Federal Reserve cut target rate in 2024, causing money market rates to fall.
From Yahoo Finance: 2025-05-18 06:00:00
The Federal Reserve has cut its target rate in 2024, causing money market account rates to fall. The national average money market account rate is currently 0.62% according to the FDIC, but some top accounts offer rates of 4% APY. Consider opening an account now to take advantage of high rates.
The amount of interest earned on a money market account depends on the annual percentage rate (APY) and how often interest compounds. For example, $1,000 in an account with a 0.64% interest rate would grow to $1,006.42 after one year. Choosing an account with 4% APY would result in a balance of $1,040.81 after a year.
Depositing more money in a money market account increases potential earnings. For instance, depositing $10,000 in an account with 4% APY would result in a balance of $10,408.08 after one year, including $408.08 in interest. Compare rates to maximize earnings.
Read more at Yahoo Finance: Best money market account rates today, May 18, 2025 (best account provides 4.41% APY)