Maximize Your Savings: Top Money Market Account Rates
The Federal Reserve’s recent rate cuts have sent deposit rates tumbling, making it crucial to shop around for the best money market account (MMA) rates. With the national average MMA rate hovering at 0.66%, according to the FDIC, you could be leaving money on the table. However, some top accounts are still offering impressive yields of up to 5% APY.
Don’t Miss Out on Higher Yields
With rates potentially dropping further, now is the time to open a high-yield money market account and take advantage of today’s competitive rates. Here are some of the top MMA rates available:
- 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 APY and Compound Interest
The annual percentage yield (APY) determines how much interest you can earn from a money market account. It takes into account the base interest rate and compounding frequency, which is typically daily for MMAs. To illustrate, a $1,000 deposit in an MMA with a 0.66% APY would grow to $1,006.62 after one year, earning just $6.62 in interest. In contrast, a high-yield MMA with 5% APY would yield $51.27 in interest, bringing the total balance to $1,051.27.
The Power of Higher Deposits
The more you deposit into a money market account, the more you stand to earn. For example, a $10,000 deposit in a 5% APY MMA would generate $512.67 in interest over one year, bringing the total balance to $10,512.67.
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.
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