Banks are competing for your business which means you have options for the best money market account rates for 2024.
We like money market accounts because they offer easy access to your money, without paying penalties for early withdrawal.
Most money market accounts feature checks and a debit card. That means you can make transactions straight from your money market account, where savings accounts typically require you to transfer funds to yourself first.
Best Money Market Rates for 2024
Quontic Bank's 5.00% APY easily beats other money market accounts and is well above the 0.68% APY national average savings rate. Plus, customers have access to 90,000 fee-free ATMs across the country.
CIT Bank operates primarily online but is available to residents in all states. With fewer overhead costs associated with banks that have branch locations, they can return those savings to customers. It only requires $100 to open.
Money Market Accounts Are Safer Than Investments
Money Market accounts are relatively safe places to keep money when the stock market is volatile. The combination of FDIC insurance provided by banks or NCUA insurance provided by credit unions makes money market accounts a low-risk investment.
There is a tradeoff of course. Interest rates for money market accounts while higher than those found with regular checking accounts and some savings accounts, money market accounts cannot provide you with the likely 8% to 10% historical average return you would receive by investing in securities.
» See how much interest you can earn with our savings apy calculator.
Benefits of a Money Market Account
There are several benefits to opening a money market account:
- Higher interest rates. Money market accounts typically offer higher interest rates than traditional savings accounts, making them an attractive option for people who want to earn more on their savings.
- Easy access to funds. Money market accounts offer easy access to funds, allowing account holders to withdraw their money quickly and easily if needed.
- FDIC insurance. Money market accounts are insured by the Federal Deposit Insurance Corporation (FDIC), which means that account holders are protected up to $250,000 per depositor, per insured bank.
- Low risk. Money market accounts are considered low-risk investments because they are typically invested in short-term, high-quality debt securities, such as government bonds, municipal bonds, and corporate bonds.
- Flexibility. Money market accounts often offer a great deal of flexibility in terms of deposit amounts and withdrawal options, making them a convenient choice for people who want to manage their money effectively.
