High-yield money market accounts offer rates over 4%, but declining post-Fed cuts

From Yahoo Finance: 2025-03-31 06:00:00

Money market accounts offer high interest rates, liquidity, and flexibility. Rates have fallen but some accounts still pay over 4% APY. TotalBank offers the best rate at 4.47% with a $25,000 minimum deposit. Interest rates fluctuate due to Federal Reserve changes, impacting account yields over time.

In 2025, MMA rates are high but declining post-Fed rate cuts. It’s crucial to consider factors beyond interest rate like minimum balances and fees when choosing an account. Look for accounts with competitive rates and no restrictions, insured by FDIC or NCUA for security up to $250,000.

National average MMA rate is 0.64%, but top rates reach 4% to 4.50% APY, similar to high-yield savings accounts. Earnings on $50,000 in an account with 4.5% APY can reach $2,303 in one year. While no MMAs offer 5% APY, some online banks do, so compare options for the best fit.

Read more: March 31, 2025 (earn up to 4.47% APY)