The Best Money Market Account Rates

Shawn Plummer

CEO, The Annuity Expert

Compare the best money market account rates from 423 banks and credit unions across the United States.

The Best Money Market Account Rates

Money Market Rates

Certificates of Deposit vs. Fixed Annuity

The Top Fixed Annuities

Fixed annuities offer a guaranteed return for a set amount of years, similar to a CD. Guaranteed crediting rates for the terms below:

  • 2 YEAR TERM: 2.15%
  • 3 YEAR TERM: 2.60%
  • 4 YEAR TERM: 2.60%
  • 5 YEAR TERM: 3.05%
  • 7 YEAR TERM: 3.25%
  • Grow your money as fast as possible
  • Principal protection
  • Interest rate is locked for the term you select
  • Tax deferred growth
  • Withdraw annually without penalty
  • Lump sum death benefits
  • Accepts cash, 401(k), and IRA Funds

What’s The Difference Between a Fixed Annuity and CD?

FeatureFixed AnnuityCD
Who OffersInsurance CompanyBanks
Premium Amounts$2,500 to $1 Million$500 – No Maximum
Terms2 Years to 20 Years3 Months to 7 Years
Guaranteed Interest RatesUp to 3.25%Up to 1.25%
Principal ProtectionYesYes
Can Lose Money?NoNo
Liquid After Term100%100%
How Are Gains Taxed?Tax-DeferredTaxed Annually
Annual LiquidityUp to 10% AnnuallyNo Liquidity
Who Protects My Money?Insurance Company/SGAFDIC
Accepts IRAYesNo
Accepts 401(k)YesNo
Death BenefitLump-SumLump-Sum

Are Annuities FDIC Insured?

Fixed annuities are not FDIC insured, but they have similar protections for your money. An annuity is an insurance policy guaranteed by the insurance company’s claims-paying ability. The insurance companies are members of the state insurance guarantee associations in each state where they do business. Each state insurance guarantee association protects consumers in the unlikely event that their insurance company fails and defaults on their obligations to their consumers (limits vary per state).

For example, Georgia insures up to $250,000 of the annuity’s cash value per insured life if the insurance company becomes insolvent and can not fulfill its obligations to the insured.

Disclaimer: I may receive a small referral fee if you purchase something using a link in this article.

Which Accounts Offers The Best Bank Rates?

  • Savings accounts offer higher rates than a checking account.
  • Money market accounts offer higher rates than savings account.
  • A Certificate of Deposit (CD) offers a higher rate than a money market.
  • A fixed annuity offers a higher rate than a CD.

What is a Money Market Account?

A money market is a type of bank account that pays a higher interest rate that requires a higher minimum deposit than a savings account.

Money market accounts are different from traditional savings accounts and certificates of deposit. Money market funds allow checks and a debit card while traditional savings account do not.

A money market is like a savings account. You can open it and save money there for as long as you want without needing to worry about a set term.

Most money market rates are variable, not fixed. This means that the rate and APY you receive can change as market conditions change. You must also maintain a minimum balance at all times.

Money market funds are protected up to $250,000 at banks that are insured by the FDIC. Member-owned accounts in federally insured credit unions have the protection of up to $250,000 from the NCUSIF.

CD or Money Market

A money market account is a type of bank account that pays a higher interest rate than traditional savings.

If you’re looking for the best option for money available, a money market prevails. The major difference between traditional savings accounts and money market accounts is that the latter have checks and debit cards.

A money market account is a great place to save your liquid assets while also earning some interest. Put away enough for the long term like retirement or college savings and still have access to your full balance with no penalties.

Most money market rates are variable, not fixed meaning the rate can change.

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Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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