The Best Money Market Account Rates

Shawn Plummer

CEO, The Annuity Expert

Do you want to find a secure place to store your money? A money market account could be the perfect solution for you! In this guide, we will explain what a money market account is and how it works. We will also dispel some common myths about these accounts and help you decide if one is right for you. Compare the best money market account rates from 423 banks and credit unions across the United States.

Earn The Highest Interest Rates On Savings Today

Fixed annuities are almost identical to Certificates of Deposit (CDs) accounts and provide higher interest rates and penalty-free withdrawals for income. Why settle for less than 1% on your money when you can earn 3% and liquidity?

TermInsurance CompanyInterest Rate
24 MonthsOceanview Annuity2.85%
36 MonthsCanvas Annuity3.80%
48 MonthsOceanview Annuity3.35%
60 MonthsCanvas Annuity3.80%
72 MonthsOceanview4.30%
*Fixed annuities are only for saving money to use in retirement.

Disclaimer: This is a review. The Annuity Expert is not associated with a bank or credit union. However, fixed annuities are sold at most financial institutions. Our goal is to help you find the highest interest rates for your retirement savings.

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: 2.85%
  • 3-YEAR TERM: 3.80%
  • 4-YEAR TERM: 3.70%
  • 5-YEAR TERM: 3.80%
  • 6-YEAR TERM: 4.30%
  • 7-YEAR TERM: 3.85%
  • Grow your money as fast as possible
  • Principal protection
  • The 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 a 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%
Triple CompoundingYesNo
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.

Which Accounts Offers The Best Bank Rates?

  • Savings accounts offer higher rates than a checking account.
  • Money market accounts offer higher rates than a 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 account is a type of savings account that typically offers higher interest rates than a traditional savings account. These accounts also usually have higher minimum balance requirements and may require you to maintain a certain balance to avoid fees. Money market accounts are FDIC-insured, just like regular savings accounts, which means your deposits are protected for up to $250,000.

  • 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 accounts 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.

How Do Money Market Accounts Work?

Money market accounts work similarly to regular savings accounts. You can deposit and withdraw money as you need it, and the account pays interest on your balance. The main difference is that money market accounts typically offer higher interest rates than regular savings accounts. This is because institutions can use the money in your account to invest in short-term debt, which often pays higher interest rates than longer-term debt.

What Are The Advantages?

The main advantage of a money market account is the higher interest rate. However, these accounts also have some disadvantages. First, they often have high minimum balance requirements. This means you may need to keep more money in the account than you would in a regular savings account. Additionally, money market accounts typically require you to maintain a certain balance to avoid fees. This can be difficult if you need to withdraw money frequently.

What Are The Disadvantages Of A Money Market Account?

There are a few potential disadvantages of money market accounts to consider before opening one. First, as we mentioned, these accounts often have higher minimum balance requirements than regular savings accounts. This means you may have to keep more money in your account to avoid fees.

Second, money market accounts typically have lower interest rates than other types of investment accounts, such as certificates of deposit (CDs) or individual retirement accounts (IRAs). This means you may be able to earn more interest on your money if you choose to invest it in another account.

Third, are that you have to maintain a certain balance, and if you need to withdraw money frequently, it can be difficult. Another disadvantage is that some people don’t like having their money “locked up” in an account where they can’t access it easily.

Finally, some money market accounts have restrictions on how often you can withdraw money from the account. If you need to access your money frequently, you may want to consider another type of account.

Why Should I Open A Money Market Account?

There are several reasons you might want to open a money market account. First, as we mentioned, these accounts typically offer higher interest rates than regular savings accounts. This means you can grow your money more quickly in a money market account than in a regular savings account.

Another reason to open a money market account is for the added security it offers. Money market accounts are FDIC-insured, which means your deposits are protected for up to $250,000. This can give you peace of mind knowing that your money is safe in the event of a bank failure or another economic crisis.

Finally, money market accounts can offer more flexible access to your money than other types of accounts. Many money market accounts allow you to write checks or use a debit card to withdraw cash, which can be helpful in an emergency.

Should I Open A Money Market Account?

Now that you know more about how money market accounts work, you can decide if one is right for you. If you are looking for a safe place to grow your money and don’t mind keeping a higher balance in your account, a money market account may be a good option for you. However, if you need to access your money frequently or want to earn the highest interest rate possible on your savings, you may want to consider another type of account.

Still not sure if a money market account is right for you? Our experts can help! Contact us today to learn more about money market accounts and other options for saving and investing your money.

How Do I Open A Money Market Account?

You can open a money market account at most banks and credit unions. To open an account, you will need to provide some personal information, such as your name, address, and Social Security number. You may also need to deposit a minimum amount of money into the account to get started. Once your account is open, you can start depositing and withdrawing money as needed.

What Is A Money Market Mutual Fund?

A money market mutual fund is a type of investment that pools money from many investors to purchase short-term debt obligations. Money market mutual funds are considered one of the safest types of investments, as they typically invest in high-quality, low-risk debt instruments.

How Do Money Market Funds Work?

Money market funds work by pooling money from many investors and using it to purchase short-term debt instruments, such as Treasury bills, commercial paper, and certificates of deposit. The fund then earns interest on the debt instruments it holds, and this interest is passed on to shareholders in the form of dividends.

What Is The Difference Between Between Money Market Accounts and Money Market Mutual Funds?

The main difference between money market accounts and money market mutual funds is that money market accounts are FDIC-insured deposit accounts, while money market mutual funds are not. Money market accounts offer depositors a higher level of safety and security than money market mutual funds.

What Is The Difference Between A Money Market Account And A Savings Account?

The main difference between a money market account and a savings account is that a money market account typically has higher interest rates and requires a higher minimum balance than a savings account. Money market accounts also usually have more restrictions on withdrawals than savings accounts. Finally, while both types of accounts offer FDIC insurance, only deposits in money market accounts are insured for up to $250,000 per depositor. Deposits in savings accounts are only insured for up to $100,000 per depositor.

Who Has The Best Money Market Rates?

When it comes to finding the best money market rates, there are a few things you need to consider. First, you need to decide what type of account you want: an FDIC-insured deposit account or a money market mutual fund. If you’re looking for safety and security, an FDIC-insured deposit account is a way to go. However, if you’re looking to maximize your interest earnings, a money market mutual fund may be the better option.

Once you’ve decided what type of account you want, you need to compare rates from different financial institutions. When comparing rates, be sure to look at the annual percentage yield (APY) rather than the interest rate. The APY is the true measure of how much interest you will earn on your account.

Finally, remember that the best money market rates may change over time, so it’s important to stay up-to-date on the latest offers from financial institutions.

The following banks offer the best money market banks:

Certificates Of Deposits or Money Market Accounts?

If you’re looking for a safe place to park your cash, you have two basic options: certificates of deposit (CDs) and money market accounts. Both are FDIC-insured and offer guaranteed returns, but there are some key differences between the two.

Money market accounts typically provide more flexibility in how you access your money. For example, some money market accounts allow you to write checks or make withdrawals using a debit card. However, these accounts usually have higher minimum balance requirements and may charge fees if you don’t maintain a certain balance.

CDs typically offer fixed interest rates, which means you know exactly how much you’ll earn on your investment. CDs also usually have early withdrawal penalties, so if you need to access your money before the CD matures, you may forfeit some of your interest.

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

Conclusion

If you are looking for a safe place to invest your money and earn a higher interest rate than what you would get from a savings account, a money market account may be right for you. However, keep in mind that the interest rates on these accounts are variable so that they could go up or down depending on economic conditions. If you want a guaranteed return on your investment, consider purchasing a fixed annuity. These products offer higher interest rates than both money market accounts and certificates of deposit. Click below to get started finding the best annuity rates for you.

Best Money Market Account Rates

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Frequently Asked Questions

How do I get out of a money market account?

The best way to get out of a money market account is to close it and transfer the funds to another account. You may also be able to withdraw the funds, but you may incur fees for doing so. Check with your bank or financial institution to see what options are available to you.

What is a money market IRA?

A money market IRA is an individual retirement account that allows you to invest in a variety of securities, including money market funds. Money market IRAs typically offer higher interest rates than traditional IRAs, but there is also a greater risk of loss. Before investing in a money market IRA, be sure to research the fees and risks involved.

How much interest does a money market account earn?

The interest rate on a money market account varies, but it is typically higher than the interest rate on a savings account. The exact amount of interest you earn will depend on the bank or financial institution where you have your account, as well as the current market conditions.

Why are money market rates so low?

There are a few reasons why money market rates may be low. One reason is that the Federal Reserve has kept interest rates low in order to stimulate the economy. Another reason is that there is more competition among banks and financial institutions for deposits, which has driven down rates. Finally, economic conditions such as slow growth and low inflation can also lead to low money market rates.

What is a good interest rate for a money market account?

A good interest rate for a money market account is one that is higher than the average rate. The average rate is currently around 0.20% APY. Rates can vary depending on the bank or financial institution you use. Some banks may offer rates as high as 0.50% APY. Check with your bank to see what rates are currently being offered.

Which of the following usually offers money market funds?

Banks, credit unions, and brokerage firms are among the financial institutions that offer money market funds. These funds typically offer higher interest rates than savings accounts and CDs. Check with your bank or broker to see what options are available to you.

What is a jumbo money market account?

A jumbo money market account is a type of account that has a higher minimum balance requirement than a regular money market account. The minimum balance required for a jumbo account is typically $100,000. Jumbo accounts often offer higher interest rates than regular accounts. Check with your bank to see what options are available to you.

What is the best online money market account?

The best online money market account is one that offers a high-interest rate and low fees. Some banks may offer special rates for online accounts. Check with your bank to see what options are available to you.

How safe are money market accounts right now?

The current state of the economy suggests that now might not be the best time to invest in a money market account. While there is always some risk involved in any investment, money market accounts are generally considered to be one of the safest places to put your money. However, with interest rates so low right now, you may not earn much in the way of returns. You may want to consider other options, such as a savings account, certificate of deposit, or even a regular checking account, which often offer higher interest rates than money market accounts. Whatever you decide, be sure to do your research and understand the risks involved before making any decisions.

What are some alternatives to a money market account?

If you’re looking for a place to park your cash that offers higher interest rates than a money market account, you might want to consider a savings account, certificate of deposit, fixed annuity, or even a regular checking account. High yield savings accounts typically offer slightly higher interest rates than money market accounts, although the latter often has more flexible withdrawal rules.

Is there a limit on how much I can deposit in a money market account?

Most money market accounts have a maximum deposit limit of $250,000. This limit is set by the Federal Deposit Insurance Corporation (FDIC), which insures deposits up to this amount. If you have more than $250,000 to invest, you may want to consider opening multiple accounts at different banks or credit unions to spread your risk around.

Is there a minimum balance required for a money market account?

While there is no minimum balance required to open a money market account, some banks or credit unions may require you to keep a certain amount of money in the account to avoid fees. For example, Bank of America requires a minimum balance of $500 for its eBanking Money Market Savings account.

How often can I withdraw money from my money market account?

Federal law limits the number of withdrawals and transfers you can make from a money market account to six per month. However, your bank or credit union may impose even stricter limits. For example, Bank of America only allows four withdrawals or transfers per month from its eBanking Money Market Savings account.

What fees are associated with a money market account?

While money market accounts offer many benefits, there are some potential drawbacks to be aware of as well. One is that you may be charged fees for certain types of transactions, such as withdrawals made by check or transfers made to another account. Additionally, if you make more than six withdrawals or transfers in a month, you may be charged a fee by your bank or credit union. Be sure to read the fine print carefully before opening a money market account, so you understand all of the potential fees.

When can I access my money in a money market account?

While money market accounts offer many benefits, one potential downside is that you may not have immediate access to your funds. For example, if you need to withdraw cash from your account, you may have to wait a few days for the check to clear. Additionally, some banks or credit unions may require you to give notice before making a withdrawal. Be sure to check with your bank or credit union to find out what their policies are.

Can I write checks from my money market account?

One of the benefits of a money market account is that you can write checks from the account and use it much like a regular checking account. This can be helpful if you need to make a large purchase or want to send money to someone. Just keep in mind that there may be some restrictions on how many checks you can write per month, and you may be charged a fee for each check you write. Be sure to check with your bank to see what their policies are.

What Is A Money Market Savings Account?

A money market savings account is a type of bank account that offers depositors a higher interest rate in exchange for keeping a higher balance in the account. Money market savings accounts are FDIC-insured, which means your deposits are protected in the event of a bank failure or other economic crisis.

What are money market instruments?

Money market instruments are a type of investment that pools money from many investors to purchase short-term debt obligations. Money market instruments are considered one of the safest types of investments, as they typically invest in high-quality, low-risk debt instruments. Examples of money market instruments include Treasury bills, commercial paper, and certificates of deposit. Money market instruments typically offer investors a higher level of safety and security than other types of investments. However, money market instruments also usually have more restrictions on withdrawals than other types of investments. Finally, while most money market instruments are FDIC-insured, only some are insured for up to $250,000 per depositor. Deposits in savings accounts are only insured for up to $100,000 per depositor.

Is a money market better than a savings account?

A money market account typically has a higher interest rate than a savings account. However, it also usually has more restrictions on withdrawals. For example, some money market accounts require that you give notice before making a withdrawal. Additionally, while most money market instruments are FDIC-insured, only some are insured for up to $250,000 per depositor. Deposits in savings accounts are only insured for up to $100,000 per depositor. Therefore, if you are looking for a place to park your money where it will earn a higher interest rate and be relatively safe, a money market account may be a good option for you. However, if you need easy access to your money or are looking for the highest level of FDIC insurance, a savings account may be a better option.

Which is better money market account or a mutual fund?

A money market account is a type of bank account that offers depositors a higher interest rate in exchange for keeping a higher balance in the account. Money market accounts are FDIC-insured, which means your deposits are protected in the event of a bank failure or other economic crisis. A mutual fund is an investment vehicle that pools money from many investors to purchase a portfolio of securities. Mutual funds are not FDIC-insured and are subject to market risk, which means that the value of your investment can go up or down. Both money market accounts and mutual funds have their pros and cons, so it is important to consider your financial goals and objectives before deciding which is right for you. If you are looking for a place to park your money where it will earn a higher interest rate and be relatively safe, a money market account may be a good option for you. However, if you are looking to invest in a portfolio of securities with the potential for growth, a mutual fund may be a better option.

Is your money stuck for a set time in a money market account?

Most money market accounts have a minimum balance requirement and often require that you give notice before making a withdrawal. Additionally, while most money market instruments are FDIC-insured, only some are insured for up to $250,000 per depositor. Deposits in savings accounts are only insured for up to $100,000 per depositor.

What’s better than a money market account?

There are a few things that may be better than a money market account, depending on your financial goals and objectives. For example, if you are looking for a place to park your money where it will earn a higher interest rate and be relatively safe, a money market account may be a good option for you. However, if you need easy access to your money or are looking for the highest level of FDIC insurance, a savings account may be a better option. Additionally, if you are looking to invest in a portfolio of securities with the potential for growth, a mutual fund may be a better option. For a combination of safety and a higher interest rate, a fixed annuity may be a better option.

Can you lose money in a money marketing account?

While money market accounts are FDIC-insured, only some are insured for up to $250,000 per depositor. Deposits in savings accounts are only insured for up to $100,000 per depositor. Therefore, if you invest more than $250,000 in a money market account and the bank fails, you could lose some of your investment. Additionally, while most money market instruments are FDIC-insured, there is always the potential for loss when you invest in any type of security. Therefore, it is important to consider your financial goals and objectives before deciding if a money market account is right for you.

Are money market accounts safe?

Yes, money market accounts are safe. They are FDIC-insured, which means that your deposits are protected in the event of a bank failure or other economic crisis. Additionally, most money market instruments are FDIC-insured, so there is always the potential for loss when you invest in any type of security.

Do money markets earn interest?

Yes, money markets earn interest. The interest rate is usually higher than a savings account and lower than a CD. A fixed annuity earns more interest than all three savings accounts.

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

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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