What are the best money market rates

If you're looking to get a better interest rate on your savings, you need to consider opening a money market account.

Money market accounts operate extremely similar to savings accounts, and they are available at most banks. However, you're typically going to find the best money market accounts at online banks.

A money market account can be a great place to park your savings, your emergency fund, your down payment for your house, or any other large sum of cash.

We break down our favorite money market accounts, as well as provide a list of the best money market accounts everyday in our table that updates daily. Given that interest rates change daily, make sure you check the table to get the best rates.

Promo: Want to earn more on your savings? Check out CIT Savings Connect. Right now, you can earn 3.00% annual percentage yield (APY) with just a $100 minimum deposit. Get started with CIT Savings Connect here >>

Best Money Market Accounts

Our Top 10 Money Market Account Picks

We evaluate money market accounts (MMA) based on their annual percentage rate (the interest you receive), the minimum balance requirements, and the terms and conditions of having the account.

Based on that, here are our recommendations of the best money market accounts.

Note: The savings offers that appear on this site are from companies from which The College Investor receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). The College Investor does not include all savings companies or all savings offers available in the marketplace.

1. mph Bank - 3.20% APY 

mph Bank stands for "Make People Happy" - and honestly their interest rate will definitely do that for you! 

You can currently get 3.20% APY with just a $1 minimum opening deposit. There are no monthly fees or other minimum balance requirements.

mph Bank is a FDIC Insured through Liberty Savings Bank (which also offers some amazing savings account options).

Read our full mph Bank review here.

Open an account here >>

2. UFB Direct - 3.11% APY

UFB Direct is another top-notch online bank that has historically been known for some of the top rates on savings and money market accounts.

They pay a solid rate and don't have a super-high balance requirement - just $5,000 to open the account. After that, there are no minimum balance requirements.

Right now, you can earn 3.11% APY on all balances.

Read our full UFB Direct Bank Review.

Open an account here >>

3. American First Credit Union - 3.05% APY

American First CU Money Market Account is a solid option at a nationwide credit union! If you're looking to a solid credit union to park your savings, check this one out.

You can currently get 3.05% APY with just a $1 minimum opening deposit. 

Open an account here >>

4. Ponce Bank - 3.00% APY

Ponce High Yield Money Market Account is one of our top money market picks because they have one of the highest interest rates offered to consumers with no tiers or balance requirements (like some of the others below).

You can currently get 3.00% APY with just a $1 minimum opening deposit. 

Read our full Ponce Bank review here.

Open an account here >>

5. SkyOne Federal Credit Union - 2.90% APY

SkyOne Federal Credit Union is a nationwide credit union that has been around for over 70 years. They are branching into offering more competitive online products, and their money market account is one of the highest rates you can earn right now.

You can currently get 2.90% APY with just a $1 minimum opening deposit. There are no monthly fees or other minimum balance requirements.

SkyOne is federally insured by the NCUA. Read out full SkyOne Federal Credit Union review here.

Open an account here >>

6. Barclays Bank - 2.40% APY

Barclays Bank has a fairly standard online savings account that's highly comparable to other money market accounts on this list. 

Unlike others on this list, there is no minimum balance required to open an account with Barclays.

They are about as traditional a bank as you get. Plus, they also don't charge any monthly fees as well.

You can currently get 2.40% APY.

Read our full Barclays Bank review here.

Open an account here >>

7. Marcus - 2.35% APY

Marcus is another online bank that has been gaining real traction. Marcus is the online bank run by Goldman Sachs, and they offer extremely competitive yields on their banking products.

They have no minimum deposit and no transaction fees, which is great considering that they are usually always one of the top yielding accounts available.

Right now you can earn 2.35% APY.

Check out our full Marcus by Goldman Sachs review here.

8. Discover Bank - 2.30% APY

Discover Bank has been around for a long time online, but not many people realize they have a bank beyond their credit cards.

They do pay a higher interest rate on balances over $100,000 - so they operate much like a traditional money market account. And best of all, they are fee free!

Right now, you can earn 2.30% APY on balances over $100,000 and 2.25% APY for balances under $100,000.

9. Capital One 360 - 2.35% APY

Capital One 360 is another online bank that has been around for a long time. This one is more recognizable for being a bank, but they are still very well known for their credit cards.

They have a good yield on their account (which they actually call their Performance Savings account), and they also are offering bonuses for opening a new account. With no monthly fees, this is a solid choice.

You can currently get 2.35% APY on any balance!

Read our full Capital One review here.

10. CIT Bank - 1.55% APY

The CIT Bank Money Market Account is one of our top money market picks because they consistently have one of the highest interest rates offered to consumers.

Also, their platform in incredibly easy to use, with the ability to sign up and get started in minutes.

You can currently get 1.55% APY if you meet the requirements (whether balance or deposits). 

There are no gimmicks with CIT Bank - you earn interest on your entire balance, and you have a low minimum to get started. Read our full CIT Bank review here.

Bonus: Right now, you can earn 1 free year of Amazon Prime (open to new and existing customers) when you open and fund a CIT Bank Money Market account.

• Just open a Money Market account using the promo code AMZN22.
• Fund your account with at least $15,000 within 15 days and keep a minimum balance of at least $15,000 for 60 days following the 15-day funding period.
• Within 30 days following the end of the funding period, if you’ve fulfilled the requirements, CIT Bank will send you an email with your Prime membership code.

Open an account here >>

The Difference Between A Savings Account And A Money Market Account

It's important to note that there is very little difference between a savings account and a money market account.

Both accounts are FDIC insured, both have limits on how many checks and transfers you can do, and both are offered by banks, credit unions, and investment firms.

The big difference is that a money market account typically pays a little bit higher interest, but it also typically requires a slightly higher minimum balance.

That's not always the case, though.

You can check out our list of the best high yield savings accounts here.

For example, one of our favorite picks, CIT Bank does only have a $100 minimum, which isn't much.

Money Market Accounts (MMA) vs. Certificates of Deposit (CDs)

Money markets also have the advantage over certificates of deposit because they are liquid - you can get a higher interest rate on your money but you don't have to worry about tying your money up for a long period of time.

While there are some CDs that earn higher rates than you'll find in a money market account, those CDs typically have 5-10 year time frames.

Depending on where you open a money market account, it may not be FDIC insured. CDs are typically always FDIC insured. Learn more what it means to be FDIC insured here.

And if you sell before your expiration date, you typically face large penalties. 

You can get a glimpse of the best CD rates here, but if you need liquid savings, you're better off going with a savings account or money market account.

Common Money Market Questions

Here's our FAQ on money markets based on some of the common questions we get.

What's the difference between a money market and savings account?

There is very little difference between a savings account and a money market account. Both accounts are FDIC insured, both have limits on how many checks and transfers you can do, and both are offered by banks, credit unions, and investment firms.

The big difference is that a money market account typically pays a little bit higher interest, but it also typically requires a slightly higher minimum balance.

What's the difference between a money market and a CD?

A CD is a banking product that has a structured term, and you must keep your money in that CD for the term in order to get your interest payment. With a money market account, you can deposit and withdrawal your money at any time.

Are money market accounts FDIC insured?

Yes! Money market accounts are FDIC insured.

Are money market accounts offered only at banks?

Money market accounts are offered at banks, credit unions, and even some brokerage firms.

Do money market accounts charge fees?

Some may charge monthly maintenance fees, especially if you don't keep the minimum balance required. Always make sure that you're looking out for fees!

Can you lose your money in a money market account?

No, you cannot lose money in a money market account as long as you're under the FDIC insurance deposit limits.

Final Thoughts

A money market account can be a great way to save your money.

You typically earn higher interest rates, but there are some restrictions above and beyond what you usually find for savings accounts. 

Just like any account, make sure you're opening the best money market account for your needs so you can reap the rewards.

Methodology

The College Investor is dedicated to helping you make informed decisions around complex financial topics like finding the best money market account. We do this by providing unbiased reviews of the top banks and money market accounts for our readers, and then we aggregate those choices into this list.

We have picked money market accounts based on our opinions of how easy they are to use, their costs and fees, any interest rates and bonuses provided, and a variety of other factors. We believe that our list accurately reflects the best money market accounts in the marketplace for consumers.

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