Best Money Market Rates For March 2024 (Up to 5.48%)

Shawn Plummer

CEO, The Annuity Expert

The Best Money Market Rates

Compare the best money market rates from 475 banks and credit unions. Then, you’ll be able to find the perfect account for your short-term savings goals and long-term investments. The table is sorted from the highest money market rates to the lowest.

As of March 1, 2024, the best money market rate is 5.48% APY with First Internet Bank. The minimum account opening deposit is $1,000,000.00.

Money Market Rates

Disclaimer: Interest rates change daily, and we’re doing our best to keep you updated. Please double-check with your bank or credit union!

Top 5 Highest Money Market Interest Rates

  1. First Internet Bank– 5.48% APY
  2. Parke Bank– 5.35% APY
  3. Brilliant Bank– 5.35%
  4. Vio Bank– 5.30%
  5. American First Credit Union– 5.30%

Which Accounts Offers The Best Interest Rates?

Money market account rates typically offer higher interest rates than standard savings accounts because they require higher minimum balances. However, they often provide lower rates than certificates of deposit (CDs) due to their greater liquidity, as money market accounts usually allow for limited withdrawals and check-writing privileges.

For instance, a bank might offer 0.5% interest on a savings account, 1% on a money market account (with a minimum balance requirement), and 2% on a 1-year CD (which locks your money away for the term). The exact rates will vary based on the bank and current economic conditions.

What Is A Money Market Account?

A money market account is a deposit account that pays interest based on current interest rates in the money markets. It typically requires a higher minimum balance than a savings account but offers a higher interest rate in return. These accounts often allow limited check-writing privileges and may include a debit card to access funds.

The Best Money Market Rates Today

How Do Money Market Rates Work?

Money market account rates are interest rates that a bank or financial institution pays depositors holding money market accounts. These rates are variable and typically reflect the current state of interest rates in the broader economy. Banks adjust interest rates (APY) in response to changes like the Federal Reserve’s benchmark interest rate and the yield on Treasury bills.

For example, suppose the Federal Reserve raises its benchmark interest rate. In that case, banks will likely follow suit and increase their money market interest rates, allowing account holders to earn more on their deposits.

The Average Money Market Rate

How To Choose The Best Money Market Accounts

Now that we’ve covered the basics let’s consider the critical question: How to choose the best money market account? Here are a few crucial considerations:

  • Compare rates: Look for the highest-interest money market accounts, but remember to balance this against other factors.
  • Consider accessibility: How easy is it to withdraw your money? Online access and ATM cards can make money market accounts more convenient.
  • Check fees and minimum balances: Some accounts require a high minimum balance or charge fees that can affect your earnings.
  • Customer service: Accessible and helpful customer service can significantly impact your banking experience.

Utilize tools such as a money market account calculator to analyze potential earnings based on different APYs, deposit amounts, and timeframes.

Money Market Rates Pros And Cons

Money market interest rates offer several advantages: they typically provide higher interest earnings than traditional savings accounts and often come with check-writing and debit card privileges, offering a balance of growth and liquidity.

However, the downsides include fluctuating rates that can change with market conditions, potentially lowering your return. Moreover, money market accounts often require a higher minimum balance, and falling below this threshold can result in fees or lower interest rates.

For example, a high minimum balance requirement may tie up funds that could be used elsewhere, but the trade-off is a higher interest rate compared to a standard savings account.

Who Has The Best Money Market Rates?

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

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

Finally, remember that the best money market rates may change over time, so staying up-to-date on the latest offers from financial institutions is essential.

Money Market Account Calculator

Compound interest can significantly affect the amount you can save over time. Our calculator lets you see how different money market rates and deposits at varying times of the month can affect your savings plan! With just a few inputs, you’ll better understand what’s possible when growing your wealth.

Next Steps

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 high-yield money market account may suit you. However, keep in mind that the interest rates on these accounts are variable, so 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 a money market fund and certificates of deposit. Click below to get started finding the best annuity rates for you.

Current Money Market Account Interest Rates

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FAQ About money market account interest rates

What is the average interest rate on a money market?

The average interest rate for money market accounts hovers around 4.00%, although this rate can increase significantly if you’re willing to maintain a higher minimum balance. Jumbo money market accounts, for instance, can offer rates well above the average.

Are money market rates fixed?

Unlike certificates of deposit (CDs), money market rates are not fixed. They are variable and can change over time, usually in response to changes in the overall economy.

What bank has the best money market rates?

Regarding all-around value, Raisin has earned recognition for offering some of the best jumbo money market rates. Their combination of excellent rates, remarkable customer service, and digital accessibility makes them a standout choice for many investors.

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

Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

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

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