The 6 Best Money Market Accounts

The best Money market accounts (MMAs) for stashing your savings will offer high rates and low monthly fees, along with a few other considerations. Below are some of our top picks for money market accounts available today. 

Best money market accounts:

1. Discover Bank Money Market Account
2. Ally Bank Money Market Account
3. CIT Bank Money Market Account
4. TIAA Bank Yield Pledge Money Market
5. Sallie Mae Money Market Account 
6. Vio Bank Cornerstone Money Market Account

What is a money market account?

A money market account, also known as an MMA, is a savings account that can grow interest on balances and deposits. Unlike a CD (certificate of deposit) account, MMAs will offer a debit card and deposit account with regulations on withdrawals.

This type of account is offered by most banks and credit unions, including online, and is primarily used to hold your savings either short-term or long-term. The most common uses of MMAs are to save emergency funds, down payments for a property, large purchases, and weddings.

Money market accounts have comparable rates to high-yield savings accounts and CDs. They have more access to account funds with a debit card, which means you can take money from various locations like other financial institutions and ATMs.

Unlike regular savings and checking accounts, money market accounts pay higher interest rates on deposits but may require more extensive initial deposits, have more fees, and limit the monthly withdrawals you can make.

How does a money market account work?

A money market account is used primarily as a type of savings account.

When you open an MMA, your initial deposit is usually a minimum balance requirement, but not always. Minimum amounts can range from $0 to $10,000, depending on the bank. After the initial deposit, you should be able to make unlimited deposits. Most banks and credit unions allow funds to come from multiple sources, such as cash deposits and bank transfers from various accounts.

Due to the federal reserve regulations, most banks cap the number of withdrawals and outgoing transfers to six per month. These restrictions were lifted during the pandemic, but most banks have reimplemented this rule. If you exceed the capped amount of withdrawals, there will be a penalty fee.

Almost all money market deposit accounts are FDIC insured, meaning the government will reimburse your lost amount up to $250,000.

Regarding rates, MMAs, high-yield savings accounts, and CDs all fall close. For the most part, high-yield savings accounts may yield the most returns but offer less withdrawal flexibility. CDs also offer higher rates but work on a term period in which you cannot withdraw until maturity. MMAs offer the most flexibility and accessibility to funds with a slightly less annual percentage yield.

What should I consider when choosing a money market account?

When choosing which money market account is best, you should consider:

• Annual Percentage Yield (APY): Look for the highest APY rate because that will give you the highest return on your deposits.
• Minimum requirements: Minimum balance and deposit requirements depend on which bank you choose. 
• Fees: Most MMAs come with monthly maintenance fees. You need to research which bank or credit union has the least amount of fees. Some banks will waive their monthly payments if you maintain a certain balance. 
• Transactions: Many banks and credit unions will limit the number of monthly withdrawals and transfers you can make. 

The bottom line

Money market accounts can be a great savings instrument that most banks and credit unions provide. There are various reasons one would choose to open up a money market account, whether for an emergency fund, special event, Christmas gifts, large purchases, and more.

When deciding which money market account is best for them, they need to consider APY, minimum account balances, and account fees. The most important thing is access to your funds and the interest you will earn on your deposits.

Choosing the right financial tools for you and your goals doesn’t have to be daunting; we are here to help you every step.