Best money market account rates today, December 26, 2024 (earn up to 5.00% APY)

With interest rates starting to drop following the Fed’s recent rate cuts, it’s more important than ever to ensure you’re earning a competitive rate on your savings.One option you might want to consider is a money market account (MMA).

These accounts are similar to savings accounts; they offer interest on your balance, but may also include a debit card and/or check writing option.

Wondering where to find the highest money market rates today?Here’s what you need to know.

Historically, interest rates on money market accounts have been quite high. The national average interest rate on money market accounts is just 0.66%, according to the FDIC, but the highest money market rates often pay upwards of 4% APY, or even more. at the proposed rates. high yield savings accounts.

Here are some of the best MMA prices available today:

See our picks for the 10 best money market accounts available today>>

Additionally, the table below lists the best savings and money market account rates available today from our approved partners.

The Fed has kept its target range for the federal funds rate at 5.25%-5.50% since July 2023. However, as inflation cooled and the economy improved, the Fed cut the federal funds rate by 50 basis points in September and another 25 basis points in November. The Fed made its final rate cut for the year (25bps) in December 4.25%-4.50%.

As a result, money market exchange rates started to decrease. Further rate cuts are expected in 2025, meaning now may be the last chance for savers to take advantage of today’s high rates.

Read more. Can you lose money on the money market?

Given that interest rates on money market accounts are still high, these accounts are an attractive option for savers. However, deciding whether it’s the right time to put money into a money market account also depends on your financial goals and broader economic conditions Some key factors to consider:

• Liquidity needs. Money market accounts offer easy access to your money because they often come with check writing capabilities or debit card access (although there may be a limit on monthly withdrawals) if you need to keep your money accessible while still earning a decent return you receive, a money market account may be ideal.

• Savings goals. If you have short-term savings goals or want to build an emergency fund, a money market account can provide a safer place for your cash with better returns than most traditional savings accounts.

• Risk tolerance. For conservative savers who prefer to avoid the ups and downs of the stock market, money market accounts are attractive because they are FDIC-insured and cannot lose principal investments are needed to generate higher returns that will get you to your savings goal.

Given that interest rates are still high, now may be a good time to consider a money market account, especially if you’re looking for safety, liquidity and better returns than traditional savings accounts. Comparing rates from different institutions will help you find the best options available :