In 2024, the Federal Reserve cut the federal funds rate by a total of one percentage point, influencing lower deposit interest rates, including money market accounts (MMAs). Although the national average for MMAs is a mere 0.66%, top high-yield accounts can offer over 5% APY. This underscores the importance of shopping around for the best rates, often found in online banks and credit unions, which offer competitive rates and fewer fees. Learn more about current top MMA rates.
Money market accounts serve well for short-term savings, offering higher interest rates compared to regular savings accounts, while ensuring easy access and low risk due to FDIC insurance. However, account holders must maintain minimum balances to reap full benefits and avoid fees. They suit those who prefer liquid savings over locking funds in CDs and can meet the account’s terms. Interested in exploring if MMAs align with your saving goals? Let’s discuss your thoughts below!
Question: How do you decide between a money market account and other savings options?
