Money market account rates are directly tied to the federal funds rate — when the Fed moves, MMA rates follow. After the Federal Reserve raised rates aggressively in 2022–2023 to fight inflation, it began cutting in late 2024. By mid-2026, top MMA rates have settled in the 4.00%–4.50% range — still historically high, but below their 2023 peak.
Where MMA Rates Stand in 2026
| Rate tier | 2026 APY (approx.) |
|---|---|
| Top online MMA | 4.00%–4.50% |
| Average online bank MMA | 3.50%–4.00% |
| National average (all MMAs) | ~0.70% |
| Big bank MMA | 0.01%–0.50% |
| Federal funds rate (target) | ~3.75%–4.00% |
Rate History: How We Got Here
| Period | Fed Funds Rate | Top MMA Rate | Why |
|---|---|---|---|
| 2020–2021 | 0.00%–0.25% | 0.40%–0.60% | Post-COVID emergency rate cuts |
| 2022 | Rising to 4.25% | 0.50%–3.00% | Inflation-fighting hikes began |
| 2023 | 5.25%–5.50% (peak) | 4.50%–5.30% | Fed held at peak; competition drove rates up |
| Q4 2024 | Cuts began (3 total) | 4.25%–4.75% | Fed began easing cycle |
| 2025 | Further cuts | 3.80%–4.50% | Continued easing |
| 2026 | ~3.75%–4.00% | 4.00%–4.50% | Stabilization |
2026 Rate Forecast
The Federal Reserve’s own projections (as of early 2026) suggest rates remain near current levels for most of the year, with limited additional cuts expected unless economic conditions deteriorate significantly.
Base case (most likely): The Fed holds the federal funds rate at 3.75%–4.00% through 2026. Top MMA rates remain in the 4.00%–4.50% range. Savers continue to benefit from historically strong rates.
Downside case (rate cuts): If inflation falls faster than expected or unemployment rises sharply, the Fed could cut 1–2 more times in 2026. Top MMA rates could fall to 3.50%–4.00%. Savers who lock in CD rates now would benefit.
Upside case (rate hikes): If inflation re-accelerates unexpectedly, the Fed could hold or raise. MMA rates would stay elevated or increase. Variable MMA accounts benefit in this scenario.
Should You Lock In a CD Now?
If you are concerned about rates falling further, a CD can protect your yield for a fixed term:
| Strategy | APY (approx.) | Term | Tradeoff |
|---|---|---|---|
| Top 12-month CD | 4.25%–4.50% | 12 months | No access without penalty |
| Top 24-month CD | 4.00%–4.25% | 24 months | Longer lock-in |
| Top MMA | 4.00%–4.50% | None (variable) | Rate can fall |
Worked example: You have $30,000 in an MMA at 4.20% APY ($1,260/year). You move $15,000 to a 12-month CD at 4.40% APY ($660/year guaranteed) and keep $15,000 in the MMA. If the MMA drops to 3.50% during the year, you earned $660 + $525 = $1,185 on the $30,000 — versus $1,050 if you had kept everything in the MMA and the rate dropped.
What to Do With Your MMA in 2026
- Compare rates now: Is your current MMA rate above 3.80%? If not, compare alternatives.
- Consider a CD ladder: Spread money across 6-month, 12-month, and 24-month CDs if you want rate protection.
- Stay alert: Set a calendar reminder to check your MMA rate quarterly and compare it against the top 10 rates.
- Do not stay at a big bank out of inertia: The gap between big bank MMA rates (0.01%–0.50%) and online bank rates (4%+) remains enormous. Switching takes one afternoon.
For the current national average money market rates, see national average money market rates. For how Federal Reserve rate decisions drive these changes, see Federal Reserve explained. For the highest-yielding savings options in the current rate environment, see high-yield savings hub.
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