Maximize Your Savings with High-Yield Money Market Accounts
If you’re looking for a safe and liquid place to store your cash, money market accounts (MMAs) are an attractive option. They offer higher interest rates than traditional savings accounts, along with flexibility and access to your funds when needed.
What Sets MMAs Apart
Unlike traditional savings accounts, MMAs typically provide better returns, check-writing privileges, and debit card access. This makes them ideal for long-term savings that you want to grow over time, but still access when needed for certain purchases or bills.
Current MMA Interest Rates
The national average interest rate for MMAs is around 0.66%, according to the FDIC. However, the best MMAs often pay around 4.5% to 5% APY, similar to high-yield savings accounts. Here are some of today’s top MMA rates:
- Brilliant Bank Surge Money Market Account: up to 4.85% APY
- Quontic Bank Money Market Account: 4.75% APY
- TotalBank Online Money Market Deposit Account: 4.67% APY (on balances of $2,500 and up)
- VIO Cornerstone Money Market Savings Account: 4.56% APY
- First Foundation Bank Online Money Market Account: 4.50% APY
- Zynlo Money Market Account: 4.40% APY
- Prime Alliance Bank Personal Money Market Account: 4.15% APY
Understanding MMA Rate Fluctuations
MMA rates have fluctuated significantly in recent years, largely due to changes in the Federal Reserve’s target interest rate. In the wake of the 2008 financial crisis, interest rates were kept extremely low to stimulate the economy. However, as the economy improved, the Fed began raising interest rates, leading to higher yields on savings products, including MMAs.
What to Look for in an MMA
When comparing MMAs, it’s essential to look beyond just the interest rate. Other factors, such as minimum balance requirements, fees, and withdrawal limits, can impact the total value you get from the account. Ensure that the account you choose is insured by the FDIC or NCUA, which guarantees deposits up to $250,000 per institution, per depositor.
Finding the Best MMA for You
Shop around and compare accounts before making a decision. Look for MMAs that offer competitive rates without balance requirements, fees, or other restrictions. By doing so, you can maximize your savings and earn the best possible interest rate on your balance.
Leave a Reply