Bankrate.com, January 1, 2019
What is a money market account?
A money market account (or MMA) is a savings account that allows a limited number of checks to be drawn from the account each month. The rates — called Annual Percentage Yields (APYs) — on money market savings accounts are typically higher than traditional savings accounts but may require larger minimum deposits and balances.
If you need more than occasional account access and are looking for higher yields, a money market account can be a better option than a traditional savings account. The best money market accounts offer compelling high-yield rates.
Best money market accounts & rates for January 2019
Institution APY Minimum to earn top APY VirtualBank 2.36% $100 Bay State Savings Bank 2.35% $5,000 earn.bank 2.31% $100 MemoryBank 2.30% $50 Northpointe Bank 2.30% $25,000 Western State Bank 2.25% $0 All America Bank 2.25% $500 Redneck Bank 2.25% $500 Pacific National Bank 2.25% $5,000 BankPurely 2.25% $25,000 iGObanking 2.25% $25,000
Note: If the minimum balance to earn the top yield is less than the minimum deposit, the minimum deposit is listed in the table.
Compare the best money market accounts and pick the one that offers the right minimum deposit and interest rate for your financial situation.
What money market accounts do
At their core, money market accounts are basically just a type of savings account, with some minor variations. How much interest a money market account pays, and whether it’s the highest-paying deposit product offered, varies from bank to bank. The interest rates tied to money market accounts are typically referred to as the annual percentage yield (or APY). This reflects how much money you can expect to earn with compound interest each year.
The best MMA rate available to all savers nationwide is 2.36 percent APY. That’s nearly 11 times higher than the national average, according to Bankrate’s latest national survey of banks and thrifts. But there are more than a dozen banks that offer money market rates as high as 2 percent APY.
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