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A money market account is a type of savings account that earns you interest. But unlike a , money market accounts typically offer , including access to your cash through debit card withdrawals and physical checks. Because money market accounts offer competitive interest rates, they can be a good way to save up, especially if you think you might need to pull from the account on occasion.
You can typically earn more interest with a money market account than with a traditional savings account, but money market accounts often require higher initial deposits or minimum balances. If neither of these requirements are an issue, a money market account can offer a safe way to grow your savings, while still offering access to your cash. They’re also particularly attractive now that annual percentage yields, or APYs, are starting to rise as a result of the .
As a general rule of thumb, anything over a 1% APY for a money market account is considered a good rate. Here are the best money market accounts available today — but first, some important notes about insurance and withdrawal limits for money market accounts.
FDIC insurance and withdrawal limits for money market accounts
All the banks included on this list are backed by the Federal Deposit Insurance Corporation, which insures deposits up to $250,000 per person, per bank. That means if your bank closes because it’s unable to meet its financial obligations, FDIC insurance will reimburse your deposits up to that amount.
Some of these money market accounts have withdrawal limits. In years past, most savings accounts were limited to six withdrawals per statement cycle, but that «excessive transaction» rule (called Regulation D) was eliminated in 2020, at least temporarily. While some banks have eliminated or paused their withdrawal limits, others continue to charge fees for exceeding withdrawal caps.
Note: The APYs provided were collected from the issuing organizations’ websites and are valid as of Aug. 31, 2022.
Best money market accounts
Vio Bank
A division of MidFirst Bank, Vio Bank is an online-only, privately owned bank based in Oklahoma City — and it offers the highest APY on this list. With just $100, you can open an MMA at 2.15% APY, with interest compounding daily.
You won’t pay a monthly fee with Vio, unless you opt in for paper statements ($5 per month). The only other fee to worry about is a $10 excessive transaction fee per withdrawal if you go over your six withdrawal limit per statement period. Because Vio only offers savings products (including CDs and a savings account), if you’re looking to bring your checking, credit and savings accounts under one roof, Vio may not be the bank for you.
Sallie Mae
Sallie Mae is an FDIC-insured bank headquartered in Salt Lake City, primarily known for creating, servicing and collecting private student loans. However, Sallie Mae also offers a variety of savings accounts with higher than average APYs. With no monthly fees or a minimum deposit required to open the account, Sallie Mae offers a highly accessible money market account.
Sallie Mae’s money market account includes check-writing features and has no withdrawal limits. It also has a relatively high 1.85% APY, which compounds daily and is paid monthly. Keep in mind that Sallie Mae will close your account if it’s dormant, which is defined as having $100 or less and no activity for the past 12 months.
First Internet Bank of Indiana
Known for its , the First Internet Bank of Indiana, another online-only bank, offers a wide array of financial products, including two checking accounts, a savings account and CDs at several terms. Its money market account offers a decent APY, earning more interest than its free savings account (1.71% compared to 0.80%, respectively).
You need $100 to open the money market account, and unless you can maintain an average daily balance of $4,000 in the account, there’s a $5 monthly maintenance fee, which can cut into your savings over time.
Still, this account offers an extra perk: It will reimburse you up to $10 every month for fees incurred from using an out-of-network ATM. First Internet Bank allows up to six withdrawals per month. That said, if you don’t need ATM access or want to withdraw from your account frequently, there are higher APYs available from at other banks.
Ally
With and various checking, savings, investing and retirement accounts, Ally is one of the most popular online-only banks out there. Its money market account currently offers a 1.85% APY on all balance tiers, and Ally doesn’t charge monthly fees.
You don’t need an initial deposit to open the account, and you’ll have unlimited withdrawals if you can find one of (over 43,000 around the US). If you can’t find one of Ally’s ATMs, you can either transfer money to a checking or savings account with better ATM access or pay an out-of-network ATM fee, but Ally will reimburse you up to $10 per statement cycle for out-of-network ATM expenses. You can write checks from this account and also request a debit card for more accessibility.
CIT Bank
Our last pick on this list, CIT Bank — an online-only bank that’s a subsidiary of First Citizens Bank — has a 0.05% APY for its money market account, with no monthly fee. You only need $1,000 to open the account and it has suspended its withdrawal limit, so you can take cash out multiple times without penalty. CIT Bank also offers an eChecking account and several other financial products aimed at savings.
Money market accounts, compared
|
Bank |
APY |
Monthly fee |
Minimum deposit required |
|---|---|---|---|
|
Vio Bank |
2.15% |
$0 |
$100 |
|
Ally Bank |
1.85% |
$0 |
$0 |
|
Sallie Mae |
1.85% |
$0 |
$0 |
|
First Internet Bank of Indiana |
1.71% |
$5 |
$100 |
|
CIT Bank |
0.05% |
$0 |
$1,000 |
FAQs
What’s the difference between a savings account and a money market account?
A money market account is a type of savings account with checking account features (such as check or debit card access), which you won’t find with a standard savings account.
Should I open a savings account or a money market account?
Savings accounts and money market accounts are currently offering around the same APYs. (An APY — which is the rate of return earned on an investment, including compound interest — is effectively your interest rate for the year.) For either account, anything beyond 1.00% is considered a robust interest rate. That noted, several online-only banks, including Bask and SoFi, are offering savings account APYs that are higher than money market accounts on this list (2.20% and 2.00%, respectively). And national banks such as Wells Fargo, Chase and Bank of America aren’t offering good interest rates on either their savings accounts or destruction their money market accounts. If you’re looking for higher rates, you might be better off opening an account with an FDIC-insured online-only bank.
While savings accounts are more widely available than money market accounts, choosing between them does not need to be an either-or situation. For example, having multiple savings accounts could be a useful way to divide up your accounts based on your financial goals — you can open one account to save up for college and another one for a home.
There could be an advantage, however, to having a savings account at a bank where you already have a checking account and lines of credit. With savings, checking and credit accounts under one roof, it’s easier to transfer funds (free of fees) between accounts. Also keep in mind that some banks don’t issue debit cards for money market accounts, so having accounts with one bank that you can easily move money between may be helpful.
Rates as of Aug. 31, 2022.
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