A money market account offers the accessibility of a checking account with the interest-earning benefits of a savings account. Unlike most savings accounts, MMAs generally offer check-writing privileges. But like savings accounts, some banks limit the number of withdrawals and transfers you can make each month.
The best money market accounts offer competitive annual percentage yields, or APYs, well above the Federal Deposit Insurance Corporation’s national average of 0.63%. In fact, MMAs available at banks tracked at CNET currently offer APYs over 4%.
The Federal Reserve opted to once again hold rates where they are at its December policy meeting, so interest rates on deposit accounts, including MMAs, remain high. The central bank also hinted at three possible rate cuts in 2024, which could bring current rates offered by banks down as the cost of borrowing decreases.”
Here’s a look at CNET’s picks for the best money market accounts.
Quick look: The best money market accounts compared
|
Ally Bank |
4.40% | $0 | $0 |
|
Quontic Bank |
5.00% | $100 | $0 |
| Vio Bank | 5.30% | $100 | $0 |
|
Sallie Mae Bank |
4.75% | $0 | $0 |
| First Internet Bank of Indiana | 3.76% | $100 | $5 |
|
EverBank |
3.75% | $0 | $0 |
|
Synchrony Bank |
2.25% | $0 | $0 |
Note: The APYs provided were collected from the issuing organizations’ websites and are valid as of Dec. 13, 2023.
More details on the best money market accounts
/5
Minimum deposit and fees
5.0/5
APY
APY = Annual Percentage Yield.
4.40%
Min. deposit to open
$0
Monthly fee
$0
Our take
With more than 2 million customers and various checking, savings, investing and retirement accounts, Ally is one of the most popular online-only banks out there. Its money market account currently offers a 4.25% APY on all balance tiers, and Ally doesn’t charge monthly fees.
You don’t need an initial deposit to open the account, and you’ll have unlimited withdrawals if you can find one of Ally’s Allpoint ATMs (over 43,000 around the US). If you can’t find one of Ally’s ATMs, you can either transfer money to a checking or savings account with better ATM access or pay an out-of-network ATM fee, but Ally will reimburse you up to $10 per statement cycle for out-of-network ATM expenses. You can write checks from this account and request a debit card for more accessibility.
With more than 2 million customers and various checking, savings, investing and retirement accounts, Ally is one of the most popular online-only banks out there. Its money market account currently offers a 4.25% APY on all balance tiers, and Ally doesn’t charge monthly fees.
You don’t need an initial deposit to open the account, and you’ll have unlimited withdrawals if you can find one of Ally’s Allpoint ATMs (over 43,000 around the US). If you can’t find one of Ally’s ATMs, you can either transfer money to a checking or savings account with better ATM access or pay an out-of-network ATM fee, but Ally will reimburse you up to $10 per statement cycle for out-of-network ATM expenses. You can write checks from this account and request a debit card for more accessibility.
/5
Minimum deposit and fees
5.0/5
APY
APY = Annual Percentage Yield.
5.00%
Min. deposit to open
$100
Monthly fee
$0
Quontic Bank is a New York-based online bank with no physical branches. Its money market account offers a competitive APY and no monthly maintenance fees. You can open an MMA at 5.00% APY (the second-highest yield on this list) with just a $100 minimum deposit. Interest is compounded daily and credited monthly.
Quontic’s money market account includes debit card access and check-writing privileges. But you’ll pay a $10 excessive transaction fee per withdrawal if you exceed your six withdrawal limit for each statement period. We like the level of accessibility you get with this account, but the excessive transfer fee is among the highest on this list. However, with a yield nearly eight times the FDIC’s national average, the Quontic MMA is a solid choice as long as you’re OK with digital banking.
Quontic Bank is a New York-based online bank with no physical branches. Its money market account offers a competitive APY and no monthly maintenance fees. You can open an MMA at 5.00% APY (the second-highest yield on this list) with just a $100 minimum deposit. Interest is compounded daily and credited monthly.
Quontic’s money market account includes debit card access and check-writing privileges. But you’ll pay a $10 excessive transaction fee per withdrawal if you exceed your six withdrawal limit for each statement period. We like the level of accessibility you get with this account, but the excessive transfer fee is among the highest on this list. However, with a yield nearly eight times the FDIC’s national average, the Quontic MMA is a solid choice as long as you’re OK with digital banking.
/5
Minimum deposit and fees
5.0/5
APY
APY = Annual Percentage Yield.
5.30%
Min. deposit to open
$100
Monthly fee
$0
Our take
A division of MidFirst Bank, Vio Bank is an online-only, privately owned bank based in Oklahoma City — and it offers the highest APY on this list. With just $100, you can open an MMA at 5.30% APY, with interest compounding daily.
You won’t pay a monthly fee with Vio, unless you opt for paper statements ($5 per month). The only other fee to worry about is a $10 excessive transaction fee per withdrawal if you go over your six withdrawal limit per statement period. Because Vio only offers savings products (including CDs and a savings account), if you’re looking to bring your checking, credit and savings accounts under one roof, Vio may not be the bank for you. Keep in mind this account doesn’t offer debit card access or check-writing privileges.
A division of MidFirst Bank, Vio Bank is an online-only, privately owned bank based in Oklahoma City — and it offers the highest APY on this list. With just $100, you can open an MMA at 5.30% APY, with interest compounding daily.
You won’t pay a monthly fee with Vio, unless you opt for paper statements ($5 per month). The only other fee to worry about is a $10 excessive transaction fee per withdrawal if you go over your six withdrawal limit per statement period. Because Vio only offers savings products (including CDs and a savings account), if you’re looking to bring your checking, credit and savings accounts under one roof, Vio may not be the bank for you. Keep in mind this account doesn’t offer debit card access or check-writing privileges.
/5
Minimum deposit and fees
5.0/5
APY
APY = Annual Percentage Yield.
4.75%
Min. deposit to open
$0
Monthly fee
$0
Our take
Sallie Mae is an FDIC-insured bank headquartered in Salt Lake City, primarily known for creating, servicing and collecting private student loans. However, Sallie Mae also offers a variety of savings accounts with higher-than-average APYs. With no monthly fees or a minimum deposit required to open the account, Sallie Mae offers a highly accessible money market account.
Sallie Mae’s money market account includes check-writing features and has no withdrawal limits. It also has a relatively high 4.75% APY, which compounds daily and is paid monthly. Keep in mind that Sallie Mae will close your account if it’s dormant, defined as having $100 or less and no activity for the past 12 months.
Sallie Mae is an FDIC-insured bank headquartered in Salt Lake City, primarily known for creating, servicing and collecting private student loans. However, Sallie Mae also offers a variety of savings accounts with higher-than-average APYs. With no monthly fees or a minimum deposit required to open the account, Sallie Mae offers a highly accessible money market account.
Sallie Mae’s money market account includes check-writing features and has no withdrawal limits. It also has a relatively high 4.75% APY, which compounds daily and is paid monthly. Keep in mind that Sallie Mae will close your account if it’s dormant, defined as having $100 or less and no activity for the past 12 months.
First Internet Bank of Indiana
/5
Minimum deposit and fees
3.3/5
APY
APY = Annual Percentage Yield.
3.76%
Min. deposit to open
$100
Monthly fee
$5
Our take
Known for its above-average CD rates, the First Internet Bank of Indiana, another online-only bank, offers a wide array of financial products, including two checking accounts, a savings account and CDs at several terms. Its money market account offers a decent APY, earning more interest than its free savings account (3.76% compared to 0.80%, respectively).
You need $100 to open the money market account, and unless you can maintain an average daily balance of $4,000 in the account, there’s a $5 monthly maintenance fee, which can cut into your savings over time.
Still, this account offers an extra perk: It will reimburse you up to $10 every month for fees incurred from using an out-of-network ATM. First Internet Bank allows up to six withdrawals per month. That said, if you don’t need ATM access or want to withdraw from your account frequently, there are higher APYs available from high-yield savings accounts at other banks.
Known for its above-average CD rates, the First Internet Bank of Indiana, another online-only bank, offers a wide array of financial products, including two checking accounts, a savings account and CDs at several terms. Its money market account offers a decent APY, earning more interest than its free savings account (3.76% compared to 0.80%, respectively).
You need $100 to open the money market account, and unless you can maintain an average daily balance of $4,000 in the account, there’s a $5 monthly maintenance fee, which can cut into your savings over time.
Still, this account offers an extra perk: It will reimburse you up to $10 every month for fees incurred from using an out-of-network ATM. First Internet Bank allows up to six withdrawals per month. That said, if you don’t need ATM access or want to withdraw from your account frequently, there are higher APYs available from high-yield savings accounts at other banks.
/5
Minimum deposit and fees
3.8/5
APY
APY = Annual Percentage Yield.
3.75%
Min. deposit to open
$0
Monthly fee
$0
EverBank, formerly TIAA Bank, is a full-service online bank with physical locations in Florida. Its Yield Pledge Money Market account earns an intro APY of 4.75% for the first year on balances up to $250,000. Ongoing rates vary depending on your balance. For example, balances up to $9,999.99 earn 3.75% APY after the first year. You must have a balance of at least $100,000 to earn the bank’s highest listed ongoing APY of 4.30%.
There are no monthly maintenance fees for this account. Accounts with balances over $15,000 will receive unlimited out-of-network ATM fee reimbursements. However, accounts with balances below that threshold will receive up to $15 per statement cycle for out-of-network ATM fees.
We also like that EverBank’s money market account includes debit card access and check-writing privileges.
EverBank, formerly TIAA Bank, is a full-service online bank with physical locations in Florida. Its Yield Pledge Money Market account earns an intro APY of 4.75% for the first year on balances up to $250,000. Ongoing rates vary depending on your balance. For example, balances up to $9,999.99 earn 3.75% APY after the first year. You must have a balance of at least $100,000 to earn the bank’s highest listed ongoing APY of 4.30%.
There are no monthly maintenance fees for this account. Accounts with balances over $15,000 will receive unlimited out-of-network ATM fee reimbursements. However, accounts with balances below that threshold will receive up to $15 per statement cycle for out-of-network ATM fees.
We also like that EverBank’s money market account includes debit card access and check-writing privileges.
/5
Minimum deposit and fees
5.0/5
APY
APY = Annual Percentage Yield.
2.25%
Min. deposit to open
$0
Monthly fee
$0
Our take
Synchrony is an FDIC-insured online bank that offers competitive yields on deposit accounts. Though its money market account isn’t the highest-yielding account on this list, it doesn’t require a minimum opening deposit, and there are no monthly service fees.
Synchrony’s money market account offers check-writing privileges and an optional ATM card to access your money at any participating ATM. It will reimburse you up to $5 per statement cycle for out-of-network ATM fees.
Synchrony offers an array of savings products with high APYs, though its money market account rate is on the lower end of the spectrum. Still, Synchrony offers an accessible money market account you can manage from the convenience of your mobile device. But if you prefer a financial institution with brick-and-mortar locations, this may not be the bank for you.
Synchrony is an FDIC-insured online bank that offers competitive yields on deposit accounts. Though its money market account isn’t the highest-yielding account on this list, it doesn’t require a minimum opening deposit, and there are no monthly service fees.
Synchrony’s money market account offers check-writing privileges and an optional ATM card to access your money at any participating ATM. It will reimburse you up to $5 per statement cycle for out-of-network ATM fees.
Synchrony offers an array of savings products with high APYs, though its money market account rate is on the lower end of the spectrum. Still, Synchrony offers an accessible money market account you can manage from the convenience of your mobile device. But if you prefer a financial institution with brick-and-mortar locations, this may not be the bank for you.
What is a money market account?
A money market account is a type of savings account that earns interest but also provides debit card access and check-writing privileges. MMAs generally offer higher yields than traditional savings accounts in exchange for higher initial deposits or minimum balance requirements. If neither of these requirements are an issue, a money market account can offer a safe way to grow your savings while still offering access to your cash. But depending on the bank, there’s usually a limit on the number of withdrawals you can make within a single month before incurring a fee.
How to choose a money market account
There are several questions to answer when evaluating a money market account.
- What is the highest APY available?
- How can you access your funds?
- Does the account offer check-writing privileges or ATM access?
- What is the minimum balance requirement? Are there fees or penalties associated with balances dropping below that level?
- Are there limitations on the number of transactions permitted each month? What’s the excessive transaction fee if you exceed that amount?
- Is the account federally insured by the FDIC or National Credit Union Administration?
Pros and cons of opening a money market account
Pros
-
Balances can earn a competitive APY.
-
Most banks and credit unions offer MMAs.
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Most banks let you access your money via ATM withdrawals or in-person withdrawals without a fee.
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Balances are insured by the FDIC or NCUA up to $250,000 per person, per ownership type, per institution.
-
Unlike most CDs, MMAs have no lockup periods or early withdrawal penalties.
Cons
-
Interest rates on MMAs are generally variable, making your return less predictable.
-
Other low-risk savings options pay higher interest rates on deposit accounts, such as certificates of deposit.
-
Some banks may limit the number of debit card purchases, online transfers and check transactions per month.
Money market accounts compared with other deposit accounts
The best high-yield savings accounts offer rates that can rival those available on money market accounts, but they don’t generally have check-writing privileges.
A certificate of deposit, or CD, earns an APY that will vary based on the term. Longer-term CDs usually pay a higher APY than a money market account, but access to your money is limited until the CD reaches maturity. You’ll likely have a penalty fee if you withdraw funds before the CD term ends.
Money market mutual funds sound similar, but are an investment sold by brokerages and investment firms. Money invested in these funds is not insured by the FDIC or NCUA, so investors can experience higher growth rates, but there are limited guarantees if the money is lost. The Securities Investor Protection Corporation, or SIPC, protects the cash and securities in your brokerage account for up to $500,000 if your brokerage firm fails. However, your firm must be a SIPC member to qualify.
When should you invest in a money market account?
As a general rule of thumb, anything over 1% is considered a good rate for a money market account. In the current economy, rates are high, with the best MMAs offering up to 5%.
Money market accounts are great savings options when you don’t need constant access to your money but want check-writing privileges. You should also consider a money market account if you’re looking for a low-risk, interest-earning savings account that’s insured for balances up to $250,000 per person, per ownership type, per institution.
How to open a money market account
You can typically open a money market account online in a few steps. Here’s what to do:
1. Compare your options: Before you open an MMA, compare rates, features and account requirements at different financial institutions to make sure you select the right fit for you.
2. Submit an application: Many financial institutions allow you to complete the application process online, or you can apply in person at a local branch. You’ll typically need to provide your Social Security number, physical address, contact information and a state-issued ID, such as a driver’s license, to verify your identity and open an account.
3. Fund your money market account. You’ll need to deposit at least the required minimum amount to fund your account. The minimum opening deposit will vary depending on the bank.
FAQs
Should I open a savings account or a money market account?
Savings accounts and money market accounts are currently offering around the same APYs. (An annual percentage yield — which is the rate of return earned on an investment, including compound interest — is effectively your interest rate for the year.) For either account, anything beyond 1.00% is considered a robust interest rate. That noted, several online-only banks, including Bask and SoFi, are offering high-yield savings account APYs that are higher than some of the money market accounts on this list (4.45.% and 4.00%, respectively). And national banks such as Wells Fargo, Chase and Bank of America aren’t offering good interest rates on either their savings accounts or their money market accounts. If you’re looking for higher rates, you might be better off opening an account with an FDIC-insured online-only bank.
While savings accounts are more widely available than money market accounts, choosing between them does not need to be an either-or situation. For example, having multiple savings accounts could be a useful way to divide up your accounts based on your financial goals — you can open one account to save up for college and another one for a home.
There could be an advantage, however, to having a savings account at a bank where you already have a checking account and lines of credit. With savings, checking and credit accounts under one roof, it’s easier to transfer funds (free of fees) between accounts. Also keep in mind that some banks don’t issue debit cards for money market accounts, so having accounts with one bank that you can easily move money between may be helpful.
Are money market accounts safe?
Balances up to $250,000 per person, per ownership type, per institution are insured against bank loss or failure by the FDIC or NCUA. This makes a money market account at a federally insured bank or credit union a low-risk savings option.
You should also verify the security protocol for any institution you’re considering. Safeguarding your digital devices with passwords or biometric security features will also help protect your account access.
Do money market accounts charge fees?
The fees charged by banks for money market accounts varies. Some banks don’t charge a monthly fee while others can charge fees unless your balance meets a minimum threshold. Money market accounts also typically charge a fee for excessive withdrawals if the number of withdrawals exceeds six per month.
Are money market accounts taxed?
Yes, interest earned on money deposited in your money market account is taxable at your current tax rate. This is also the case with any interest earned in a savings or checking account.
The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.
