Summary: Federal Reserve rate cuts have caused deposit rates to fall, but some money market accounts offer high APY rates.

From Yahoo Finance: 2025-04-13 06:00:00

The Federal Reserve has cut its target rate three times in 2024, causing deposit rates to fall. It’s crucial to compare money market account rates to maximize earnings. The national average MMA rate is 0.64%, but top accounts offer 4% APY. Consider opening an account now to benefit from high rates.

Interest earned from a money market account depends on the annual percentage rate (APY), which considers the base interest rate and compounding frequency. With an average 0.64% rate and daily compounding, a $1,000 deposit would yield $6.42 in interest after one year. Opting for a 4% APY account would earn $40.81.

Deposit size impacts earnings in a money market account. With a $10,000 deposit at 4% APY, you could earn $408.08 in interest after one year. The more you deposit, the more you stand to earn in interest. Compare rates and consider opening a high-yield money market account today to maximize your earnings.



Read more at Yahoo Finance: Best money market account rates today, April 13, 2025 (best account provides 4.41% APY)