Federal Reserve cuts target rates, average money market rate at 0.62%, top accounts offer 4% APY.

From Yahoo Finance: 2025-06-02 10:56:00

With the Federal Reserve cutting target rates, money market account rates are falling. The national average MMA rate is 0.62%, but top accounts offer 4% APY. Act fast to take advantage of high rates. Compare rates to maximize earnings.

Interest earned from a money market account depends on the annual percentage rate (APY). With an average rate of 0.64% and daily compounding, a $1,000 deposit grows to $1,006.42 after a year. Opting for a 4% APY account would yield $1,040.81 in the same period. Deposit more for higher earnings.

Read more: Best money market account rates today, June 1, 2025 (best account provides 4.41% APY)