The Best Money Market Accounts
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Money market accounts are interest-bearing accounts that can add to your savings through earned interest. They typically earn a higher interest rate than traditional savings accounts. The current national average interest rate for traditional savings accounts is 0.46%, according to the Federal Deposit Insurance Corp. (FDIC). The national average interest rate on money market accounts is not much higher at 0.47%. That’s why it’s important to seek out the best money market accounts for you, many of which offer higher interest rates.
Unlike traditional savings accounts, money market accounts offer some of the same capabilities as checking accounts, with checks, debit purchases, and ATM withdrawals and are good additions for personal finance. Although usually limited, these features can make it quick and easy for you to access your funds.
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Best money market accounts overview
Most money market accounts share similar features, but some differences could make one option better for you and your financial situation.
Bank | Best for |
CIT Bank | Low entry into money market account |
Sallie Mae | Check deposits with mobile app |
Ally | Expansive ATM network |
EverBank | Building retirement savings |
Discover | High-volume savings balance |
BMO Harris | In-person banking |
Capital One | Easy access to funds |
Synchrony | Online banking |
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Best money market accounts
Each featured money market account earns compounded interest daily, paid monthly. Also, all are FDIC-insured up to $250,000 per depositor, per bank, and ownership category.
CIT Bank
CIT Bank money market account earns 1.55% annual percentage yield (APY) rates and can be opened with just $100. Although there are no monthly service fees, it is possible to incur other fees. These include a $30 stop payment fee. If you make an outgoing wire transfer, accounts with less than $25,000 will incur a $10 fee; these are free for accounts with more than $25,000.
To increase your savings, you can transfer funds from other accounts, set up direct deposits, mail-in checks, and set up incoming wire transfers and deposit checks using the mobile app. You can initiate an ACH or wire transfer or request a check to withdraw your money. You can make six withdrawals per cycle without incurring a fee.
Unlike many other money market accounts, CIT Bank does not offer checks or debit cards with its money market account. If you want quick access to your funds using these financial tools, you must look for a money market account with a different bank.
You can manage your account online or using the mobile app and complete such tasks as updating your information, setting up transfers, viewing statements, and checking on recent activity.
Sallie Mae
Currently, Sallie Mae’s money market account earns 4.75% APY, although bank offers may include bonus or promotional interest money market account rates on new accounts. This is a great account for those just starting to save or with limited funds for savings because it doesn’t require a minimum deposit to open or any minimum balance to earn interest.
Although it does not offer a debit or ATM card, you can receive checks for your money market account. When ordering checks, when you open the account, you will receive a free order of checks. However, if you wait or need to reorder checks, they cost $5 for standard delivery or $15 for expedited delivery.
You can add funds to your Sallie Mae money market account by direct deposit, ACH transfers, mobile check deposit, or by mailing in checks. During the first 30 days your account is open, all deposits will be held for 10 business days. After 30 days, this time frame drops to five days for deposits.
You are limited to six withdrawals per statement cycle: ACH transfers, checks, or wire transfers. You will be charged $10 per excessive withdrawal if you exceed your permitted withdrawals. Other fees you could incur include a $5 returned check fee for all returned deposits regardless of format, a stop payment fee of $15, and a $19 insufficient funds fee.
Ally Bank
Online financial institution Ally’s money market account offers high interest rates with some of the highest rates. It is one of the top money market accounts with easy access to your funds. You receive checks and debit cards with this account, and Ally’s ATM network has more than 43,000 locations. Currently earning a higher APY of up to 4.4%, you don’t need a minimum initial deposit to open an account.
You can deposit money into your account via eCheck Deposit online or in the app, ACH transfers, direct deposit, wire transfers, and by mailing in checks. Ally provides you with deposit slips and free prepaid envelopes. However, you cannot deposit cash.
Withdrawals can be made by check, ATM, or transfer but are limited to six withdrawals per statement cycle. While ATM withdrawals from in-network are always free, Ally will reimburse up to $10 per statement cycle for non-network ATM fees. If you exceed your allowed number of withdrawals, you will be charged a $10 excessive transaction fee per transaction.
Additional fees at Ally include a $7.50 returned deposit item fee, a $15 fee for expedited delivery of checks or debit cards, a $20 fee for outgoing domestic wire transfers, and an account research fee of $25 per hour.
EverBank
EverBank, formerly TIAA Bank, offers a current money market rate of 4.75%. TIAA Bank does offer a “Yield Pledge” promise wherein they guarantee your interest rate will always be in the top 5 percent for competitive rates.
You will need $500 to open a TIAA Bank money market account, but no monthly minimum balance requirements exist. In addition, there are no monthly account fees. You can log in online or use the mobile app to access and maintain your account.
In addition to transfers, you can access your funds using checks or a debit card, which also can be used at ATMs. There are no ATM charges at in-network ATMs; you can receive up to $15 in ATM fee reimbursements when using non-network ATMs. You will be reimbursed for all non-network ATM fees if your account balance is $5,000 or more.
With a TIAA Bank money market account, you can set it up as an individual retirement account (IRA). While the features of the account remain the same as those with the regular money market account, when setting your account up as an IRA, earnings on your account are tax-deferred.
Discover Bank
Discover could be a good option if you place many funds in your money market account. You will need $2,500 to open the account. Once you do, you will earn 4.20% APY on balances less than $100,000, increasing to 4.25% for balances $100,000 and over. As you can see in this comparison, other options offer higher interest rates without nearly the same investment.
Discover also doesn't charge fees for the services: monthly maintenance, ordering checks, expedited delivery for debit card or official bank checks, returned deposit items, excessive withdrawals, stop payment orders, or insufficient funds.
Regarding withdrawals, Discover’s money market account limits withdrawals to six per statement cycle unless there are unlimited ATM withdrawals. You can withdraw a maximum of $510 per day through ATMs. You also get access to over 60,000 ATMs across the U.S.
You can deposit funds through transfers, direct, and mobile check deposits using online and mobile banking. You can also mail in checks for deposits.
BMO Harris
BMO Harris sets its money market interest rates, unlike other banks, based on where you live. Account holders can earn up to 2.00% APY, which varies by location and account balance. You will need $25 to open your money market account.
If you’re looking for an account to build your savings for the long term, BMO Harris may not be right for you. This is best for the short term.
BMO Harris also charges a $10 monthly maintenance fee, which is waived if your daily ledger balance is $5,000 or more for the statement period. There are other fees as well, including an excessive withdrawal fee of $15 per transaction beyond six per month, a $3 fee per transaction at a non-BMO Harris ATM, a $35 stop payment fee, and a $50 account closing fee if closed within 90 days of opening.
If you prefer in-person banking, BMO Harris does have brick-and-mortar branches in certain states.
Capital One
With the Capital One 360 Money Market account, you will earn 0.10% APY on your funds. Because there are no minimum deposit or monthly balance requirements and no fees, this is a good money market account for those just getting started with these high-yield savings accounts. Although you will not receive checks with this account, you will receive a 360 Money Market Card at ATMs.
If you like banking in person, Capital One is a national bank that maintains branches and Cafes nationwide. You also can maintain your high-yield money market account online or using the mobile app. As such, you can make deposits to your money market account in person, via online transfers, using mobile check deposits, and setting up direct deposits. Generally, you cannot withdraw deposits for four business days.
When taking money from your 360 Money Market account, you can have unlimited transfers and withdrawals via ATM or teller. However, all ATM transfers must be between Capital One accounts. Also, ATM withdrawals are limited to $1,000 per day. For all other transactions, you are limited to six withdrawals per month.
In addition, you must agree to paperless communications on your money market account. You will be charged $5 per statement if you request a paper statement copy. Other fees on this account include a $30 outgoing wire transfer fee.
Synchrony Bank
You can earn 2.25% APY on your savings for Synchrony Bank's regular money market account. You don’t need a minimum deposit to get started, and there aren't any minimum balance requirements either. You can request checks and an ATM card to access your money.
You can withdraw cash for free at any in-network ATM when using the ATM card. Synchrony will reimburse up to $5 for domestic ATM use when using non-network ATMs. You also can withdraw money by setting up ACH or wire transfers online or by phone. You are limited to six monthly transfers or withdrawals, although ATM withdrawals don’t count toward this limit. Synchrony may deny your transaction or charge you a fee if you exceed this limit. If you repeatedly exceed this limit, Synchrony may close your account.
To make deposits, you can schedule incoming ACH or wire transfers online, deposit checks using the mobile app or by mail to the bank’s Atlanta office, and set up direct deposit.
You have 24/7 access to your money market account through online and mobile banking. You can reach Synchrony through online chat, phone, and mail if you need customer service.
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Best money market accounts summary
Bank | APY | Monthly Fee | Minimum opening deposit | Monthly minimum balance | Maximum withdrawals/mo |
CIT Bank | 1.55% | $0 | $100 | $0 | 6 |
Sallie Mae | 4.75% | $0 | $0 | $0 | 6 |
Ally | 4.40% | $0 | $0 | $0 | 6 |
EverBank | 4.75% | $0 | $500 | $0 | 6 |
Discover | Up to 4.25% | $0 | $2,500 | $0 | 6 |
BMO Harris | Up to 2.00% | $10, waivable | $25 | $0 | 6 |
Capital One | 0.10% | $0 | $0 | $0 | 6 |
Synchrony | 2.25% | $0 | $0 | $0 | 6 |
The APYs shown are as of December 7, 2023, and are subject to change.
FAQs
What is a money market account?
A money market account is a savings account that earns interest on your money, usually at a higher interest rate than a traditional savings account. Unlike a traditional savings account, though, your money market account may include withdrawal capabilities using checks or a debit or ATM card.
Are money market accounts FDIC-insured?
Yes, if your money market account is a member FDIC bank, then your account has a minimum FDIC insurance limit, which is $250,000 per depositor, per bank, per ownership category.
Do money market interest rates change?
Yes, money market interest rates do change. If you receive an introductory rate when you open your account, it will remain fixed for a specific period of time. When that time period expires, the rate may change.
Why should (or shouldn’t) I use a money market account?
Money market accounts provide a great way to earn interest on your savings, usually at a higher rate than traditional savings accounts. And with checks or a debit or ATM card, you can access those funds much easier than with a traditional savings account. This is great in the event you need regular access to your money.
However, it shouldn’t be treated as a regular checking account because of the limited transactions you have each month. Fees for excessive withdrawals could be very costly and negate any interest earnings you may receive on your savings.
If you are just building up your financial savings, choosing a money market account with no minimum deposit requirement provides an easy way to get started without straining your finances.
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The bottom line
Money market accounts are ideal for building up your savings, even if you likely won’t get rich off the interest rates. Choosing an account with no minimum deposit requirements further paves the way to building a solid financial foundation for you. And, unlike other savings accounts and tools, you can easily access your funds when needed.
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Writer
Karon Warren is a freelance writer who has covered articles in finance, insurance and health for sites like Reviews.com, USA Today, Healthgrades, among others.
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