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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.
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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. American First Credit Union - 4.15% 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 4.15% APY with just a $1 minimum opening deposit.
Read our full American First Credit Union review here.
Open an account here >>
2. mph Bank - 4.15% APY
mph Bank stands for "Make People Happy" - and honestly their interest rate will definitely do that for you!
You can currently get 4.15% 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 >>
3. UFB Direct - 4.11% 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 4.11% APY, but it is tiered. If you don't meet the balance requirements, your rate could be lower. However, right now, all of the tiers are the same payout.
Read our full UFB Direct Bank Review.
Open an account here >>
4. Great Lakes Credit Union - 4.10% APY
Great Lakes Credit Union Money Market Account is a solid option at a credit union that's been around for over 80 years! If you're looking to a solid credit union to park your savings, check this one out. Plus, it's NCUA insured.
You can currently get 4.10% APY with just a $1 minimum opening deposit.
Open an account here >>
5. Blue Federal Credit Union - 4.00% APY
Blue Federal Credit Union is a credit union that's been around since 1951, primarily serving those in the Air Force (hence the nod to "Blue"), but open to everyone through an online banking partnership with Save Better.
You can currently get 4.00% APY with just a $1 minimum opening deposit. There are no monthly fees or other minimum balance requirements.
Since this is a credit union, Blue FCU is insured through the NCUA.
Open an account here >>
6. Lemmata Savings Bank - 3.95% APY
Lemmata Savings Bank is an internet-only bank that offers some of the best rates for money market accounts right now.
You can currently get 3.95% APY with just a $1 minimum opening deposit. There are no monthly maintenance fees or other balance requirements.
This account is FDIC insured.
Open an account here >>
7. SkyOne Federal Credit Union - 3.75% 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 3.75% 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 >>
8. Idabel National Bank - 3.55% APY
Idabel National Bank is a midwest bank that's been around since 1921. In partnership with Save Better, anyone can now access top money market rates nationwide with as little as $1.
You can currently get 3.55% APY with just a $1 minimum opening deposit. There are no monthly fees or other minimum balance requirements.
Idabel National Bank is FDIC insured.
Open an account here >>
9. Discover Bank - 3.25% 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 3.25% APY on balances over $100,000 and 3.20% APY for balances under $100,000.
Read our full Discover Bank review here.
10. Ponce Bank - 3.25% 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 3.25% APY with just a $1 minimum opening deposit.
Read our full Ponce Bank review here.
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.
How Important Is Your Money Market Rate?
They key to earning income with your money market account is to get the best rate possible. Too many people don't shop around for the best rates on money market accounts - costing them money.
For example, the Federal Reserve reports that the average money market account rate is currently just 0.38% APY.
If you were depositing $10,000, that would only earn you $29 per year.
However, the best money market rates we have on our list above are earning 4.00% APY. That means, on that same $10,000 deposit, you'd earn $400 per year! That's a $371 per year difference!
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.
