Money Market Account Rates Today, December 21, 2024 (Best Account Provides 5.00% APY)

Between March 2022 and July 2023, the Federal Reserve raised its reference rate 11 times. As a result, interest rates on money market accounts (MMAs) rose sharply.

However, the Federal Reserve cut the federal funds rate by 50 basis points in September and another 25 basis points in November and December. So deposit rates (including money market account rates) have begun to fall. It’s more important than ever to compare MMA rates and make sure you’re earning as much as possible with your balance.

The national average money market account rate stands at 0.66%, according to the FDIC. This may not seem like much, but consider that three years ago it was only 0.07%, reflecting a sharp increase in a short period of time.

This is largely due to the monetary policy decisions of the Federal Reserve, which began raising its benchmark rate in March 2022 to combat soaring inflation. In fact, the Federal Reserve raised rates 11 times. But it eventually cut its benchmark rate three times by the end of 2024, causing deposit account rates to start falling.

Still, some of the top accounts currently offer more than 5% APY. Since these rates may not last much longer, consider opening a money market account now to take advantage of today’s high rates.

Here’s a look at some of the best MMA rates available today:

See our picks for the 10 best money market accounts available today >>

Additionally, the table below features some of the best savings and money market account rates available today from our verified partners.

The amount of interest you can earn with a money market account depends on the annual percentage rate (APY). This is a measure of your total earnings after one year by considering the base interest rate and how often the interest is compounded (money market account interest is typically compounded daily).

Let’s say you invest $1,000 in an MMA at an average interest rate of 0.66% compounded daily. At the end of a year, your balance would grow to $1,006.62—your initial deposit of $1,000, plus just $6.62 in interest.

Now let’s say you choose a high-yield money market account that offers a 5% APY. In this case, your balance would grow to $1,051.27 over the same period, which includes $51.27 in interest.

The more you deposit into a money market account, the more you stand to earn. If we took the same example of a money market account with a 5% APY, but deposited $10,000, your total balance after one year would be $10,512.67, meaning you would earn $512.67 in interest. ​