Money market accounts are similar to savings accounts – except they tend to pay higher interest rates.
Most people new to banking generally open a checking account and savings account when starting out. But banks have several savings vehicles that can earn higher interest than a basic savings and checking account, like money market accounts.
Money market accounts are like a hybrid between a checking and savings accounts that combine some of the best of both features. With money market accounts you earn high interest on your deposits, enjoy easy access to your money, and have the ability to write checks.
5 Best Money Market Rates for 2024
Here are the best money market rates available online for people across the United States:
1. Quontic Bank Money Market — 5.00% APY
Quontic Bank offers one of the best money market account rates that only requires a $100 opening deposit. Quontic Bank does not charge a monthly fee and interest is compounded daily and credited to your account every month.
Customers receive an ATM card and access more than 90,000 surcharge-free U.S. ATMs. Quontic has an A+ rating with the Better Business Bureau.
- Minimum opening balance: $100
- Interest rate: 5.00 percent
- Monthly fee: None
2. Harborstone Money Market Account — 5.25% APY
Harborstone Credit Union began in 1955 serving Air Force members on McChord Air Force Base. In 1996, membership opened to all Washington State residents. Today, people across the United States can access Harborstone’s high-yield money market account online.
The savings products offered by Harborstone Credit Union exclusively through Raisin feature market-leading rates.
- Minimum opening balance: $1
- Interest rate: 5.25 percent
- Monthly fee: None
3. Ponce Money Market Account — 5.26% APY
Ponce Bank began in 1960 in Bronx, NY in 1960, at a time when most banks had abandoned the community. In the 60 years the bank has expanded services to Brooklyn, Queens, Manhattan and New Jersey and the high-yield money market account is available online to people across the United States.
The savings products offered by Ponce Bank exclusively through Raisin feature market-leading rates.
- Minimum opening balance: $1
- Interest rate: 5.26 percent
- Monthly fee: None
4. Blue Federal Money Market Account — 5.15% APY
Blue Federal Credit Union was originally chartered in 1951. Today, 70-plus years later, the organization has transformed to become a financial institution that empowers members to tap into the potential of their money, life and community.
The savings products offered by Harborstone Credit Union exclusively through Raisin feature market-leading rates.
- Minimum opening balance: $1
- Interest rate: 5.15 percent
- Monthly fee: None
5. Lemmata Bank Money Market — 5.03% APY
Lemmata Savings Bank offers a digital-first banking experience rooted in competitive savings products that help you on your journey toward financial growth and empowerment.
The savings products offered through the Raisin platform that features market-leading rates for people across the United States.
- Minimum opening balance: $1
- Interest rate: 5.03 percent
- Monthly fee: None
Who Should Get a Money Market Account?
Anyone looking for a higher interest and a safe place to store cash may benefit from a money market account. Here are a few more benefits:
- Money markets offer easy liquidity if you need your cash unlike CDs where you pay an early withdrawal penalty unless you have a No-penalty CD.
- You want the ability to write checks.
- You want immediate access to funds in case of emergencies.
- You want a good spot to keep your emergency fund.
Is a Money Market Account Safe?
Bank money market accounts are FDIC-insured up to $250,000. The National Credit Union Administration (NCUA) fund insures money market accounts up to $250,000.
What To Watch Out For With Money Market Accounts
Because money market accounts are considered a savings vehicle, they are limited to six outgoing transactions per statement cycle like savings accounts. This is per federal law known as Regulation D. Under Reg D the bank or credit union can charge you a fee, close your account or convert it into a checking account if you go over the limit.
These types of transactions fall under Reg D:
- Online transfers from those accounts to a different account either at the same institution or a different one
- Transfers processed over the phone
- Automatic or preauthorized transfers, such as bill payments or any other recurring transfers
- Overdraft transfers from your savings account to your checking account
- Transfers made by check or debit card
There is a way to get around Reg D six withdrawal limits:
- Check with your bank because many no longer adhere to Reg D and you can make unlimited withdrawals with no penalty or fee.
- Withdrawals or transfers made at ATMs
- Transactions made in person at a bank
- Withdrawals made by telephone if the check is mailed to the depositor
The average rate on savings accounts currently sits at a meager 0.47%, according to the FDIC. Moving your money to a high rate savings account or money market account is a good financial move.
- With an annual percentage yield of 0.47% APY, a $10,000 deposit would only earn around $47 after one year.
- With an annual percentage yield of 5.00% APY like at Ouontic Bank, $10,000 would earn around earn around $511 after one year.
Start earning more interest for your money today. Earning higher interest makes saving money much more gratifying. If you have a negative banking history consider banks that don’t use ChexSystems to open a savings, money market or checking account.7
