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.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
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.
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.
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:
Some of the benefits:
- 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
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.
They also 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. 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.
You'll need to pay attention to 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
-
3 Ways to Stretch the 2026 Social Security COLA For Your BudgetThree steps retirees can take to stretch the Social Security COLA to fit their budgets.
-
How to Keep Your Charitable Giving Momentum Going All YearInstead of treating charity like a year-end rush for tax breaks, consider using smart tools like DAFs and recurring grants for maximum impact all the year.
-
Uber Takes Aim at the Bottom Lines of Billboard LawyersUber has filed lawsuits and proposed a ballot initiative, in California, to curb settlements it claims are falsely inflated by some personal injury lawyers.
-
Uber Takes Aim at the Bottom Lines of Billboard Personal Injury Lawyers
Uber has filed lawsuits and proposed a ballot initiative, in California, to curb settlements it claims are falsely inflated by some personal injury lawyers.
-
11 Cities With the Cheapest Groceries in the USIf you live in one of these 11 cities, you're paying less than the rest of the country to keep your fridge stocked.
-
Giving Tuesday 2025: 'Every Small Act Makes a Major Difference'GivingTuesday encourages generosity in any form, from donating to charity to helping your neighbors.
-
How to Position Your Portfolio for Lower Interest RatesThe Federal Reserve is far from done with its rate-cutting regime. This is how investors can prepare.
-
Moves to Manage the Soaring Costs of Owning a CarIt's costing more and more to keep a car on the road, but you can drive some costs down. Here's how to get a better deal on insurance premiums, repairs and gas
-
My First $1 Million: Oil Industry Engineering Manager, 67, Chapel Hill, N.C.Ever wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
-
I'm a Financial Literacy Expert: Bubble-Wrapping Our Kids Robbed Them of Resilience. Now What?By raising them to think they're amazing no matter what and lifting them over obstacles, we left them unprepared to work in the real world.
-
I'm a Financial Planner: If You're a High Earner, You Need an 18-Month Safety NetNo job seems to be safe in this age of AI. If you make a larger-than-usual salary, then you need to have a larger-than-usual emergency fund. Here's why.
