Federal Reserve rate cuts in 2024 caused money market account rates to decrease
From Yahoo Finance: 2025-04-27 14:13:00
The Federal Reserve cut its target rate three times in 2024, causing deposit rates, including money market account rates, to decrease. The national average money market account rate is currently 0.63% according to the FDIC. Some accounts offer rates of 4% APY or higher – consider opening one now.
Interest earned from a money market account depends on the annual percentage rate (APY) and compounding frequency. With an average rate of 0.64% and daily compounding, a $1,000 deposit would grow to $1,006.42 after one year. Choosing a high-yield account at 4% APY would result in a balance of $1,040.81 with $40.81 in interest.
The more you deposit in a money market account, the more you can earn. For example, with a 4% APY and a $10,000 deposit, your balance after one year would be $10,408.08, earning $408.08 in interest. Compare rates and maximize your earnings.
Read more at Yahoo Finance: Best money market account rates today, April 27, 2025 (best account provides 4.41% APY)