Best Money Market Accounts and Rates
- November 8, 2018
- Posted by: Ashley Sutphin Watkins
- Category: Banking
At a Glance:
Money markets are similar to high-yield savings accounts. They offer a fair amount of flexibility and accessibility, with competitive interest rates. We selected the best money market accounts that have high APYs, low fees, and low minimum opening deposit requirements.
A money market account is a way to save and grow money without investing in the stock market or exposing yourself to risk. Money markets do earn interest, and often the interest rates are higher than with a traditional savings account. Money market rates are typically on-par with what’s offered on savings accounts through online-only banks.
Money market accounts do sometimes require higher minimum deposits and account balances than traditional savings accounts. The balances held in money market accounts at a bank are insured by the Federal Deposit Insurance Corp. (FDIC), and money market accounts held by credit unions are insured by the National Credit Union Administration (NCUA). With a money market account, you have some flexibility with how you can access funds.
What Should I Look for in a Money Market Account?
The number one consideration when people are choosing a money market account is typically the annual percentage yield (APY). This determines how much you’ll earn in interest. Most competitive money market accounts offer around a 2% interest rate right now.
Other considerations include whether the institution is reputable, and whether or not you can meet minimum balance requirements. Here, we compare some of the best money market accounts available right now.
Best Money Market Accounts
VirtualBank is an online bank that’s a division of Iberiabank, which was founded in 1887 and now has more than $30 billion in assets. VirtualBank says it strives to offer competitive interest rates and other features of an online bank such as convenient technology. A member of the FDIC, VirtualBank has robust online and mobile banking tools.
The eMoney Market Account is the firm’s money market product. New customers can easily open an account online.
Features of the eMoney Market account from VirtualBank include:
- The minimum opening deposit is only $100
- 2.01% APY guaranteed for a year
- No minimum deposit
- Free mobile deposits
- Free online and mobile banking
The eMoney Market account is a great straightforward money market product. The interest rate for the first year is very competitive. However, be aware that that rate does only last a year. The APY may be lower after the introductory year.
The low minimum opening deposit is a big perk of this account and is unique compared to many other money market options. There is a $5 monthly maintenance fee with this account, but it can be waived if certain conditions are met.
All America Bank
All America Bank is an Oklahoma-based financial institution with a history dating back to 1927. You can bank online or at branch locations in Oklahoma. All America is known for offering competitive interest rates on their accounts. Their Mega Money Market Checking Account is a hybrid of a money market and a traditional checking account.
It features a competitive APY, and since it is also a checking account, there is a lot of flexibility with access to money with this account. This account includes a Visa debit card, and account holders have access to thousands of ATMs around the world.
All America Bank Mega Money Market Checking Account features include:
- 2.25% APY
- No minimum balance requirement
- Promotional interest rate is available on deposits up to $50,000
- Six free withdrawals or transfers in-person or at ATMs
- Overdraft Privilege
This account offers an excellent APY to also be a checking account. While there is no minimum balance required, there is a minimum opening deposit requirement of $500. Accounts with over $50,000 only earn an APY of 0.50%.
Synchrony is a leading brand in online banking. Synchrony offers high-yield online savings accounts, CDs, and money market products with competitive rates and a loyalty perks program. The Synchrony Money Market Account offers a fairly competitive interest rate of 1.20% and the benefit of no minimum balance requirement.
The rates stay the same even as deposit amounts increase. Synchrony makes it fairly easy to transfer funds into one of their accounts by registering an external bank account, wiring the funds, or speaking with a Synchrony customer service representative.
Synchrony also offers a high-yield savings account with a rate of 1.90%. That account comes with an ATM card that allows you to easily access your cash.
Key features of the Synchrony Money Market Account include:
- 1.20% APY
- Online and mobile banking options
- Check-writing capabilities
- FDIC-insured deposits
- Easy-to-open online accounts
Aside from its perks program, Synchrony does not offer many bonuses. It’s a simple, straightforward and easy-to-manage online account with a relatively high interest rate – but not the highest of its competitors.
Barclays offers modern online banking accounts and tools with award-winning online savings accounts and online CDs. Barclays, one of the original financial institutions in the U.S., has a history that dates back more than 300 years. Now, it’s one of the leading financial services companies in the world.
Barclays Online Savings Account is a product to consider if you’re researching money market accounts. This savings account has competitive rates, and it’s simple and easy to use.
The following are key features of the Barclays Online Savings Account:
- 2.05% APY
- No monthly maintenance fees
- No minimum balance requirement
- Direct deposit options
- Online transfers can be made to and from other banks
People who want a money market or savings account without any opening balance or deposit requirement might like the flexibility of the Barclays Online Savings Account. For interest to post to the account, the minimum balance only needs to earn customers at least$0.01. The flexibility with transfers and direct deposits are other positive features about this account.
CIT Bank offers personal banking, home loans, and business banking services. CIT was founded in 1908, and now has more than $50 billion in assets as of June 2018. Retail branches of CIT Bank operate in Southern California under the name OneWest Bank. CIT Bank offers a money market account with a high interest rate and accessibility.
The CIT Bank money market includes:
- Up to 1.85% APY
- Minimum deposit of $100
- Transactions can be made using People Pay
- Daily compounding interest
- No account opening or monthly service fees
The CIT Bank money market account offers a competitive interest rate, and the ability to maximize earning potential through the daily compounding interest. The minimum deposit is low, and there are no fees that will chip away at interest earnings with this account, making it a good option.