Updated April 24, 2020

Top 5 Best Money Market Rates: August 2020

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Good money market accounts offer high interest rates with more flexibility. Here are the top money market accounts to earn the most interest.

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Money market accounts are a safe way to grow your money.

But if you want even higher interest rates, look beyond brick-and-mortar banks. Online banks usually offer the best APY available.

Take a look at the current top money market account rates.

Here are the top money market accounts you should not ignore:

What Are Money Market Accounts?

A money market is a hybrid savings and checking account. It's also known as a "high-yield" account, because you typically get a higher interest rate, in exchange for a higher balance requirement.

Some reasons you may want a money market include:

  • Higher interest rates

  • More flexibility; many money market accounts offer check-writing privileges or ATM cards.

  • No maturity dates or early withdrawal penalties

  • Risk-free way to grow your money

  • FDIC insurance up to $250,000

Note that a money market account is considered a type of savings account. So the federal government limits you to 6 withdrawals/transactions per month.

Difference between money market and high-yield savings account:
Both are savings accounts with federal withdrawal limits. Money market accounts generally offer more flexibility, such as checks or ATM access. However, the trade off may be that you need to keep a higher balance.

Money Market Account vs. Money Market Mutual Funds
Don't confuse a money market account with a money market mutual fund. Money market mutual funds are subject to market risk, and therefore loss of value. They're are also not insured by the FDIC. Money market mutual funds are usually low risk, but there is a risk nonetheless.

Best Money Market Accounts

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Online banks have higher money market rates. They have less overhead, so they're able to offer higher interest rates and less fees. You can still conduct all your business through free online and mobile banking.

We narrowed down the best money market savings account for different needs below.

Some people compare the interest on money market accounts to APYs on CDs. The main difference is you don't tie up your money with a money market account. You can easily withdraw money when you need it, though there is a federal limit of 6 withdrawals per month.

Prime Alliance Bank: Best Money Market Rate

Prime Alliance Bank's Personal Money Market account offers one of the highest APYs currently on the market. To get the higher tier APY, you will have to deposit and maintain a balance of $10,000. If your balance falls below that, you'll earn a slightly lower - but still respectable - APY.

The account offers:

  • 1.01% APY. $1 to open.
  • No monthly service fees
  • Remote check deposits via mobile app
  • Ability to write checks

Prime Alliance Bank is a local bank in Woods Cross, Utah, but anyone can open and maintain the money market account online.

Note that Prime Alliance places a 60-day hold on new accounts funded by ACH.

CIT Bank: Best Money Market With Low Minimum Deposit

CIT Bank offers deposit accounts with very competitive APYs. You get a high rate on the Money Market Account no matter how large or small your balance (after the $100 opening minimum).

  • 0.85% APY
  • Set up direct deposit
  • People Pay account to account or through PayPal
  • Remote check deposits via mobile app
  • (Online bill pay coming soon)

However, the downside is that there is no ATM access, so you won't be able to withdraw your funds easily.

All America Bank: Best Money Market Rate ($500 Deposit)

All America Bank, based in Oklahoma City, offers an excellent online-only Mega Money Market account. The high interest rate is offered for balances up to $50,000. If you go above that amount, your APY drops significantly.

The opening deposit is $500. But after that, there is no minimum balance requirements.

  • 0.85% APY on balances up to $50,000; 0.25% APY on balances over $50,000. $500 to open.
  • No monthly service fee
  • Free Visa debit card
  • Direct deposit and mobile deposits
  • Optional Overdraft Privilege

Discover Bank: Best Money Market for Emergency Funds

Discover Bank's Money Market Account provides easy access to your funds via ATMs. This makes it easy to access cash should you experience an emergency.

  • 0.65% APY under $100,000; 0.70% APY $100,000 or more. $2,500 minimum deposit.
  • Free debit card and checks
  • Over 60,000 fee-free Allpoint® or MoneyPass® ATMs
  • No limits on ATM cash withdrawals
  • Remote deposits and online bill pay
  • No deposited item returned or insufficient funds fees

Discover Bank also has 24/7 customer service should you need help at any time of day.

Discover is also known for their excellent credit cards. Discover credit cards offer good rewards, and all have no annual fee and no foreign transaction fees.

UFB Direct: Best Money Market for $25,000+

UFB Direct's Premium Money Market Account has a very high rate, but only on accounts with $25,000 or more. And you need to maintain a $5,000 average daily balance in order to avoid monthly fees.

  • 0.40% APY for balances of $25,000 and above.
  • $5,000 to open
  • Complimentary Visa debit card
  • Check writing privileges
  • Mobile check deposits

Affinity Plus: Best Credit Union Money Market

Affinity Plus Federal Credit Union offers one of the highest APYs currently on their market for their Superior Money Market Account.

You have the opportunity to earn 2.02% APY on balances up to $25,000; 0.75% APY on balances over $25,000. No minimum opening deposit.

However, you must meet certain conditions to earn the high APY. You must have a direct deposit of at least $500 each month (to any Affinity Plus checking, savings or money market account), and enroll in digital statements.

There are no minimum balance requirements and no monthly fees.

You're also automatically enrolled in the MyPlus Rewards program. You earn 4 points a month per $1,000 in average daily savings balances. Points can be redeemed for cash back, gift cards, travel, and more.

Anyone can become a member of Affinity Plus Federal Credit Union with a one-time $25 donation to the Affinity Plus Foundation.

TIAA Bank: Best One-Year Intro Money Market Rate

TIAA Bank offers a very competitive first-year introductory rate for their Yield Pledge Money Market account. TIAA guarantees that your account yields will stay in the top 5% of similar accounts offered in the U.S. banking market.

  • 0.50% - 0.70% APY depending on balance. 1-year 0.75% intro APY on balances up to $250,000. No monthly service fee. Minimum deposit of $500.
  • Free debit card for ATM access
  • Unlimited ATM fee refunds for accounts with $5,000 balance

After the 1st year, the rate drops significantly depending on your balance. If you have $100,000 though, you will still maintain a high yield rate. A money market account could be a good choice if you have a large sum of money that you don't want to expose to market risk. Jumbo money market accounts may offer higher APYs in exchange for the larger balance.

NBKC Bank

NBKC (National Bank of Kansas City) allows anyone to open their accounts online. The rate on the Personal Money Market account is lower than other online banks, but it still offers a great product.

The current money market rate is 0.80% APY on balances up to $1 Million. $5 to open, no monthly service fees.

  • No monthly service fee
  • Optional debit Mastercard
  • Free access at 32,000+ MoneyPass® ATMs nationwide

Synchrony Bank: Best Money Market for IRAs

If you are weary of putting your retirement money in the hands of risky investments, you may want to invest some of your money in an IRA money market account. This can help you get a little peace of mind, knowing that not all of your money is at risk of being lost.

Look into Synchrony Bank's IRA money market accounts.

  • 0.50% APY. No monthly service fee and no minimum deposit.
  • Available in both Roth and Traditional IRA options
  • Can rollover existing IRA contributions
  • Make additional deposits at any time, subject to IRS contribution limits

The interest rate isn't the highest, but it serves as a secure place to park your retirement savings. You don't need to worry about the fluctuations of the stock market. And there are tax benefits.

Other Money Market Accounts to Consider

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Here are some other money market accounts to consider:

  • State Farm
    You probably think of State Farm when you need insurance, but they offer online banking as well.

    Their Money Market Account has competitive interest rates and no monthly fee with direct deposit. You need $1,000 to open. Account comes with a complimentary debit card for ATM withdrawals.

  • BankPurely
    If you keep a balance of at least $25,000, you can get a very high rate from Bank Purely's money market account. It comes with an ATM card and you get free ATM access on more than 55,000 ATMs.

    And plus, one tree will be planted for every BankPurely account opened.

  • Sallie Mae
    Sallie Mae is known for student loans, but they also have a great money market account with a very competitive APY. There is no minimum balance or monthly fee. The account allows for writing checks, though has no ATM access.

Money Market Accounts at Big Banks

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So far, we've only talked about online banks, because they give the best rates. What about traditional brick-and-mortar banks? Perhaps you don't like the idea of purely online banking. Or if you already have checking accounts under these banks, you may want savings under the same bank.

These traditional banks provide money market accounts, though note that the APY won't be as high.

  • Wells Fargo Money Market Account
    Also known as the Platinum Savings Account. 0.01% APY. Minimum opening deposit of $25. $12 monthly service fee, unless you maintain a minimum daily balance of $3,500. Bonus APY of 0.02% requires account linked to Portfolio by Wells Fargo relationship.

  • BBVA Money Market Account
    BBVA offers a decent APY on their money market account if your balance is at least $10,000. The minimum to open is $25. However, there is a $15 monthly fee, unless you maintain a minimum daily balance of $10,000, OR set up auto monthly transfers of $25 or more from a BBVA checking account.

  • PNC Bank Money Market Account
    0.02% APY. Minimum deposit is $100. Maximum deposit is $10,000. Monthly service charge of $12 unless you have $5,000 average monthly balance.

  • Citizens Bank Money Market Account
    Several types of Money Market accounts. 0.01% - 0.05% APY. No minimum opening deposit. Monthly maintenance fee of $10, unless you have a minimum daily balance of $2500. Other Money Market accounts have no monthly maintenance fee but require qualifying Citizens Bank Checking Account.

  • US Bank Money Market Account
    0.01% - 0.05% APY, depending on amount. Minimum opening deposit $100. Monthly maintenance fee $10 unless you have $10,000 minimum daily ledger balance.

What to Look for in a Money Market Account

Most banks offer a money market account. Knowing what to look for in an MMA can help you make the right choice for your situation.

  • Minimum Balance Requirements
    Each bank has their own opening deposit requirement. And some have minimum average daily balance requirements in order to avoid monthly fees. Make sure you can meet the required amount.

  • The Ability to Withdraw Money if Needed
    Some banks allow for ATM access, checks, or online transfers. Know what features you want and your withdrawal options. Note that money market accounts usually have a federal limit of 6 withdrawals per month.

  • The Interest Rate
    Of course, you want the highest interest rate possible. But every bank will have their own requirements to earn that rate. Find the bank that offers the highest rate with requirements that you can meet.

  • Other Products
    Some online banks only has savings products and don't have checking accounts. Consider this if you want to do all your finances under one bank.

  • FDIC Insurance
    You always want to choose a bank that is a member of FDIC. This ensures that your deposits are covered up to $250,000. All the banks on our list are FDIC insured.

Downsides of a Money Market Account

Money market accounts could have their downsides too:

  • You can only make six transfers and withdrawals per month, which makes your money a little less liquid than you might like.

  • Typically, a money market account requires a higher balance.

  • The interest rates may be higher than checking or savings rates, but they may be less than your rate of return on other investments, such as stocks or mutual funds.

  • The introductory interest rate may fluctuate. The rates may change often, which could mean a lower return than you anticipated.

Can you lose your money in a money market account?
No, you will not lose your deposits. Money market accounts are risk-free and you will always earn the current advertised interest rate. Your money is also safe from bank failure. If the bank goes out of business, your money is protected by FDIC insurance (up to $250,000).

Money Market vs. Savings Accounts

A money market account is a type of savings account, so you're limited to 6 withdrawals a month. However, you get a little more flexibility and easier access to your money.

A lot of money market accounts allow for checkwriting and online bill pay (which is not allowed in in traditional savings accounts). Some even come with a debit card you can use for purchases and withdrawing money at ATMs. This makes your funds more liquid. You'll have to check what features your MMA offers.

Money market accounts may offer higher interest rates than savings accounts. In exchange, some banks will have bigger account balance and/or minimum deposit requirements. Rates and requirements will vary by bank.

Bottom Line

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A money market account can be a great product to safely grow your money while having a bit more access flexibility. Usually, an online bank offers higher rates.

But make sure to read the fine print and understand a bank's requirements before opening an account. There are usually limitations on withdrawals, so it should not be used like a checking account.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

More from CreditDonkey:


Money Market vs Savings


What is a Money Market Account

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How to Invest in Stocks



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