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Oh my, you will love this list of the best money market accounts.
If you want to earn more interest on your savings, then a money market account is worth considering.
Money market accounts work similarly to savings accounts, and you can open one up at most banks. However, the best rates can be found at online banks.
A money market account may be an excellent location to store your cash, your emergency fund, a portion of your down payment for a house, or any other significant amount of money.
The best money market accounts strong rates and low fees to help you grow your bank balance.
So what are the best money market accounts to get?
Best Money Market Accounts
Here they are, the best money market accounts you can open.
Quontic – 5.00% APY
Quontic Bank offers you the ability to accrue an APY that’s over 10x higher than the national average.
Quontic was named one of the Best Money Market Accounts in 2022 by Go Banking Rates. This is primarily because you won’t be charged for maintaining or over-drafting your account ever. Plus, you can open an account online in just 3 minutes and with only a $100 opening deposit.
Your money is FDIC insured to the maximum legal limits and includes advanced security monitoring.
This Money Market account from Quontic offers an APY over 10x the national average. To take advantage of this, one can open the account with a minimum deposit of $100. However, it is important to note that there is a limit of 6 transfers and withdrawals per statement cycle. The account's APY is earned on the daily balance, making it an effortless way to grow one's money.
U.S. Bank – up to 4.25% APY
U.S. Bank, established in 1863 and headquartered in Minneapolis, MN, provides the U.S. Bank Elite Money Market Account, which can be availed in 26 states throughout the United States.
The U.S. Bank Elite Money Market Savings Account has tiered interest rates that pay more for higher balances. U.S. Bank money market offers an APY of up to 4.25% on balances $25,000+.
Experience banking made convenient with U.S. Bank. Enjoy a hassle-free and speedy application process online to get you started on your financial journey. Plus, with its cutting-edge U.S. Bank Mobile App, you can bank anytime and anywhere, right at your fingertips.
Related: U.S. Bank Promotions and Bonuses
CIT Bank – 1.55% APY
CIT Bank aims to be your go-to online banking solution. While they don’t have local branches you can walk into, they do offer easy-to-open accounts with low opening deposit requirements. CIT Bank is great for people who like the convenience of using your phone or computer to make banking transactions. You can access their accounts from almost anywhere 24 hours a day.
The CIT Bank Money Market Account offers a 1.55% APY interest rate for its money market accounts that require $100 to open. With a CIT Bank Money Market Account, you’ll pay quite a few transaction fees, but the company offers CIT bank promos for new customers that make it worthwhile.
Experience a convenient and secure all-digital way to grow and access your money. Earn a competitive interest rate. Easily pay people and bills, with no monthly fees.
Axos Money Market – 0.25% APY
Established in 2000, Axos Bank offers its Money Market account for individuals who have at least $1,000 to open the account. Keep your account balance above $1,000 to avoid the $8 service fee. Axos allows you to write checks from its Money Market account, and there are no minimum balances or monthly maintenance fees.
With a 0.25% APY interest rate, Axos is FDIC insured to protect your investment.
The Axos Bank High Yield Money Market account combines high-yield returns with convenient access, offering a competitive APY, no monthly fees, and a low $1,000 minimum deposit. With check-writing privileges and a free debit card, it gives you the flexibility of a checking account, plus mobile and online banking for easy account management.
Other Money Market Accounts
Honorable mentions include:
Barclays Bank – 4.50% APY: Earn a 4.50% APY on balances up to $250,000, or 4.80% for higher balances, with no minimum balance requirements or monthly fees.
Capital One 360 – 4.00% APY: Open a Performance Savings account to enjoy a 4.00% APY from Capital One 360, with no monthly fees and no minimum balance requirement. This account also includes Capital One promotions for new customers, including zero monthly fees and no minimum balance required.
Discover Bank – 3.80% to 3.85% APY: Discover offers 3.80% APY on balances below $100,000 and 3.85% APY for higher amounts. A $2,500 minimum deposit is needed to open, with no fees and access to a large ATM network.
First Internet Bank – 3.56% APY: Access a 3.56% APY with First Internet Bank’s tiered account structure. FDIC-insured with a $100 minimum to open, this account requires a $4,000 balance to waive the $5 monthly fee, plus $10 monthly ATM fee refunds.
Marcus by Goldman Sachs – 3.75% APY: Marcus offers 3.75% APY with no minimum deposit or transaction fees, making it a solid choice for flexibility.
Sallie Mae – 4.20% APY: Enjoy a 4.20% APY with Sallie Mae’s money market account, which is FDIC-insured. There are no monthly maintenance fees or minimum balance requirements, though some transaction fees may apply.
What is a Money Market Account
Money market accounts allow you to get a better interest rate on your savings. These accounts operate similarly to savings accounts and are available at most banks. Like savings accounts, they’re typically insured up to $250,000 by the FDIC or NCUA. Additional perks include the potential for a debit card and/or check-writing capabilities.
Basically, money market accounts are a hybrid of a checking account with perks and a savings account with a high interest rate, all rolled into one. When you open a money market account, you can take advantage of a higher interest rate to increase your savings.
You won’t have to worry about market trends and taking risks when you open a money market account. Instead, your money sits in your account and accrues interest as the years go by. You can take it out any time and do with it what you please.
However, when compared to a savings account, money market accounts are limited to a maximum of 6 withdrawals per month. You may also have a limit on how many checks you can write and transfers you can make, depending on where you open your money market account. Most banks, credit unions, and investment firms offer money market accounts to their customers.
When compared to CDs, money market accounts score higher in terms of liquidity. While CDs might have a higher interest rate, you will have to keep your money locked up for 5-10 years and you’ll pay a penalty for cashing in before the expiration date. But where CDs are always FDIC-insured, you might come across a money market account that is not.
What to Look For in a Money Market Account
All money market accounts were not created equal. Here are a few characteristics you’ll want to keep an eye out for when considering money market accounts:
- Interest rates: Banks may advertise a killer interest rate, but be careful to read the fine print. These introductory rates won’t last long and typically give way to lower ongoing rates. You should also do your research when it comes to interest tiers, which can get complicated fast.
- Fees: These include monthly maintenance fees, minimum balance fees, transfer fees, etc.
- Minimum balances: The balance required to open an account is not the same as what might be required within the account once it’s established. Keep an eye on these numbers to prevent unseen fees for having less in your account than is required.
- Restrictions: Most money market accounts are limited to 6 outgoing transfers, but check with your financial institution to see what their policy is.
- Perks: Banks will offer specific perks to stand out from their competitors. These include the ability to write checks from your account, a corresponding debit card, ATM fee reimbursement, or online tools.
You might have heard of retirement money market accounts. These accounts provide you with tax advantages if you pair them with an IRA and can be good for liquidity in the case of an emergency. Ask your bank if they offer these types of money market accounts if you’re interested in setting one up.
Many major banks will offer traditional money market accounts, but you can also find money market accounts from online-only financial institutions as well. If you find that your funds go above the FDIC-insured limits for your new money market account, consider spreading out your wealth to several accounts for ultimate protection.
How to Open a Money Market Account
Opening a money market account isn’t much different from opening a checking or savings account, though there are certain aspects that vary slightly. Let’s take a closer look at how you can open a money market account today.
- Search out money market rates from banks you trust. If you’re not sure which banks to consider, check out our list below. We’ve got over a dozen listed to help you get started with a money market account.
- Once you’ve decided on a financial institution, it’s time to complete an application. The application varies from one bank to the next but includes some of the same basic information. Examples include your ID (such as a driver’s license), your birth certificate, a social security number, your phone number, and/or proof of address. You can typically complete an application online or in person unless otherwise noted by your financial institution of choice.
- Funding your account comes next. This is common for most money market accounts, but not always necessary. If you are applying online, you’ll likely need to do an electronic transfer. However, you can also pay with cash or a check if you open a money market account in person.
- Depending on the terms of the money market account, you may need to set up banking and/or direct deposit to complete the sign-up process. Link your accounts as necessary and you should be ready to use your money market account any way you wish.
Now that you know how to open a money market account, let’s take a look at a few you’ll want to take advantage of to get the best interest rate possible. While other perks can certainly help offset a lower interest rate, it’s a good idea to go after money market accounts that offer you a high interest rate from the get-go.
FAQs
Quontic Money Market Account offers an interest rate of 4% or more for their account holders.
Money market accounts typically offer a better interest rate than a high-yield savings account. At the same time, the best one for you depends on what you’re looking to do with the account and what your financial goals are.
Money market accounts are not always FDIC-insured and most banks limit the number of transactions you can make each month. Plus, money market accounts are not the best for earning large amounts of interest fast or growing wealth.
Make the Most of Your Savings with Money Market Accounts
Now that we have shown you our candidates for the best money market accounts, hopefully, you understand what features you should look for when deciding between them.
These features can make or break a money market account, especially if you’re looking for something in particular.
We hope you’ve found this article on money market accounts useful. These accounts can be a great way to earn more interest on your savings than even high-yield savings accounts.
Plus, you’ll have access to unique features from each financial institution, depending on where you bank. With the right approach, money market accounts can round out a portfolio for a solid investment strategy.
