From Yahoo Finance: 2025-05-25 06:00:00

The Federal Reserve has cut its target rate three times in 2024, causing deposit rates, including money market account rates, to fall. It’s crucial to compare rates to maximize earnings. The national average money market account rate is 0.62%, but some top accounts offer 4% APY. Consider opening an account now to capitalize on high rates.

Interest earned from a money market account depends on the annual percentage rate (APY) and compounding frequency. A $1,000 deposit at 0.64% APY with daily compounding would grow to $1,006.42 after one year, earning $6.42 in interest. Opting for a 4% APY account would result in a balance of $1,040.81 and $40.81 in interest.

Depositing more money in a money market account increases potential earnings. For example, a $10,000 deposit at 4% APY would yield a balance of $10,408.08 after one year, earning $408.08 in interest. Consider higher deposits for greater returns.



Read more at Yahoo Finance: Best money market account rates today, May 25, 2025 (best account provides 4.41% APY)