From Yahoo Finance: 2025-05-27 06:00:00

Looking for the top rates on money market accounts (MMAs)? Unlike traditional savings accounts, MMAs offer better returns, check-writing privileges, and debit card access. National average interest rate for MMAs is 0.63%, but best rates can exceed 4% APY, similar to high-yield savings accounts.

Historically, MMA rates have fluctuated due to changes in the federal funds rate. After the 2008 crisis, rates were low, but increased as the economy improved. COVID-19 led to a rate cut in 2020. By 2023, rates were at 4% or higher, while in 2024, some accounts paid over 5% APY.

As of today, MMA rates are high, but starting to trend downward after Fed rate cuts in late 2024. It’s important to consider factors beyond just interest rates when choosing an MMA, such as minimum balance requirements, fees, and withdrawal limits.

Ensure the MMA you choose is insured by the FDIC or NCUA, guaranteeing deposits up to $250,000 per institution. Most MMAs are federally insured, but always double-check. Rates are still high today, with the highest available rate at 4.51% APY.

How much can you earn with $10,000 in an MMA? It depends on the APY and compounding interest. For example, with a 4% APY and monthly compounding, you could earn $407.44 in interest after one year, totaling $10,407.44. MMAs are safe and flexible but have downsides like high minimum balances and variable rates.

Read more: Best money market account rates today, May 27, 2025 (Earn up to 4.41% APY)