Federal Reserve rate cuts have lowered money market account rates, but top accounts offer 4% APY.

From Yahoo Finance: 2025-05-11 15:43:00

The Federal Reserve cut its target rate three times in 2024, causing deposit rates, including money market account rates, to fall. The national average money market account rate is 0.63%, but some top accounts offer rates of 4% APY. Consider opening an account now to take advantage of high rates.

Interest earned from a money market account depends on the annual percentage rate (APY) and compounding frequency. For example, depositing $1,000 at 0.64% APY with daily compounding would yield $6.42 in interest after a year. Opting for a 4% APY account would earn $40.81 in interest with the same deposit.

The more you deposit in a money market account, the more you can earn in interest. If you deposit $10,000 in a 4% APY account, you could earn $408.08 in interest after a year. Compare rates to maximize your earnings.



Read more at Yahoo Finance: Best money market account rates today, May 11, 2025 (best account provides 4.41% APY)