A money market account gives you the flexibility of a checking account, with the high returns of a high-yield savings account. It makes them a perfect way to earmark money for saving goals if you don't want to tie up your money in CDs.
Money market accounts differ from traditional savings accounts, as they allow check-writing privileges and sometimes come with a debit card that can be used to access money at an ATM.
Therefore, they provide a higher level of liquidity that you likely won't find in other high-yield savings accounts. The APY of a money market account includes compounding interest, which is usually credited monthly.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Top money market accounts right now
Here are some of the best Money Market accounts. All are FDIC-insured banks or NCUA credit unions, letting you keep your savings safe:
Account | APY | Min. Opening Deposit |
|---|---|---|
4.25% | $100 | |
4.22% | $1,000 | |
4.03% | $100 | |
4.00% | $1,000 | |
3.85% | $1 | |
3.75% | $50 | |
3.50% | $5,000 |
Pros of a money market account:
Here are some of the benefits you'll gain:
- They offer higher interest rates than a traditional savings account
- You gain more access to your cash through debit card and check writing capabilities
- Money market accounts are safe ways to grow your cash, as most are FDIC or NCUA insured.
Cons of a money market account
Keep these things in mind before opening one:
- Many banks require a minimum deposit to open an account, and have minimum balance requirements as well
- The return on money market accounts can be lower historically than investing your money in the stock market
- The interest rate on money market accounts is variable, meaning that if the Federal Reserve cuts interest rates again, your money market rate could drop
- Having easy access to savings can encourage some to spend more than they ought to
Why open a money market account?
A money market account gives you the best of both worlds: You'll earn a higher rate of return with the ability to position investments if the Fed cuts rates in the future.
On top of this, they give you more access to your cash, unlike high-yield savings accounts from online banks, where you can access funds from an ATM card or online transfer.
Use this tool to compare some of today's top savings options fast:
There are a few things to keep in mind. One, interest rates on these are variable, so if the Fed decides to cut rates again in the future, it will lower your returns. The Fed has already cut rates twice this year, and there's a chance they might cut them again when they meet in December.
So, you'll need to pay attention to any Fed updates as they transpire. Moreover, some MMAs have minimum balance requirements, and a failure to meet these could result in monthly fees, offsetting some of your interest earnings.
Overall, they're among the most versatile savings solutions available, even with these considerations.
Related content
-
No-Penalty CD or High-Yield Savings? What Works Best NowDiscover which option can help you reach your savings goals quickly.
-
Seven Practical Steps to Kick Off Your 2026 Financial PlanningIt's time to stop chasing net worth and start chasing real worth. Here's how to craft a plan that supports your well-being today and in the future.
-
Are You Saving Too Much for Retirement? Know These Surprising DownsidesYour money may be better served outside of a retirement account.
-
Dental Cost Advice for New Retirees, From a New RetireeWhat I faced in my first dental bill after retiring.
-
Fish and Chips? More Like Fish and a Side of Customer Confusion and AngerYou expect chips — French fries, actually — to come with your order of fish and chips? Think again. This restaurant could be violating the truth-in-menu laws.
-
Does My Car Insurance Cover Rental Cars?Is it safe to decline the extra coverage car rental companies offer you when booking? Here's what you need to know.
-
Outsmarting the AI Job Algorithm: Why Older Women Need a StrategyWhen you're job hunting, AI may undermine your best efforts. Here's how older women can throw a wrench in the algorithm.
-
I'm Embarrassed to Ask: What Is a Life Insurance Trust?Life insurance trusts, particularly irrevocable life insurance trusts (ILITs), can minimize estate taxes and protect your heir's inheritance.
