Money market accounts haven’t gotten much attention in recent years, and it’s easy to see why. Recent figures from the Federal Deposit Insurance Corporation (FDIC) show that the average savings account rate and the average money market account rate are currently 0.06% APY.
Still, there are a small handful of banks that pay interest on money market accounts that rival certificates of deposit (CDs). And, unlike CDs, money market accounts don’t tie up your money for a year or more just so you can get the highest bank interest rates.
Below are the most lucrative money market offers currently available and share important account details before opening any money market. While Axos Bank currently offers the best return among the money market accounts we considered, you should check out Discover, CIT Bank, Nationwide, and BBVA to find the best product for you.
The most important factors for money market accounts
- Availability: While stationary banks have money market accounts, you can find competitive prices and conditions through online institutes. Online banks tend to offer higher interest rates than their competition.
- Minimum deposit requirements: Compare banks based on your minimum deposit to find the best money market rates for your savings. You may also get a higher interest rate on a larger deposit, but the thresholds for higher earnings vary widely.
- FDIC insurance: Ensure that any money market account you open is protected by the FDIC for amounts up to $ 250,000, which is standard. All money market accounts that have created our ranking offer FDIC insurance.
- Debit card access: If you want easy access to your money market funds, a debit card is helpful. Check that the money market account you are considering provides a hassle-free way to access your money when you need it.
The best money market accounts of 2021
The best money market accounts of 2021 are easy to open and use, while also offering a high return rate. The following banks created our ranking based on their money market rates and other considerations:
Money Market Account Reviews
While the money market accounts on this list have the best rates and terms, there are some differences between them. For example, factors such as minimum deposit requirements can vary, and money market accounts often have their own unique advantages.
The following reviews of money market accounts can help you decide between today’s top options.
Discover offers some popular banking products outside of its popular cashback credit cards. In addition to home equity and personal loans, money market accounts with no minimum balance or other hidden fees are offered.
The great features of Discover Money Market Accounts include nationwide access to 60,000 ATMS, a free debit card and access to the Discover mobile app. Discover also gives you the option to open your money market account online, but you can also get started over the phone.
Current money market account rates: At the time of writing, the institute is offering 0.30% APY for balances under $ 100,000 and 0.35% APY for balances of $ 100,000 or more.
What is holding it back: A major disadvantage of Discover Money Market Accounts is that they require an initial deposit of $ 2,500 to get started.
BBVA money market accounts don’t have the best prices, but the minimum deposit requirement of $ 25 to open an account makes up for it. This makes BBVA a much better choice if you want to earn interest but have limited savings right now.
BBVA Money Market Accounts also offer up to six free withdrawals per month. With the BBVA Mobile Banking App you can easily manage and monitor your account.
Current money market account rates: Money market rates range from 0.010% to 0.150% for balances of $ 25 million to $ 5 million. Prices are current at the time of writing and vary by region.
What is holding it back: A major disadvantage of BBVA is the low interest rates compared to other financial institutions. However, the money market rates for balances over USD 10,000 are still higher than the national average for all money market accounts combined.
CIT Bank is a popular online bank known for its checking and savings accounts. However, it also offers a rewarding money market account with high interest rates.
CIT Bank money market accounts have no hidden fees or monthly maintenance fees. You can also open your account with as little as $ 100 so the entry barrier to getting started is relatively low. The best part is that regardless of how much you keep in your account, you will earn the same money market rate.
Current money market account rates: At the time of writing, CIT Bank’s money market rate is 0.45% APY.
What is holding it back: Like many other money market accounts, CIT Bank limits you to six withdrawals or automatic transfers per billing cycle. Since CIT Bank is an online bank, you will also need to open and manage your account online.
Axos Bank is another online institution with an attractive money market account. With this bank you can open a money market account with no fees. You will also earn the same return regardless of how much money you have in your money market account.
You get access to a free debit card when you open your account. It also offers a referral bonus of $ 20 for every friend you refer to Axos who opens an account and meets the minimum requirements.
Current money market account rates: At the time of writing, Axos Bank is offering 0.60% APY on all balances.
What is holding it back: While Axos doesn’t require you to have any specific amount of money in your account, it does require an initial deposit of $ 1,000 to get started.
Nationwide offers a generous money market account rate. Interestingly, the money market product is managed by Axos Bank. Nationwide’s Money Market Plus Account enables you to earn a generous return on your money market deposits. However, you can also refund domestic ATM fees of up to $ 10 per month.
Another benefit of Nationwide is that it offers the same high money market rate regardless of the size of your bankroll. You also get access to digital banking tools like online bill payment and mobile check deposit.
Current money market account rates: The current rate for Nationwide’s Money Market Plus product is 0.50% APY at the time of writing.
What is holding it back: Nationwide, a minimum deposit of USD 1,000 is required to open a money market account. You’ll also need to have at least $ 1,000 on your account to avoid a $ 8 monthly maintenance fee.
How we found the best money market accounts
While interest rates are easily the most important factor when comparing money market accounts, we’ve dug a little deeper to ensure that all of the banks in our ranking are reputable and fair. Here are the top factors we considered when looking for the best money market accounts for 2021:
- Minimum balance requirements. The best money market accounts have reasonable minimum requirements for opening an account and reasonable minimum daily balance requirements (or no requirements) thereafter.
- Easy setup and accessibility. We searched for accounts to get you started, as well as accounts that don’t penalize you when you need to access your funds.
- FDIC insurance. We only added money market accounts with FDIC insurance.
- Fees. Money market accounts with no opening fees or monthly maintenance fees were preferred. In the event that a maintenance fee is charged, we only include banks that allow monthly fees to be waived.
- Physical access to funds. Finally, we got better marks on money market accounts that offer a free debit card and access through a large network of ATMs. This access becomes essential when you need to get your hands on your money market funds in a hurry (ie, in an emergency).
What you should know about money market accounts
Before opening a money market account, you should understand how these accounts work and how they stack up on online savings accounts. Here are some of the most important factors to consider.
- Money market accounts are actually mutual funds. According to the US Securities and Exchange Commission, money market accounts are a type of mutual fund that was originally developed in the 1970s. These accounts should allow investors to invest in securities that offer a better interest rate than traditional savings accounts.
- Money market accounts with a credit union are not FDIC insured. When you open a money market account with a credit union, your funds are insured with the National Credit Union Administration (NCUA).
- Money market returns are guaranteed. Although money market rates are no longer as high as they used to be, these accounts offer a guaranteed risk-free return.
- You won’t get rich with a money market account. If you hold $ 10,000 in a money market account for 10 years and earn 0.60% APY, you will end the decade with a total of $ 10,669. If you want to earn passive income, there are many other strategies that can help you get better returns.
Summary: Best Money Market Accounts of 2021
|Prize Category||Current money market rates||Minimum balance for opening an account|
|Discover||Wide access to ATMs||0.30% APY on balances under $ 100,000 and 0.35% APY on balances under $ 100,000 or more||$ 2,500|
|BBVA||Low opening credit requirement||0.010% to 0.150% for balances of $ 25 million to $ 5 million||$ 25|
|CIT bank||No fees||0.45% APY||$ 100|
|Axos Bank||Highest APY||0.60% APY on all balances||$ 1,000|
|Nationwide||ATM fee refund||0.50% APY||$ 1,000|