Best Money Market Accounts of 2024


A money market account is a type of savings account that typically requires a higher minimum deposit and daily balance, yet it offers higher interest rates than most standard savings accounts.

Ready to get started saving? Check out our top picks for this year’s top money market accounts.

Top 6 Money Market Accounts


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Quontic is a digital bank that stands out for its attractive money market account rates and customer-friendly features. It offers online money market and savings accounts for consumers, similar to other online banks like UFB Direct.

Being an online bank, Quontic is able to offer impressive rates that often surpass those offered by traditional, physical banks. Its money market account, for example, offers a compelling 5.00% APY. All you need to open an account is $100, and you can do it online in just three minutes.

Quontic not only pays interest, but pays it daily, allowing your savings to grow even faster. Transferring money between accounts is straightforward, and you can manage your money with ease using Quontic’s user-friendly platform.

Moreover, Quontic believes in putting its customers first. Their U.S.-based customer service team is readily available through phone or email, ensuring a smooth banking experience for you.

In terms of fees, Quontic prides itself on having no monthly or overdraft fees. This means you won’t be charged for maintaining your account or if your account accidentally goes into negative.

Finally, your money with Quontic is safe and secured. It’s FDIC insured to the maximum legal limits, and they also employ advanced security monitoring for added peace of mind.

UFB Direct

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UFB Direct is a division of Axos Bank, and it offers an online money market and savings accounts for consumers.

Like many online banks, UFB is able to offer much higher rates than what traditional brick-and-mortar banks can offer.

For instance, the UFB Preferred Money Market Account boasts an APY of 5.25%. Customers have limited check-writing privileges, and the account comes with a complimentary debit card.

It’s free for customers to transfer money between accounts. And UFB Direct’s mobile app makes it easy to manage your money and deposit checks.

There are no monthly maintenance fees with a balance of $5,000; otherwise the fee is $10.00 per month.

Sallie Mae

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Did you know Sallie Mae doesn’t just service student loans? It has a whole area of banking features. One of these is a money market account with a 4.75% APY.

There’s no minimum deposit required so you can either start saving from scratch or transfer over existing funds when you open your account.

Additionally, you get to write checks directly from your account. Add to that no monthly fees and you have a strong contender for your savings goals.

To make a deposit, simply choose one of four convenient options: depositing a check electronically through your mobile phone, setting up a direct deposit, transferring funds electronically, or mailing in a check.

You can easily transfer funds from your money market account to your linked bank account and the process only takes 2-3 business days to post to your other bank.

If you overdraw your account due to insufficient funds, Sallie Mae charges a $19 fee, or whatever funds are remaining in your account so that your balance doesn’t go below zero.

This is quite a generous policy compared to many other financial institutions. For quick transfers and relatively low overdraft penalties, Sallie Mae is worth considering for your money market needs.

CIT Bank

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If you don’t have a large nest egg but still want to take advantage of high money market rates, consider CIT Bank.

The minimum opening balance is just $100 and the APY is 1.55%. With no opening fee or monthly service fee, you’ll only pay fees for wire transfers, overdrafts, excessive transactions, and stop payments.

Interest compounds daily so you can maximize your already-high yield. When you’re ready to make a transaction, simply use People Pay online or through the mobile app.

Like other money market accounts, you’re allowed to make six withdrawals or transfers from your CIT Bank account for each statement cycle.

With minimal fees and an extremely competitive yield, CIT Bank’s money market accounts are ideal for savers of all kinds, especially those starting off with smaller amounts of funds.


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Ally offers a low entry money market account that gives you quick and easy access to your money. Unlike the bank’s traditional savings account, you can access your money with both a debit card and personal checks.

If you maintain a minimum daily balance of $25,000 or more, you can qualify for a higher savings rate of 4.40% APY. This option is tailored to those just getting started saving and who need easy access to the funds in their money market accounts.

Ally doesn’t charge any monthly maintenance fees and has some nice ATM benefits. Any Allpoint ATM in the country is available for use free of charge, and even if you use another ATM, Ally will reimburse your fees up to $10 each cycle.

Some common fees include a $25 charge if you overdraw from your account (but that is limited to one per day) and a $10 excessive transaction fee if you take out funds over the federal monthly maximum of six times.

Discover Bank

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Discover Bank is mostly known for offering credit cards, but it also provides a host of online banking products, including a money market account.

One of the best things about opening a money market account through Discover is that there are no account fees.

If you have more than $100,000 to save, then you can earn a 4.25% APY. For balances that are under $100,000, you can still receive a 4.20% APY. And with Discover, you’ll have access to over 60,000 ATMs across the country.

Discover also offers a mobile app that makes it easy to track your funds even when you’re on the go. The app lets you deposit checks, temporarily freeze your debit card if it’s lost or stolen, and keep track of your account balance.

What is a money market account?

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.

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Pros and Cons of Money Market Accounts

Like any financial product, money market accounts have both advantages and disadvantages. Understanding these can help you decide whether a money market account is right for your financial situation and goals.

Pros of Money Market Accounts

  • 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 of Money Market Accounts

  • Minimum deposit and balance requirements: Many money market accounts 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.

What to Look for in a Money Market Account

Selecting the right money market account can be pivotal in optimizing your savings strategy. This section will help you identify and understand the key factors that differentiate various money market accounts, empowering you to make an informed decision tailored to your financial needs and goals.

Understanding the APY (Annual Percentage Yield)

One of the primary considerations when choosing a money market account is the annual percentage yield (APY). The APY is a percentage that tells you how much you’ll earn or owe in a year, taking into account the effects of compound interest.

The APY can vary significantly between different banks and credit unions. It’s a key differentiator, as money market accounts with higher APYs will yield more earnings over time. This factor gives them an edge over traditional savings accounts, which typically offer lower interest rates.

Fees and How to Avoid Them

Another significant consideration when selecting a money market account is the presence of fees. Many money market accounts tend to have monthly maintenance fees, which can chip away at your earnings over time.

When comparing accounts, it’s crucial to look for those with no or low monthly service fees. Some financial institutions may also offer ways to waive these fees, such as maintaining a minimum balance or setting up a direct deposit.

Accessibility to Your Money

One of the advantages of a money market account over a traditional savings account is increased access to your funds. Many money market accounts offer check writing privileges and a debit card, which can provide more flexibility in accessing your money.

When choosing a money market account, consider your liquidity needs and whether the account offers the necessary accessibility features.

Minimum Balance Requirements

Some money market accounts have minimum balance requirements. This is the lowest amount you can keep in your account without incurring fees or penalties. Falling below this minimum could result in a monthly fee. Understanding these balance requirements can help you avoid unnecessary charges and manage your money more effectively.


Before you entrust your money to a financial institution, it’s essential to ensure that your funds will be protected. Banks and credit unions in the U.S. offer insurance through the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA), respectively.

This insurance ensures that even if the financial institution fails, your deposits will be protected up to the maximum allowed by law—$250,000 per depositor, per insured bank, for each account ownership category.

How to Open a Money Market Account

Taking the leap to open a money market account is an important step in strengthening your financial future. Once you’ve identified the best money market account that suits your needs, the process to open your account is typically straightforward, though it may vary slightly among different banks and credit unions.

Here’s a step-by-step guide to assist you in this process:

Step 1: Gather the Necessary Information

When opening any kind of deposit account, including a money market account, you’ll need to provide certain personal information. Typically, this includes:

  • Your full legal name
  • Date of birth
  • Social Security number
  • Contact information such as your phone number, email address, and residential address

If you’re not a U.S. citizen, financial institutions will likely ask for additional documentation, such as your passport or another form of government-issued identification.

Step 2: Choose Your Bank or Credit Union

If you’ve already chosen your bank or credit union based on the criteria we discussed earlier (APY, fees, minimum balance, etc.), you’re already one step ahead. If not, take the time to compare money market accounts at different financial institutions.

Step 3: Visit the Financial Institution’s Website or Local Branch

Most banks and credit unions enable you to open a money market account online, though some require branch visits. If you’re opening an account online, visit the bank or credit union’s website and look for their account opening section.

Step 4: Complete the Application Process

During the application process, you’ll need to provide the personal information you gathered in Step 1. For online applications, simply input this information into the appropriate fields. If you’re applying at a branch, an account representative will guide you through the process.

Step 5: Make Your Initial Deposit

Once you’ve filled out the application, you’ll likely need to make an initial deposit. The minimum deposit to open an account varies by financial institution, so ensure you’re aware of this amount before proceeding. You can typically fund your account with a direct deposit, transfer funds from another account, or mail a check.

Step 6: Set Up Account Features

Finally, you’ll need to set up any additional features your money market account offers. This may include online banking, mobile check deposits, online bill pay, or setting up direct deposit with your employer.

Step 7: Review and Finalize Your Account

Once everything is filled out, take a moment to review all your information and ensure everything is accurate. After you’ve checked everything, submit your application.

Following these steps will put you on the right path to opening your money market account. Remember, the key to a successful personal finance journey is to make informed decisions, so always ensure you understand the terms and conditions of any account before opening it.

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.

Bottom Line

Money market accounts certainly have more restrictions than your typical savings account, but because they generally come with better interest rates, it can be a great way to save money.

As with any account, it’s essential to make sure you find the best money market account for your needs that banks and credit unions have to offer.

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.

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