High money market account rates, some over 4% APY, offer good returns

From Yahoo Finance: 2025-06-24 06:00:00

Looking for the top rates on money market accounts? MMAs offer high interest rates, liquidity, and flexibility, with some accounts paying above 4% APY. National average rate is 0.62%, but the best accounts can match high-yield savings rates. Rates have fluctuated due to changes in the federal funds rate.

In recent years, MMA rates have varied due to economic conditions. After the 2008 crisis, rates were near zero, but rose as the economy improved. In 2020, rates fell again due to the pandemic. By late 2023, rates rose to over 4%. Rates stayed high in 2024 but began to decline after late 2024 rate cuts.

When comparing MMAs, consider factors beyond interest rates like minimum balance requirements and fees. Some accounts have high minimum balance requirements or monthly fees. Shop around for accounts with competitive rates and no restrictions. Ensure your account is insured by the FDIC or NCUA for up to $250,000 per depositor.

Today’s money market account rates are still high, with some accounts offering over 4% APY. Earnings on a $10,000 deposit depend on the APY and compounding frequency. MMAs are safe and flexible but may have downsides like high minimum balance requirements and variable rates that can affect future earnings.

Read more: Best money market account rates today, June 24, 2025 (Earn up to 4.41% APY)