Compare the best money market account rates and understand how MMAs fit into your savings strategy.
Current Money Market Rates
Rates as of March 2026. Updated weekly.
Top Money Market Rates
| Bank Type | APY Range | Min Opening |
|---|---|---|
| Top online banks | 4.75-5.00% | $0-$100 |
| Average online | 4.25-4.75% | $0-$500 |
| Credit unions | 4.00-4.75% | Varies |
| Regional banks | 2.00-4.00% | $500-$2,500 |
| Big national banks | 0.01-0.50% | $0-$2,500 |
Rates by Balance Tier
Many money markets offer tiered rates:
| Balance | Low Tier APY | High Tier APY |
|---|---|---|
| $0-$999 | 4.00% | 4.50% |
| $1,000-$9,999 | 4.25% | 4.75% |
| $10,000-$49,999 | 4.50% | 4.90% |
| $50,000-$99,999 | 4.60% | 5.00% |
| $100,000+ | 4.75% | 5.05% |
Money Market vs High-Yield Savings vs CDs
| Feature | Money Market | HYSA | CD |
|---|---|---|---|
| Top APY | 4.75-5.00% | 4.75-5.05% | 4.50-5.00% |
| Liquidity | High | High | Locked |
| Check writing | Yes | No | No |
| Debit card | Usually | Rarely | No |
| FDIC insured | Yes | Yes | Yes |
| Min balance | Often $500+ | Usually $0 | Varies |
| Best for | Flexible savings | Emergency fund | Fixed timeline |
Interest Earnings Calculator
At 4.75% APY
| Balance | Monthly Interest | Annual Interest |
|---|---|---|
| $5,000 | $20 | $238 |
| $10,000 | $40 | $475 |
| $25,000 | $99 | $1,188 |
| $50,000 | $198 | $2,375 |
| $100,000 | $396 | $4,750 |
Comparison: 4.75% MMA vs 0.45% Big Bank
| Balance | MMA Interest | Big Bank | Difference |
|---|---|---|---|
| $10,000 | $475 | $45 | +$430 |
| $25,000 | $1,188 | $113 | +$1,075 |
| $50,000 | $2,375 | $225 | +$2,150 |
| $100,000 | $4,750 | $450 | +$4,300 |
You lose thousands per year by keeping money at a big bank paying 0.45%
Money Market Features
Standard Features
| Feature | Typical Terms |
|---|---|
| FDIC/NCUA insurance | Up to $250,000 |
| Check writing | 3-6 checks/month |
| Debit card | Usually included |
| Online access | Standard |
| Mobile deposit | Usually available |
| Withdrawals | Limited to 6/month* |
*Federal limit on certain electronic/check withdrawals was lifted but some banks still limit
Premium Features (Select Accounts)
| Feature | Availability |
|---|---|
| ATM fee rebates | Some accounts |
| No minimum balance | Online banks |
| Tiered rates | Common |
| Relationship bonuses | Regional banks |
Minimum Balance Requirements
| Bank Type | Typical Minimum | Fee if Below |
|---|---|---|
| Online banks | $0 | None |
| Credit unions | $0-$500 | $5-$15/month |
| Regional banks | $500-$2,500 | $10-$25/month |
| National banks | $2,500-$10,000 | $12-$25/month |
Money Market Rate History
| Period | Average Top Rate |
|---|---|
| March 2026 | 4.85% |
| December 2025 | 4.75% |
| June 2025 | 5.00% |
| December 2024 | 5.15% |
| June 2024 | 5.25% |
| December 2023 | 5.20% |
| June 2023 | 4.70% |
| December 2022 | 3.50% |
| December 2021 | 0.55% |
| December 2020 | 0.50% |
When to Choose Money Market
Best Uses
| Use Case | Why MMA Works |
|---|---|
| Emergency fund | Liquid + decent yield |
| Short-term savings | High rate, accessible |
| Business funds | Check-writing ability |
| Large cash reserves | FDIC insured, competitive rate |
| Sinking funds | Multiple goals, one account |
When to Choose Alternatives
| Situation | Better Choice |
|---|---|
| Don’t need check access | High-yield savings |
| Fixed timeline | CD (may get better rate) |
| Very short term (<3 mo) | HYSA or checking |
| Long-term savings | Investments |
Opening a Money Market Account
What You Need
- Government-issued ID
- Social Security number
- Initial deposit (if required)
- Bank account for funding (ACH transfer)
Tips for Best Experience
| Tip | Benefit |
|---|---|
| Compare rates weekly | Rates change frequently |
| Check minimums | Avoid monthly fees |
| Review rate tiers | Know when you’ll get best rate |
| Look at full APY | Not just promotional rate |
| Check ATM access | Some have fee reimbursement |
Taxes on Money Market Interest
| Income Level | Federal Tax |
|---|---|
| 10% bracket | 10% of interest |
| 22% bracket | 22% of interest |
| 24% bracket | 24% of interest |
| 32%+ bracket | 32%+ of interest |
Example: $500 interest at 22% bracket = $110 tax = $390 after-tax earnings
Tax Forms
- 1099-INT issued for $10+ in interest
- Report all interest even if no form
- Interest taxed as ordinary income
Money Market Safety
| Protection | Coverage |
|---|---|
| FDIC (banks) | $250,000 per depositor |
| NCUA (credit unions) | $250,000 per depositor |
| Joint accounts | $500,000 combined |
| Multiple banks | $250,000 each |
Note: Money market accounts are FDIC insured. Money market funds (mutual funds) are NOT FDIC insured.
Related: Best Savings Accounts | CD Rates | HYSA vs CD vs Money Market