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Time to Boost Your Savings: Top Money Market Account Rates

As interest rates continue to fall, it’s essential to maximize your savings earnings. One attractive option is a money market account (MMA), which offers interest on your balance, plus debit card and/or check-writing capabilities.

Historical Perspective: Money Market Account Interest Rates

From a historical standpoint, MMA interest rates have been relatively high. Although the national average stands at 0.66%, according to the FDIC, top MMAs often pay above 4% APY or more, similar to high-yield savings accounts.

Top Money Market Account Rates Today

Here are some of the best MMA rates available:

• Brilliant Bank Surge Money Market Account: up to 4.85%
• 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 Deposit Account Rates

Deposit account rates, including MMAs, are tied to the federal funds rate set by the Federal Reserve. When the Fed increases the federal funds rate, deposit account rates usually rise. Conversely, when the Fed lowers its rate, deposit rates fall. With the Fed’s recent rate cuts, MMA rates have begun to decline, making now a good time to take advantage of higher rates.

Is a Money Market Account Right for You?

Before opening an MMA, consider the following factors:

• Liquidity needs: MMAs offer easy access to your money, making them ideal for short-term savings goals or emergency funds.
• Savings goals: MMAs provide a safer place for your cash, with returns better than traditional savings accounts.
• Risk tolerance: For conservative savers, MMAs are appealing due to FDIC insurance and principal protection.

Take Advantage of Elevated Rates

Given the current interest rate environment, now might be the perfect time to consider a money market account. By comparing rates from different institutions, you can find the best options available and make the most of your savings.