If you're looking for a safe place to store your cash while earning interest, a money market account may be a good option. Money market accounts are similar to traditional savings accounts but typically offer higher interest rates and more flexibility when it comes to accessing your money. And with interest rates on the rise, now may be a good time to consider opening a money market account.
You could earn nearly 5% on a money market account right now. See what today's average and top rates are for money market accounts. According to Bankrate, the current national average for money market accounts is 0.16%. However, many banks and credit unions are offering much higher rates, with some topping out at over 4%.
We ranked the top 10 money market accounts based on APY, maintenance fees, and more for May 2023. Our top pick is Ally Bank, which offers a 2.50% APY with no monthly maintenance fees. Other top contenders include Capital One 360, Discover Bank, and TIAA Bank.
Here are today's best rates and the current average yields for traditional savings accounts, high-yield savings accounts, and money market accounts. Traditional savings accounts typically offer the lowest interest rates, with many paying less than 0.10% APY. High-yield savings accounts can offer rates of 1.00% or higher, but may come with more restrictions on accessing your money.
The best high-interest accounts can be opened online or at a branch to help you earn interest on your money. All accounts are FDIC- or NCUA-insured, which means your deposits are backed by the government up to $250,000 per account.
The recent increase in interest rates on various types of savings products is bringing back money market accounts. If you weren't around for the heyday of money market accounts in the 1980s and 1990s, they're worth a second look now.
To find the best high-yield savings account for you, review NerdWallet's list of the best overall, federally insured high-rate accounts. This list includes online banks and credit unions that offer some of the highest rates available.
Quick Take: TIAA Bank offers checking, savings, and money market accounts for U.S. residents. The bank's money market account offers a yield of up to 2.15% APY, with no monthly maintenance fees.
The latest average rates on savings accounts and high-yield savings accounts show that interest rates are on the rise. As the Federal Reserve continues to raise interest rates, savers may see even higher rates in the coming months.
Read our guide to the savings account offered by U.S. Bank. This savings account has some fees you should be aware of before making a final decision. However, it also offers some benefits, such as free online banking and mobile deposits.
Overall, money market accounts can be a great option for savers looking for a safe place to store their cash while earning higher interest rates. With the top rates currently over 4%, it's worth shopping around to find the best account for your needs.