You might be sick of high borrowing rates, but there’s a silver lining to today's rate environment: You can score high rates for depositing your money, too. And a high-yield savings account isn’t your only option. Money market accounts offer a combination of above-average rates and easy access to your cash when you need it. They're the best of both worlds: the convenience of a checking account with the interest potential of a savings account.
Don’t just settle for any money market account, though. The best money market accounts offer annual percentage yields as high as nearly 4.5%. Start your search for your next account with our list of the best options available right now.
Quick look: The best money market accounts compared
| Bank | APY | Min. deposit to open | Monthly fee |
|---|---|---|---|
| Vio Bank | 4.41% | $100 | $0 |
| Quontic Bank | 4.25% | $100 | $0 |
| Sallie Mae Bank | 3.90% | $0 | $0 |
| Ally Bank | 3.70% | $0 | $0 |
| First Internet Bank of Indiana | 3.61% - 4.42% | $100 | $5 |
| EverBank | 4.00% | $0 | $0 |
| Discover | 3.60% - 3.65% | $0 | $0 |
More details on the best money market accounts
Vio Bank
- APY APY = Annual Percentage Yield.
- 4.41%
- Min. deposit to open
- $100
- Monthly fee
- $0
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 its Cornerstone Money Market Account with a 4.441% APY, with interest compounding daily.
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You won’t pay a monthly fee with Vio, unless you opt for paper statements ($5 per month). 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. Keep in mind this account doesn’t offer debit card access or check-writing privileges.
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 its Cornerstone Money Market Account with a 4.441% APY, with interest compounding daily.
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You won’t pay a monthly fee with Vio, unless you opt for paper statements ($5 per month). 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. Keep in mind this account doesn’t offer debit card access or check-writing privileges.
Quontic Bank
- APY APY = Annual Percentage Yield.
- 4.25%
- Min. deposit to open
- $100
- Monthly fee
- $0
Quontic Bank is a New York-based online bank with no physical branches. Its money market account offers a competitive APY and no monthly maintenance fees. You can open an MMA at 4.25% APYÂ with just a $100 minimum deposit. Interest is compounded daily and credited monthly.Â
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Quontic’s money market account includes debit card access and check-writing privileges. We like the level of accessibility you get with this account, but there is one potential drawback to consider: Quontic has daily and external transfer limits that range from $2,000 to $20,000. If you’re planning on moving a lot of money out of the account, this may be an issue.Â
Quontic Bank is a New York-based online bank with no physical branches. Its money market account offers a competitive APY and no monthly maintenance fees. You can open an MMA at 4.25% APYÂ with just a $100 minimum deposit. Interest is compounded daily and credited monthly.Â
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Quontic’s money market account includes debit card access and check-writing privileges. We like the level of accessibility you get with this account, but there is one potential drawback to consider: Quontic has daily and external transfer limits that range from $2,000 to $20,000. If you’re planning on moving a lot of money out of the account, this may be an issue.Â
Sallie Mae Bank
- APY APY = Annual Percentage Yield.
- 3.90%
- Min. deposit to open
- $0
- Monthly fee
- $0
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.
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Sallie Mae’s money market account includes check-writing features and has no withdrawal limits. It also has a relatively high 3.90% APY, which compounds daily and is paid monthly.
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.
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Sallie Mae’s money market account includes check-writing features and has no withdrawal limits. It also has a relatively high 3.90% APY, which compounds daily and is paid monthly.
Ally Bank
- APY APY = Annual Percentage Yield.
- 3.70%
- Min. deposit to open
- $0
- Monthly fee
- $0
With more than 2 million customers 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 3.70% APY on all balance tiers, and Ally doesn’t charge monthly fees.
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You don’t need an initial deposit to open the account, and you’ll have unlimited withdrawals if you can find one of Ally’s Allpoint ATMs (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 request a debit card for more accessibility.
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Another key selling point: Ally’s transaction limit is 10 withdrawals per statement period — higher than many banks that aim to limit them to just six. Plus, there’s no fee for going over the limit. However, you won’t want to do it regularly because the bank may close your account.
With more than 2 million customers 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 3.70% APY on all balance tiers, and Ally doesn’t charge monthly fees.
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You don’t need an initial deposit to open the account, and you’ll have unlimited withdrawals if you can find one of Ally’s Allpoint ATMs (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 request a debit card for more accessibility.
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Another key selling point: Ally’s transaction limit is 10 withdrawals per statement period — higher than many banks that aim to limit them to just six. Plus, there’s no fee for going over the limit. However, you won’t want to do it regularly because the bank may close your account.
First Internet Bank of Indiana
- APY APY = Annual Percentage Yield.
- 3.61% - 4.42%
- Min. deposit to open
- $100
- Monthly fee
- $5
Known for its above-average CD rates , 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 competitive APY of 3.61% for most savers. If you have a balance over than $1 million, you’ll earn a higher APY of 4.33%, but keeping $1 million in this account doesn’t make sense. It exceeds FDIC insurance limits.Â
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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. There is potential for fee savings, though: The bank will reimburse you up to $10 every month for fees incurred from using an out-of-network ATM.Â
Known for its above-average CD rates , 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 competitive APY of 3.61% for most savers. If you have a balance over than $1 million, you’ll earn a higher APY of 4.33%, but keeping $1 million in this account doesn’t make sense. It exceeds FDIC insurance limits.Â
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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. There is potential for fee savings, though: The bank will reimburse you up to $10 every month for fees incurred from using an out-of-network ATM.Â
EverBank
- APY APY = Annual Percentage Yield.
- 4.00%
- Min. deposit to open
- $0
- Monthly fee
- $0
EverBank is a full-service online bank with limited physical locations in Florida and California. Its High-Yield Money Market account currently pays 4.00% APY.
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There are no monthly maintenance fees for this account. Accounts with balances over $5,000 will receive unlimited out-of-network ATM fee reimbursements. However, accounts with balances below that threshold will receive up to $15 per statement cycle for out-of-network ATM fees. We also like that EverBank’s money market account includes debit card access and check-writing privileges.
EverBank is a full-service online bank with limited physical locations in Florida and California. Its High-Yield Money Market account currently pays 4.00% APY.
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There are no monthly maintenance fees for this account. Accounts with balances over $5,000 will receive unlimited out-of-network ATM fee reimbursements. However, accounts with balances below that threshold will receive up to $15 per statement cycle for out-of-network ATM fees. We also like that EverBank’s money market account includes debit card access and check-writing privileges.
Discover
- APY APY = Annual Percentage Yield.
- 3.60% - 3.65%
- Min. deposit to open
- $0
- Monthly fee
- $0
Discover is best known for its cash-back credit cards , but the bank offers a full suite of checking and savings products, including a money market account that pays 3.60% APY. (You can score a slightly higher rate of 3.65% with a balance of $100,000 or more.)Â
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Account holders get a debit card with access to more than 60,000 ATMs. Plus, there is no minimum deposit requirement, and you won’t need to worry about maintaining a minimum balance to avoid monthly fees.Â
Discover is best known for its cash-back credit cards , but the bank offers a full suite of checking and savings products, including a money market account that pays 3.60% APY. (You can score a slightly higher rate of 3.65% with a balance of $100,000 or more.)Â
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Account holders get a debit card with access to more than 60,000 ATMs. Plus, there is no minimum deposit requirement, and you won’t need to worry about maintaining a minimum balance to avoid monthly fees.Â
How to choose a money market account
There are several questions to answer when evaluating a money market account.Â
- What is the highest APY available?Â
- How can you access your funds?Â
- Does the account offer check-writing privileges or ATM access?
- What is the minimum balance requirement? Are there fees or penalties associated with balances dropping below that level?
- Are there limitations on the number of transactions permitted each month? What’s the excessive transaction fee if you exceed that amount?Â
- Is the account federally insured by the Federal Deposit Insurance Corporation or National Credit Union Administration?
Pros and cons of opening a money market account
Pros
- Balances can earn a competitive APY.
- Most banks and credit unions offer MMAs.
- Most banks let you access your money via ATM withdrawals or in-person withdrawals without a fee.
- Balances are insured by the FDIC or NCUA up to $250,000 per person, per ownership type, per institution.
- Unlike most CDs, MMAs have no lockup periods or early withdrawal penalties.
Cons
- Interest rates on MMAs are generally variable, making your return less predictable.
- Other low-risk savings options pay higher interest rates on deposit accounts, such as certificates of deposit.
- Some banks may limit the number of debit card purchases, online transfers and check transactions per month.
Money market accounts compared with other deposit accounts
The best high-yield savings accounts offer rates that can rival those available on money market accounts, but they don’t generally have check-writing privileges.Â
A certificate of deposit earns an APY that will vary based on the term. Longer-term CDs usually pay a higher APY than a money market account, but access to your money is limited until the CD reaches maturity. You’ll likely have a penalty fee if you withdraw funds before the CD term ends.Â
Money market mutual funds sound similar but are investments sold by brokerages and investment firms. Money invested in these funds is not insured by the FDIC or NCUA, so investors can experience higher growth rates, but there are limited guarantees if the money is lost. The Securities Investor Protection Corporation, or SIPC, protects the cash and securities in your brokerage account for up to $500,000 if your brokerage firm fails. Your firm must be an SIPC member to qualify.Â
How to open a money market account
You can typically open a money market account online in a few steps. Here’s what to do:
1. Compare your options. Before you open an MMA, compare rates, features and account requirements at different financial institutions to make sure you select the right fit for you.Â
2. Submit an application. Many financial institutions allow you to complete the application process online, or you can apply in person at a local branch. You’ll typically need to provide your Social Security number, physical address, contact information and a state-issued ID, such as a driver’s license, to verify your identity and open an account.
3. Fund your account. You’ll need to deposit at least the required minimum amount to fund your account. The minimum opening deposit will vary depending on the bank.Â
FAQs
Savings accounts are more widely available than money market accounts, choosing between them doesn’t need to be an either-or situation. For example, having multiple savings accounts could be a useful way to divide your savings based on your financial goals. For example, you can open one account to save up for college and another one for a home.
There could be an advantage to having a savings account at a bank where you already have a checking account and lines of credit. With your savings, checking and credit accounts under one roof, it’s easier to transfer funds (fee-free) 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.
Balances up to $250,000 per person, per ownership type, per institution are insured against bank loss or failure by the FDIC or NCUA. This makes a money market account at a federally insured bank or credit union a low-risk savings option.Â
You should also verify the security protocol for any institution you’re considering. Safeguarding your digital devices with passwords or biometric security features will also help protect your account access.
Money market account fees vary depending on the bank or credit union. Some banks don’t charge a monthly fee, while others can charge fees unless your balance meets a minimum threshold. Money market accounts also typically charge a fee for excessive withdrawals if the number of withdrawals exceeds six per month.
Yes, interest earned on money deposited in your money market account is taxable at your current tax rate. This is also the case with any interest earned in a savings or checking account.Â
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