates almost always beat savings rates.

>> Related: Read more about money market accounts vs. savings accounts

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The Bottom Line: Money Market Account Rates

Money market rates can help your savings grow, so it’s important to compare the offerings at different financial institutions, as well as any fees that might cut into your earnings. For example, if your MMA earns a competitive APY but the bank charges a monthly maintenance fee or charges transaction fees for withdrawals, these expenses could affect your balance significantly.

That’s why we recommend making your decision based on more factors than an account’s rate, such as perks and balance requirements.

Recap of Our Picks for the Top Money Market Accounts

• Quontic Bank Review
• EverBank Review
• Vio Bank
• Zynlo Bank Review
• Sallie Mae Bank
• Discover Savings Account Rates
• Ally Bank Review

FAQ: Money Market Account Rates

Who has the highest money market rates right now?

Online banks tend to offer the highest money market rates right now, with some having APYs as high as 5.40%.

Where can I get 5% interest on my savings account?

You can typically get up to 5% APY on a savings account through online banks and credit unions. Look for high-yield savings accounts that don’t charge monthly fees or require high minimum balances.

What is a downside of a money market account?

One downside of a money market account is that transfers and withdrawals may be limited. You might also need to make a large opening deposit or keep a high balance to get the best money market rates.

Can I lose money on a money market account?

Yes, you could lose money on a money market account, but it’s relatively rare. Fees and penalties could cut into your balance if they’re higher than the interest you’ve earned. Money market accounts are considered low-risk investments because they typically have deposit insurance through the FDIC or NCUA.

Methodology

Our team has researched more than 100 of the country’s largest and most prominent financial institutions, collecting information on each provider’s account options, fees, rates, terms and customer experience. We then score each firm based on the data points and metrics that matter most to potential customers. Read our full methodology. 

*Data accurate at time of publication

**Rates and promotions accurate as of June 26, 2024