Federal Reserve cuts rates, causing MMA rates to fall, but some high-yield accounts offer over 4% APY.

From Yahoo Finance: 2025-04-18 06:00:00

The Federal Reserve has cut the federal funds rate three times in 2024, resulting in falling deposit interest rates, including money market account rates. While the national average MMA rate is 0.63%, top high-yield accounts offer over 4% APY. Online banks are known for competitive rates, but credit unions also offer high rates with fewer fees. Money market accounts are low-risk and FDIC-insured up to $250,000 per depositor, per institution. Consider minimum balance requirements and transaction limits before opening an MMA. Stocks, mutual funds, and ETFs offer about a 10% return annually, making them a good option for growing wealth. If you need guidance, consider speaking with a financial advisor or using a robo-advisor for investment management.



Read more at Yahoo Finance: Best money market account rates today, April 18, 2024 (up to 4.41% APY return)