JUMP TO Section Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.- Introduction to money market rates
- Factors influencing money market rates
- Comparing money market rates
- Finding the highest money market rates
- Strategies for maximizing returns
- FAQs
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- The average money market account earns 0.66% Annual Percentage Yield (APY), according to the FDIC.
- The actual interest rate on a money market account may depend on the account balance and bank.
- Money market interest rates can change over time.
A money market account functions like a savings account — it earns a small amount of interest and can help money grow, and has monthly limits on withdrawals.
To learn more about the impact of money market account rates on savings, we'll dive into how money market rates are determined and where to find the best money market accounts.
Featured Money Market Account UFB Portfolio Money Market Start saving UFB Direct, FDIC insured through Axos Bank
Icon of check mark inside a promo stamp It indicates a confirmed selection. PerksFees$10 monthly service fee
Annual Percentage Yield (APY)5.15%
Minimum Opening Deposit$0
Pros- Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimum opening deposit
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. High interest rate
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. Check writing included
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. Debit card option
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. Possible to waive monthly maintenance fees
- con icon Two crossed lines that form an 'X'. $10 monthly service fee
You may favor the UFB Portfolio Money Market if you would like a bank account that includes paper checks and a debit card.
UFB Portfolio Money Market Product Details- Earn 5.15% APY*.
- No monthly maintenance fees with a $5,000.00 balance, otherwise fee is $10.00 per month.
- Access your funds 24/7 with easy-to-use digital banking tools.
- Enjoy peace of mind with FDIC insurance up to the maximum allowable limit – Certificate #35546.
- * The Annual Percentage Yield (APY) is accurate as of 11/16/2023. The interest rate and corresponding APY for savings is variable and is set at UFB's discretion. This is a tiered variable rate account. Interest rates may change as often as daily without prior notice. Fees may reduce earnings.
Introduction to money market rates
Definition and importance
The money market account rate tells you how much you'll earn by keeping money in it. When looking at money market rates, you might see two different numbers — the interest rate and the annual percentage yield (APY).
Both of these numbers are expressed as percentages. The difference between these two numbers is that the APY tells you how frequently the interest is compounded, while the interest rate doesn't. If you're trying to figure out how much interest you'll earn in a year, you should refer to the APY, not the interest rate.
How money market rates work
Your money market account's rate will vary based on several factors, including the balance, which bank you use, and the current interest rate market. The average money market account rate is 0.66% APY based on an average of $10,000 to $100,000 balance tiers, according to the FDIC.
Money market accounts have variable rates, just like traditional savings accounts. The rate can change over time, and you'll get a notice from your bank if this happens.
Factors influencing money market rates
Money market rates tend to change with the overall economy and interest rates set by the Federal Reserve. The Fed may adjust rates to ensure that long-term interest rates, maximum employment, and price stability are maintained.
You'll see money market account rates drop at financial institutions when the Fed cuts rates and rise when the Fed raises rates.
Money market accounts currently offer competitive rates because the Federal Reserve raised the federal funds rate several times in 2022 and 2023. Once inflation gets closer to 2%, the Fed will likely cut rates in a future. The Fed anticipates at least 3 rates cuts in 2024.
Comparing money market rates
Money market interest rates vs. high-yield savings interest rates
Money market accounts will typically have higher interest rates than the average savings account's interest rate.
But, among banks that have both high-yield savings accounts and money market options, high-yield savings accounts often come out on top.
| Bank | Current money market interest rate (Annual Percentage Yield - APY) | Current high-yield savings interest rate (APY) |
| Ally | 4.20% | 4.20% |
| Synchrony | 2.25% | 4.75% |
| CIT Bank | 1.55% | 4.65% |
| Discover® (Member FDIC) | 4.00% to 4.05% | 4.25% (as of 3/14/24) |
| PenFed Credit Union | 0.05% to 0.15% | 3.00% |
Money market account interest rates vs. CD rates
Money market account interest rates are generally lower than average CD rates. Also, keep in mind that CDs pay fixed rates while money market accounts have variable interest rates. This means that the CD rate will stay the same for the term that you've chosen, but money market account rates can fluctuate at any time.
| Bank | Current money market interest rate (Annual Percentage Yield - APY) | Current 1-year CD rate |
| Ally | 4.20% | 4.50% |
| Synchrony | 2.25% | 4.80% |
| CIT Bank | 1.55% | 0.30% |
| Discover® (Member FDIC) | 4.00% to 4.05% | 4.70% |
| PenFed Credit Union | 0.05% to 0.15% | 4.00% |
Average money market rate by bank
Each bank sets different rates for its money market accounts. Money market accounts are offered at both brick and mortar banks and online banks. Here are current money market rates offered by several popular banks.
| Bank | Money market interest rate |
| Ally Money Market Account | 4.20% |
| Synchrony Money Market Account | 2.25% |
| CIT Bank Money Market Account | 1.55% |
| Discover Money Market Account (Member FDIC) | 4.00% to 4.05% |
| Pentagon Federal Credit Union Money Market Savings | 0.05% to 0.15% |
| Sallie Mae Money Market Account | 4.65% |
| PNC Premiere Money Market Account | 0.02% to 3.50% (varies by location) |
Some banks offer higher interest rates for people with several accounts at one bank. Check with your bank to see if a special relationship rate could apply to your money market account.
Featured Money Market Account UFB Portfolio Money Market Start saving UFB Direct, FDIC insured through Axos Bank Icon of check mark inside a promo stamp It indicates a confirmed selection. PerksFees$10 monthly service fee
Annual Percentage Yield (APY)5.15%
Minimum Opening Deposit$0
Pros- Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimum opening deposit
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. High interest rate
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. Check writing included
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. Debit card option
- Check mark icon A check mark. It indicates a confirmation of your intended interaction. Possible to waive monthly maintenance fees
- con icon Two crossed lines that form an 'X'. $10 monthly service fee
You may favor the UFB Portfolio Money Market if you would like a bank account that includes paper checks and a debit card.
UFB Portfolio Money Market Product Details- Earn 5.15% APY*.
- No monthly maintenance fees with a $5,000.00 balance, otherwise fee is $10.00 per month.
- Access your funds 24/7 with easy-to-use digital banking tools.
- Enjoy peace of mind with FDIC insurance up to the maximum allowable limit – Certificate #35546.
- * The Annual Percentage Yield (APY) is accurate as of 11/16/2023. The interest rate and corresponding APY for savings is variable and is set at UFB's discretion. This is a tiered variable rate account. Interest rates may change as often as daily without prior notice. Fees may reduce earnings.
How to find the highest money market rates
Money market account rates are generally more competitive at online banks than at brick-and-mortar banks. Credit unions also pay high interest rates on money market accounts, but you may need to meet certain membership requirements to join (That said, there are a couple of credit unions that anyone in the U.S. can join.)
While money market account rates can help narrow down options, they shouldn't be the only thing you use to determine your top pick. Money market accounts have other features that should be considered as well. For example, financial institutions set different minimum opening deposits for money market accounts. The standard minimum opening deposit requirement across most financial institutions is $1,000. Some banks, however, let you open a money market account with $0.
Common bank fees are another feature that can greatly impact your account decision. Some banks charge monthly service fees if you don't have a certain balance, while others do not charge any monthly service fees.
Strategies for maximizing returns with money market accounts
You can use the following tips to maximize returns on money market accounts:
- To maintain the highest rate on a tiered interest money market account, review your bank statement regularly or set balance alerts.
- To avoid monthly bank maintenance fees, choose a fee-free money market account or meet the monthly activities to waive monthly fees.
- Compare money market account rates from various financial institutions to make sure you're getting a high rate.
Quick tip: Money market accounts are not the same as money market funds. Money market accounts are interest-earning bank accounts that are FDIC-insured for up to $250,000 per depositor per account ownership category. Money market funds are a type of investment option that isn't FDIC-insured. There is a risk you could potentially lose money in a money market fund.
Money market account rate FAQs
What are money market rates? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.Money market rates specify the interest earned on a money market account. If you want to know how much you'll earn in a money market account over the course of a year, look for the APY.
How do money market rates differ from savings account rates? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.Average money market rates are usually higher than average savings account rates.
What factors affect money market rates? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.Financial institutions will determine money market rates for their product. Money market account rates are also indirectly impacted by economic conditions. When the Federal Reserve makes changes to the federal funds rate, money market accounts tend to change as well.
How can I get the best money market rate? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.You can get the best money market account rates by comparing several online financial institutions. It also helps to look at average money market rates, so you have a benchmark to compare current rates to.
Are money market rates fixed or variable? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.Money market rates are variable, so the rate can go up or down at any time.
Liz Knueven Personal Finance Reporter Liz was a personal finance reporter at Insider. Before joining Insider, she wrote about financial and automotive topics as a freelancer for brands like LendingTree and Credit Karma. She earned her bachelor's degree in writing from The Savannah College of Art and Design. She lives and works in Cincinnati, Ohio. Find her on Twitter at @lizknueven. Read more Read less 
Sophia Acevedo Banking Editor Sophia Acevedo is a banking editor at Business Insider. She has spent three years as a personal finance journalist and is an expert across numerous banking topics.ExperienceSophia leads Personal Finance Insider's banking coverage, including reviews, guides, reference articles, and news. She edits and updates articles about banks, checking and savings accounts, CD rates, and budgeting and saving. She is highly knowledgeable about long-term trends in rates and offers at banks across the U.S.Before joining Business Insider, Sophia worked as a journalist at her college newspaper and was a freelance writer. She has spent seven years writing and editing as a journalist.Sophia was nominated for an Axel Springer Award for Change in 2023 for her coverage of ABLE accounts, tax-free savings accounts for people with disabilities. She was also a winner of a 2018 California Journalism Awards Campus Contest for her photography.She loves helping people find the best solutions for their unique needs and hopes that more people will find the tools to solve their financial problems. She’s inspired by stories of everyday people adapting to their financial circumstances and overcoming their fears around money.ExpertiseSophia's expertise includes:- Bank accounts
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