A money market account (MMA) offers a unique blend of savings and accessibility. Unlike traditional savings accounts, MMAs often provide check-writing capabilities and debit card access for convenient withdrawals, making them a flexible option for managing your funds.
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The Federal Reserve indirectly influences MMA interest rates at competitive banks. While increases in Federal Deposit Insurance Corp. (FDIC) bank rates generally follow the Fed’s adjustments, a Fed rate hike doesn’t guarantee that all banks will raise their rates. Therefore, comparing rates across different institutions is crucial to finding an MMA that aligns with your financial goals.
Beyond interest yields, consider the features offered. Key features to look for include check-writing privileges, ATM access, mobile check deposit functionality, and a user-friendly mobile app. Given the similarities between MMAs and high-yield savings accounts, exploring both options is recommended when seeking the best way to grow your savings.
Boosting Your Returns with Jumbo Money Market Accounts
Some MMAs offer tiered interest rates, rewarding higher balances with increased annual percentage yields (APYs). These “jumbo” MMAs are particularly attractive for individuals looking to deposit substantial sums while maintaining liquidity. However, it’s essential to ensure your deposits adhere to FDIC guidelines for maximum protection in case of bank failure.
Recent Money Market Account APY Trends
The table below showcases the national average APY for MMAs over the past three months:
| Date | Money Market Account National Average APY |
|---|---|
| 12/2/2024 | 0.42% |
| 11/25/2024 | 0.42% |
| 11/18/2024 | 0.43% |
| 11/11/2024 | 0.41% |
| 11/4/2024 | 0.42% |
| 10/28/2024 | 0.42% |
| 10/21/2024 | 0.42% |
| 10/14/2024 | 0.43% |
| 10/7/2024 | 0.42% |
| 9/30/2024 | 0.43% |
| 9/23/2024 | 0.43% |
| 9/16/2024 | 0.45% |
| 9/9/2024 | 0.44% |
| 9/2/2024 | 0.47% |
| 8/26/2024 | 0.46% |
| 8/19/2024 | 0.46% |
| 8/12/2024 | 0.46% |
| 8/5/2024 | 0.46% |
| 7/29/2024 | 0.46% |
Methodology for Calculating National Average Interest Rates
Bankrate’s methodology for determining national average CD and MMA rates involves surveying over 500 banks and credit unions weekly. This comprehensive survey includes widely accessible institutions offering competitive yields, as well as some of the nation’s largest banks.
Current Money Market Account Rates – December 2024
Here are some competitive MMA rates as of December 5, 2024:
- Vio Bank — 4.77% APY
- Quontic Bank — 4.75% APY
- CFG Community Bank — 4.65% APY
- UFB Direct — 4.31% APY
- Sallie Mae Bank — 4.20% APY
Note: APYs are subject to change and may vary by region.
Maximizing Your MMA Returns
Earning above-average returns on your MMA is achievable. Many FDIC-insured online banks offer MMAs with low or no minimum deposit requirements and often waive monthly service fees. These features, coupled with competitive APYs, present opportunities to significantly outperform the national average. Remember to compare offerings from different banks to confirm deposit requirements, fee structures, and other relevant details before making a decision.
