credit & debt

Earn More Interest on Your Savings

Money market deposit accounts and savings accounts provide safe, easily accessible places to store cash.

As the Federal Reserve boosts short-term interest rates, yields on bank deposit accounts and money market mutual funds have been ticking up.

Unlike money funds, which are investment accounts that contain high-quality, short-term securities (see kiplinger.com/links/moneymarket), money market deposit accounts (MMDAs) have Federal Deposit Insurance Corp. coverage. That means if the bank holding your MMDA goes belly-up, you won’t lose your cash (up to the insured limit of $250,000 per depositor per bank in each account ownership category). MMDAs and savings accounts both provide safe, easily accessible places to store cash. And lately, top rates on MMDAs and savings accounts have also been close, says Nick Clements, cofounder of personal finance site MagnifyMoney.com.

If the ability to withdraw money directly from savings is important to you, an MMDA has the edge over a savings account. MMDAs commonly come with a debit or ATM card. (The Synchrony High Yield Savings account, however, yields a respectable 1.75% and comes with an ATM card; plus, fees that out-of-network U.S. ATM operators charge are refunded up to $5 per month.)

Among top-yielding MMDAs, the online Redneck Bank Mega Money Market account comes with a debit card and has consistently offered strong rates over the past few years. It now yields 2% on up to $50,000 (0.5% yield on the portion of the balance higher than that cap).

Most Popular

Top Bear Market Tips from 10 Financial Advisers
investing

Top Bear Market Tips from 10 Financial Advisers

When a bull market turns into a bear market, it can be hard to know what to do. Take comfort in the guidance of 10 financial professionals.
June 30, 2022
Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
The 15 Best Stocks for the Rest of 2022
stocks to buy

The 15 Best Stocks for the Rest of 2022

The lesson of the past two years: Be ready for anything. Our 15 best stocks to buy for the rest of 2022 reflect several possible outcomes for the seco…
June 21, 2022

Recommended

Financial Advice from America’s Founding Fathers
credit & debt

Financial Advice from America’s Founding Fathers

What money-management guidance can we glean from the words — and experience — of Benjamin Franklin, Thomas Jefferson, Alexander Hamilton and others?
June 30, 2022
When Will Student Loans Be Forgiven?
Paying for College

When Will Student Loans Be Forgiven?

Millions of Americans are waiting for the Biden Administration’s next hint, which could come later this summer, at how he’ll address the student loan …
June 27, 2022
Best National Banks
banking

Best National Banks

These large, brick-and-mortar institutions have branches in several states (as well as online banking), so they’re solid choices if in-person assista…
June 23, 2022
Best Banks for Retirees
banking

Best Banks for Retirees

With these institutions, retirees avoid pesky fees on checks and paper statements and have access to an array of additional wealth and investment serv…
June 23, 2022