Maximize Your Savings with High-Yield Money Market Accounts
The Federal Reserve’s recent rate cuts have sent deposit rates tumbling, making it crucial to shop around for the best money market account rates. With the national average hovering at 0.64%, according to the FDIC, you could be leaving money on the table by settling for a low-yielding account.
Top Money Market Accounts Offering Higher Returns
Some of the top accounts on the market are currently offering rates of 4% APY and higher. Take advantage of these high rates while they last:
- Quontic Bank Money Market Account: 4.75% APY
- Brilliant Bank Surge Money Market Account: up to 4.70% APY
- TotalBank Online Money Market Deposit Account: 4.67% APY (on balances of $2,500 and up)
- First Foundation Bank Online Money Market Account: 4.50% APY
- VIO Cornerstone Money Market Savings Account: 4.46% APY
- Zynlo Money Market Account: 4.40% APY
- Prime Alliance Bank Personal Money Market Account: 4.15% APY
Understanding APY and Compound Interest
The annual percentage yield (APY) determines how much interest you can earn from a money market account. This rate takes into account the base interest rate and compounding frequency, which is typically daily. To illustrate the impact of APY, consider the following examples:
- A $1,000 deposit in an MMA with a 0.64% APY would grow to $1,006.42 after one year, earning just $6.42 in interest.
- The same deposit in a high-yield MMA with 4% APY would grow to $1,040.81, earning $40.81 in interest.
The Power of Higher Deposits
The more you deposit, the more you stand to earn. For instance, a $10,000 deposit in a 4% APY MMA would grow to $10,408.08 after one year, earning $408.08 in interest.
Explore Other Savings Options
If you’re also considering certificates of deposit (CDs) or traditional savings accounts, we’ve got you covered. Check out our guides to the best CD rates and savings interest rates available today.
Don’t Miss Out on Higher Yields
With rates subject to change, it’s essential to act quickly to secure the best money market account rates. Compare rates, choose a high-yielding account, and start maximizing your savings today.
Leave a Reply