A money market account is a type of savings account that offers higher interest rates than traditional savings accounts—often with added perks like debit cards, ATM access, or limited check writing.
Money market accounts are more appealing than ever thanks to rising APYs and increased demand for safe, flexible places to store cash. They strike a balance between earning decent returns and keeping your money easily accessible.
7 Best High-Yield Money Market Accounts
We’ve reviewed the top options available this year, considering factors like interest rates, fees, minimum balance requirements, and account features. Whether you’re building your emergency fund or parking a larger balance, here are seven of the best money market accounts to consider this year.
1. Quontic Money Market Account
Money market rate: Quontic offers a 4.25% APY on all balance tiers, with no introductory period. Interest is compounded daily and credited monthly, helping your savings grow faster.
Minimum balance and fee: You only need $100 to open the account, and there are no monthly maintenance or overdraft fees.
Quontic’s money market account includes check-writing privileges and a free debit card. You’ll also have access to more than 90,000 fee-free ATMs across the country.
Their mobile app makes it easy to deposit checks, pay bills, and send money with Zelle.
2. Vio Bank Cornerstone Money Market Savings Account
Money market rate: Vio Bank offers a strong 4.36% APY on all balances. Interest is compounded daily and credited monthly to help maximize your earnings.
Minimum balance and fee: You can open an account with just $100. There are no monthly maintenance fees if you choose electronic statements, but paper statements come with a $5 monthly charge.
This account does not include check-writing privileges or a debit card. Instead, you’ll manage your money through online and mobile banking, with options like ACH transfers and mobile check deposits.
Vio Bank is the online division of MidFirst Bank and offers phone support seven days a week.
3. Sallie Mae Money Market Account
Money market rate: Sallie Mae offers a 3.85% APY on all balances, with interest compounded daily and paid monthly.
Minimum balance and fee: There’s no minimum balance requirement and no monthly maintenance fees, making it easy to get started.
This account includes check-writing privileges but does not come with a debit card or ATM access. You can manage your money through Sallie Mae’s online platform and mobile app, which supports mobile check deposits and electronic transfers.
Customer support is available by phone on weekdays during business hours
4. EverBank Performance℠ Money Market Account
Money market rate: Earn 4.00% APY on balances of $10,000 or more. Lower balances still earn a respectable 2.02% APY. Interest is compounded daily and paid monthly.
Minimum balance and fee: There’s no minimum deposit to open the account and no monthly maintenance fees.
This account includes check-writing privileges and a debit card is available upon request. You can manage your money through EverBank’s online and mobile platforms, which support mobile check deposits, online bill pay, and Zelle transfers.
EverBank doesn’t charge ATM fees and will reimburse up to $15 per month for fees from other ATM providers. If you keep an average daily balance of $5,000 or more, those reimbursements become unlimited.
5. CIT Bank Money Market Account
Money market rate: CIT Bank offers a 1.55% APY on all balances. Interest is compounded daily and paid monthly to help your money grow consistently.
Minimum balance and fee: You only need $100 to open the account, and there are no monthly maintenance fees.
This account doesn’t offer check-writing privileges or a debit card, but you can manage your money easily through CIT Bank’s online and mobile platforms. Features include mobile check deposit, online bill pay, and Zelle transfers.
There are a few potential fees to keep in mind: a $10 fee for each transaction over the six-per-month limit (up to $50 monthly), a $25 overdraft fee, and a $10 outgoing wire transfer fee if your balance is below $25,000.
6. Ally Bank Money Market Account
Money market rate: Ally offers a 3.60% APY on all balances. Interest is compounded daily and paid monthly.
Minimum balance and fee: There’s no minimum balance requirement and no monthly maintenance fees, so it’s easy to open and maintain.
This account comes with both a debit card and check-writing privileges, giving you flexible access to your money. You can make unlimited ATM withdrawals and up to 10 total withdrawals per statement cycle. Ally also reimburses up to $10 per cycle for fees charged at out-of-network ATMs.
You’ll manage your account through Ally’s highly rated mobile app, which supports mobile check deposits, Zelle transfers, and online bill pay. Customer support is available 24/7 via phone, chat, or email.
7. Discover Bank Money Market Account
Money market rate: Discover offers a 3.50% APY on balances under $100,000, and 3.55% APY on balances of $100,000 or more. Interest is compounded daily and credited monthly.
Minimum balance and fee: There’s no minimum deposit to open the account and no monthly maintenance fees.
This account includes check-writing privileges and a debit card, providing flexible access to your funds. You can manage your money through Discover’s online and mobile platforms, which support mobile check deposits, online bill pay, and Zelle transfers.
Discover also offers 24/7 customer support via phone, chat, or email.
How a Money Market Account Works
A money market account is a savvy way to save, especially if you’ve already accumulated a fair amount of funds to put away.
You also get to retain the convenience and flexibility of a regular savings account by making withdrawals as you need them without the wait time of other savings accounts. You might even be able to write a few checks from your account, depending on the bank.
This makes your funds much more accessible compared to an account like a CD with a predetermined term. There are never any penalties, so you can get your money when you need it while still earning above-average yields.
Pros & Cons of Money Market Accounts
Money market accounts come with pros and cons. Knowing both can help you decide if they’re a good fit for your savings strategy.
Pros
- Higher interest rates: Money market accounts often offer higher interest rates compared to traditional savings accounts, especially at online banks and credit unions. This means your money can grow faster.
- Accessibility: Unlike certificates of deposit (CDs), money market accounts typically offer check writing privileges and a debit card, giving you more flexibility and easier access to your funds.
- Insurance protection: Money market accounts at banks and credit unions are insured by the FDIC and NCUA, respectively. This means your deposits are protected up to the maximum allowed by law.
- Combines checking and savings: A money market account can offer the best of both worlds: the higher interest rates of a savings account and the check writing and debit card access of a checking account.
Cons
- Minimum deposit and balance requirements: Money market accounts typically require a higher minimum deposit to open and minimum balance to maintain compared to traditional savings accounts. Not meeting these requirements can lead to fees or lower interest rates.
- Withdrawal and transfer limits: Under federal law, money market accounts are limited to six convenient transfers or withdrawals per statement cycle. Exceeding this limit could result in fees or account closure.
- Variable rates: Money market account rates are not fixed and can fluctuate over time. If rates go down, so will your earnings.
- Fees: Some money market accounts charge monthly maintenance fees, which can erode your earnings if not waived. Be sure to understand any potential fees before opening an account.
How to Choose the Right Money Market Account
Not all money market accounts are created equal. If you want to get the most out of your savings, here’s what to look for before opening an account:
1. APY (Annual Percentage Yield)
APY is the number that tells you how much interest you’ll earn each year, factoring in compound interest. The higher the APY, the faster your money grows.
Online banks usually offer the best rates—sometimes double what traditional banks pay. Even a small difference in APY can add up over time.
2. Fees You Can Avoid
Monthly maintenance fees can eat into your interest earnings. Look for accounts with no monthly fees—or at least ones that are easy to waive by keeping a minimum balance or setting up direct deposit.
Also check for other fees like excessive withdrawal penalties or paper statement charges.
3. Easy Access to Your Money
Some money market accounts come with a debit card and check-writing privileges, while others only allow transfers between linked accounts. If you want quick access to your cash, make sure the account offers the features you need.
4. Minimum Balance Requirements
Many money market accounts require you to keep a certain balance to avoid fees or earn the full APY. Make sure you’re comfortable maintaining that amount so you don’t get hit with penalties.
5. FDIC or NCUA Insurance
Make sure your money is protected. Most banks and credit unions insure deposits up to $250,000 per person, per institution. Just double-check that the account is with an FDIC- or NCUA-insured financial institution.
How to Open a Money Market Account
Opening a money market account is quick and easy—most banks let you do it in under 10 minutes online. Here’s how to get started:
- Gather your info: Have your name, address, date of birth, Social Security number, and a government-issued ID ready. Non-U.S. citizens may need additional documentation.
- Choose your bank or credit union: Compare APYs, fees, balance requirements, and access features to find the best fit for your savings goals.
- Apply online or in person: Most accounts can be opened directly through the bank’s website. Some may require a visit to a local branch.
- Fund your account: Transfer money from an existing bank account, deposit a check using your phone, or send a wire transfer. Some banks also accept mailed checks.
- Set up your features: Turn on tools like mobile banking, direct deposit, and online bill pay so you can manage your account easily.
- Review and confirm: Double-check everything and hit submit. Most banks will confirm your account is open within minutes.
Money Market Account Alternatives
There are various alternatives to money market accounts that you can consider, depending on your financial needs and goals. Below are some of the key alternatives:
1. Savings Accounts
A regular savings account is the simplest form of savings for many people. They are often used for short-term savings, emergency funds, and to keep money safe. They typically offer lower interest rates than money market accounts but come with less risk and easier access to your funds.
2. Checking Accounts
For those who desire ease of access to their funds for daily transactions, checking accounts serve as a viable alternative. They typically do not offer interest, but they provide the convenience of frequent withdrawals through check, ATM, or digital transactions.
3. Certificates of Deposit (CDs)
If you are looking for higher returns and don’t mind locking away your funds for a fixed period, certificates of deposit can be a suitable alternative. They often offer higher interest rates than both savings and money market accounts. The trade-off is limited access to your money without incurring a penalty.
4. Investment Accounts
Investment accounts, such as stocks, bonds, mutual funds, and other securities, are higher-risk alternatives to money market accounts that can potentially provide higher returns. However, they are subject to market volatility, and hence, not suitable for everyone.
Final Thoughts
Money market accounts strike a solid balance between earning interest and keeping your cash accessible. With higher APYs than most traditional savings accounts—and added perks like check writing or debit access—they’re a smart choice for savers who want flexibility without giving up returns.
Just make sure to compare rates, fees, and account features before opening one. The right money market account should work with your financial habits, not against them.
Frequently Asked Questions
Are money market accounts safe?
Yes, money market accounts are generally safe as they are insured by the Federal Deposit Insurance Corporation (FDIC) in banks or the National Credit Union Administration (NCUA) in credit unions. This insurance means your deposits are protected up to the maximum allowed by law, even if the financial institution fails.
Can I lose money in a money market account?
Money market accounts are considered a safe investment, as they are not subject to the volatility of the stock market. Unlike money market mutual funds, which can lose value, the principal in your money market account is protected. The only loss might come in the form of fees if you don’t meet certain conditions, such as maintaining a minimum balance.
How many withdrawals can I make from my money market account?
By federal law, money market accounts are limited to six “convenient” transfers or withdrawals per statement cycle. This includes preauthorized, automatic transfers (including overdraft protection transfers and transfers to service loans at the same institution), and transfers and withdrawals initiated by telephone, fax, or computer, among others. However, ATM withdrawals and withdrawals made in person at a bank are not subject to this limit.
Is the interest rate on a money market account fixed?
Interest rates on money market accounts are variable and can change based on the national Federal Funds Rate. This means the APY on your account could increase or decrease over time.
How often is interest paid on a money market account?
The interest on a money market account is typically compounded daily and paid monthly. However, the compounding frequency and payment frequency can vary between different financial institutions, so it’s important to check the specifics with your bank or credit union.
