The federal reserve recently started to reduce the rate of federal funds. Consequently, deposit rates – including monetary market account rates – have started to drop. It is more important than ever to compare MMA rates and make sure you win as much as possible on your balance.
The national rate of the average monetary market account amounts to 0.64%, according to the FDIC. It may not seem much, but consider that three years ago, it was only 0.07%. Thus, according to historical standards, monetary market account rates are still quite high.
Despite this, some of the best accounts currently offer more than 4% APY. Since these rates may not be there much longer, plan to open a monetary market account now to take advantage of the high rates of today.
Here is an overview of some of the best MMA rates available today:
See our choices for the 10 best monetary market accounts available today >>
In addition, the table below has some of the best savings and monetary market account rates available today from our verified partners.
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The amount of interest that you can earn from a monetary market account depends on the annual percentage rate (APY). This is a measurement of your total profit after a year when you consider the basic interest rate and the frequency of interest (the interests of the monetary account of the market are generally daily combinations).
Suppose you put $ 10,000 in an MMA at the average interest rate of 0.64% with a daily composition. After one year, your balance would drop to $ 10,064.20 – your initial deposit of $ 10,000, plus $ 64.20 in interest.
Now let’s say that you choose a high -performance monetary market account that offers 4% APY instead. In this case, your balance would drop to $ 10,408.08 over the same period, which includes $ 408.08 in interest.
Compared to a traditional savings account, a monetary market account can be accompanied by more restrictions. For example, monetary market accounts often require a higher minimum balance in order to gain the best interest rate and / or avoid costs. Some MMAS can also limit the number of withdrawals you can make per month (usually six).
In general, no bank offers an interest rate of 7% on the accounts of the monetary market or any other type of deposit account. That said, you may be able to find local banks and cooperatives carrying out limited-term promotional rates on certain accounts, which could reach 7%. However, promotional rates at this level often apply to a limited balance.
Find out more: Are 7% interest savings accounts more?
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