Federal Reserve cuts rates, causing MMA rates to fall, but top accounts offer 4% APY.

From Yahoo Finance: 2025-04-20 06:00:00

The Federal Reserve has cut its target rate three times in 2024, causing deposit rates to fall. It’s crucial to compare money market account (MMA) rates to maximize earnings. The national average MMA rate is 0.63%, but top accounts offer rates of 4% APY. Act now to benefit from high rates.

Interest earned in 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. Opting for a 4% APY account would yield $40.81 in interest.

The more you deposit in a money market account, the more you can earn. A $10,000 deposit in a 4% APY account would result in a balance of $10,408.08 after one year, with $408.08 in interest. Compare rates and consider opening an account to maximize your earnings.

Read more: Best money market account rates today, April 20, 2025 (best account provides 4.41% APY)