Federal Reserve rate cuts have caused money market rates to fall, but some banks offer high rates.

From Yahoo Finance: 2025-03-23 14:56:00

The Federal Reserve has 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 currently at 0.64%, but some top accounts offer rates of 4% APY and higher. The best money market account rate today is offered by First Foundation Bank at 4.50% APY with a $1,000 minimum opening deposit. The amount of interest you can earn from a money market account depends on the annual percentage rate (APY), with higher rates leading to more earnings. For example, $1,000 in an account at 0.64% would grow to $1,006.42, while at 4% APY, it would grow to $1,040.81. The more you deposit, the more you can earn – for example, $10,000 at 4% APY would result in a total balance of $10,408.08 after one year.



Read more at Yahoo Finance: Money market account rates today, March 23, 2025 (best account provides 4.50% APY)