Compare money market accounts by rates 2021 | finder.com

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Compare money market accounts of March 2021

Money market savings accounts help you earn a competitive interest while giving you access to your money.

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Our pick for a money market account: CIT Bank Money Market

0.45%

APY

  • High-interest rate
  • No monthly service fees
  • Quick and easy access to funds
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This article was reviewed by Brad Stevens, a member of the Finder Editorial Review Board and 30-year veteran of the credit industry who specializes in rehabilitating struggling banks.

Finding the right money market account involves comparing several factors, including APYs, fees and other features. We dug deep and reviewed money market accounts from more than 70 institutions to help you find the best one for your lifestyle.

Compare money market accounts

Enter your deposit amount into the table to see how much interest you could earn across all accounts. Also, sort the table by APY, deposits and fees to compare your options.

$
$
months
Name Product Interest rates (APY) Fee Minimum deposit to open Interest earned
CIT Bank Money Market
Finder Rating: 3.9 / 5: ★★★★★
CIT Bank Money Market
0.45%
$0
$100
A savings account with a higher-than-average rate and minimal fees.
UFB Direct Premium Money Market Account
Finder Rating: 3.1 / 5: ★★★★★
UFB Direct Premium Money Market Account

0.20% on $25,000+
0.10% on $0 to $24,999.99
$10 per month
(can be waived)
$5,000
Enjoy the security and earning potential of a savings account while maintaining the flexibility to write checks.
Nationwide Money Market Plus
Nationwide Money Market Plus
0.50%
$8 per month
(can be waived)
$1,000
Enjoy low fees and up to $10.00 domestic ATM fees reimbursed per month.
Axos Bank High Yield Money Market account
Axos Bank High Yield Money Market account
0.60%
$0
$1,000
Offers the security of traditional savings with the advantage of high interest rates and limited transactions.
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What is a money market account?

A money market savings account is like a marriage between checking and a savings account. You get the savings benefit of a higher interest rate while enjoying the convenience of an ATM card and checks.

Still, there are some downsides. Money market accounts typically have higher opening balance requirements and you’re still limited to six monthly transactions.

How do I compare money market accounts?

While most features of a money market account are like those of an everyday savings account, you’ll want to weigh factors that include:

  • Interest rate. Some accounts offer one rate no matter how much your account balance is, while others tier interest rates by ranges. With tiered interest rates, balances of $100,000 or more tend to earn the highest rates, though structures vary by bank.
  • Access to funds. Depending on the account you choose, you may be able to access your money through ATMs, debit cards, online banking, mobile banking, checks and branches.
  • Minimum balance requirement. Money market accounts typically require a set minimum balance in order to earn the highest interest rate. This amount could range from a few hundred dollars to several thousand dollars. Most money market accounts also require a certain minimum deposit to open the account.
  • Online trading. If you plan to trade online, consider opening an account linked to an online trading account. The seamless integration can help you manage your equity trading needs with ease.
  • Fees and charges. These accounts don’t often come with ongoing maintenance or management fees. But you could pay a transaction fee right away or after a limited number of free transactions each month. You might also pay a fee for needing checks and help in person. Online and phone transactions are generally free.

How do money market accounts compare to savings and checking?

Here’s a quick glance at how money market accounts compare to savings and checking accounts:

AccountBest forEarns interestCheckwriting privilegesATM accessMinimum depositMonthly feeSix transaction limitFederally insured
Money marketThose who want easy access to their savings
$2,500 to $10,000
SavingsThose who want to store their money for a later use
Not typically$0 to $100
CheckingThose who need an everyday spending accountNot typically
$0 to $25

Is a money market account a type of money market fund?

No. A money market account is very different than a money market fund, which is a type of mutual fund investment that is not insured by the FDIC and can lose value. Money market fund providers go even further and invest your money in fixed income securities, though they’re still considered one of the least risky investments available.

What’s the average rate on a money market account?

The national average for money market accounts is 0.06%, according to the Federal Reserve. However, some high-yield money markets earn around 0.5% APY.

How liquid is a money market account?

Money market accounts are more liquid than a savings account, but less liquid than a checking account. Think of them as a happy medium between the two. You get the same ATM access and checkwriting privileges that you would with a checking account, but you’re still limited to six monthly transactions like you are with a savings account.

Types of money market accounts

There are five types of money market accounts:

  • Traditional money market accounts. These are a type of savings account that come with some perks only found with checking accounts. You earn a competitive interest rate, but you also get a debit card and checks.
  • High-yield money market accounts. These are similar to traditional money market accounts, but they have even higher interest rates because they’re offered by online or digital banks, which have lower overhead.
  • Rewards money market savings account. As the name implies, this type of money market account comes with rewards, such as cash back on debit card purchases, higher interest rates, discounted fees or more.
  • Joint money market accounts. This is a traditional or high-yield money market account that’s jointly owned by two or more people.
  • Business money market accounts. Open a money market account for your business to grow your savings while maintaining easy access to funds and checkwriting privileges.

Money market account pros and cons

Money market accounts are FDIC insured and come with these advantages and disadvantages:

Advantages

  • High interest rates. Most money market accounts have better interest rates than regular savings accounts, resulting in a noticeable difference to your bottom line.
  • Easy access to funds. Unlike savings accounts, money market accounts often come with ATM cards and check-writing privileges.

Disadvantages

  • Balance requirements. Money markets have higher opening deposits than regular savings accounts, ranging from a few hundred dollars to $10,000.
  • Limited transactions. Similar to savings accounts, you’re limited to six outgoing transactions each month, with fees on every transaction over the limit.
  • Fees can add up. You could be on the hook for fees if your balance dips below a minimum requirement, you use your debit card overseas or you overdraw on your account.

    How to open a money market account

    Follow these steps to open your very own money market savings account:

    1. Compare money market accounts to find one that’s right for you.
    2. Visit the provider’s website to see if you can apply online or if you’ll need to call or visit a local branch.
    3. Gather all your required documents, including your Social Security number, government issued-photo ID and personal information.
    4. Apply for your account.
    5. Fund your new account with a linked bank account, wire transfer or money order.

    What eligibility criteria is required for a money market savings account?

    It depends on the bank, but you’ll generally need to meet these requirements to open an account:

    • At least 18 years old
    • US citizen or resident
    • Valid US residential address
    • Social Security number
    • Government-issued photo ID
    • Minimum opening deposit

    What is the top money market account?

    There are several top-rated money market accounts available today, but one of the best money market accounts is the NBKC Personal Money Market Savings account. While most money market accounts require opening deposits of $2,500 or more, you only need $5 to open this account. Plus, you’ll earn 0.25% APY on your total balance and enjoy no fees for monthly maintenance, overdrafts, returned items, nonsufficient funds and incoming domestic wire transfers.

    Are money market accounts safe?

    Yes. As long as the institution you keep your funds with is FDIC insured, you won’t have to worry about losing your money. When you open a money market account backed by federal deposit insurance, your account is typically insured for up to $250,000.

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