5 Best Money Market Accounts of 2024
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4.20%
$0
$0
Yes
4.65%
$0
$0
No
5.15%
$5,000
$0
No
4.57%
$5,000
$0 - $10
Yes
3.80%
$2,500
$0
Yes
*Rates and APYs are subject to change. All information provided here is accurate as of April 30, 2024.
Why Trust Us?
Our editors and writers independently evaluate banks and credit unions ensuring that our content is precise and guided by editorial integrity. Read the full methodology to learn more.
- Dozens of financial institutions reviewed.
- Numerous criteria used to determine the best of categories.
- Multiple authoritative sources consulted.
Best Money Market Accounts Takeaways
Our top picks include Ally, Discover, Sallie Mae, UFB Direct and Western Bank.
- A money market account is a type of account offered by banks and credit unions.
- Like other deposit accounts, money market accounts are insured by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA) for balances up to $250,000.
- Money market accounts tend to pay you higher interest rates than other types of savings accounts.
- However, money market accounts usually limit the number of transactions you can make by check, debit card or electronic transfer, but they generally offer ATM access with unlimited withdrawals.
Money market accounts are deposit accounts that earn you interest on top of your balance. They're sort of like a checking and savings account combined: Your money remains liquid — as in, you can access the funds whenever you need them — and also generates higher-than-average returns compared to traditional savings accounts.
Money market accounts generally pay a higher annual percentage yield (APY) than traditional savings accounts, but some companies limit withdrawals, may charge fees or not provide the advertised APY if you don’t meet minimum deposit and minimum balance requirements.
Our Top Picks for Best Money Market Accounts of 2024
The following are Money’s choices for the Best Money Market Accounts of 2024, listed alphabetically:
- Ally Bank: Best for High APY with No Minimum Balance
- Discover: Best for High APY with Widespread ATM Access
- Sallie Mae: Runner-up for High APY with No Minimum Balance
- UFB Best Money Market Account: Runner-up for Best for High APY with $5K Deposit
- Western Bank: Best for High APY with $5K Deposit
Best Money Market Accounts Reviews
Best for High APY with No Minimum Opening Deposit: Ally Bank, 4.20% APY
- No overdraft fees
- Smartphone check deposit
- Includes debit card
- Unlimited ATM withdrawals
- The outgoing domestic wire fee is $20
- No cash deposits
- APY
- 4.20%
- Minimum deposit to open
- $0
- Maintenance fees
- $0
With a competitive APY and no minimum deposit requirement for opening an account, Ally Bank’s money market account is perfect for new savers. There's no monthly fee with this account, regardless of your balance. You also get unlimited ATM withdrawals, and Ally will reimburse your ATM fees up to $10/month.
Deposits can be made remotely with your smartphone, via electronic transfer online, Automated Clearing House (ACH) deposit via your employer, wire transfers or checks by mail.
Best for High APY with Widespread ATM Access: Discover, 3.80% APY
- No minimum balance requirement
- Free debit card access at 60K+ ATMs
- Mobile check deposit
- Free overdraft protection
- $2,500 minimum to open
- Withdrawals capped at six per month
- Must enroll in direct deposit for full APY on both accounts
- APY
- 3.80%
- Minimum deposit to open
- $2,500
- Maintenance fees
- $0
Account holders of Discover’s money market product aren’t charged fees for maintenance or overdrafts. There’s no minimum balance fee either, but an initial deposit of $2,500 is required to open an account. Balances of $100,000 and more get the highest APY.
Discover has an extensive ATM network, with over 60,000 AllPoint and MoneyPass ATMs that you can access free of charge. To deposit money, customers can use any of the following approaches:
- Use the mobile check deposit feature on the app
- Set up direct deposit
- Make online transfers from external banks
- Mail a check
Runner-up for High APY with No Minimum Balance: Sallie Mae, 4.65% APY
- No opening deposit
- No minimum balance
- Mobile deposit via app
- Check-writing privileges
- No debit card
- Most deposits do not process immediately
- The outgoing wire transfer fee is $20
- Limits on mobile check deposits
- APY
- 4.65%
- Minimum deposit to open
- $0
- Maintenance fees
- $0
Yes, Sallie Mae has more to offer than student loans, and one of those things is Sallie Mae’s money market deposit account. There’s no minimum balance requirement to open an account — a helpful feature for people who may be starting small with their initial deposit — and no monthly fees are applied.
Deposits can be made through the Sallie Mae mobile app, direct deposits, ACH transfers from other financial institutions or by sending a check to Sallie Mae’s Chicago office. It's worth noting, however, that for the first 30 days after opening an account, all deposits are held for five business days. After that period, ACH credits process immediately, but check and electronic deposits still take five days to process. Sallie Mae mobile deposits are limited to 10 deposits per month.
The Sallie Mae money market account doesn't come with a debit card, so customers don't have instant access to cash. Still, there's no limit on how many transfers you can make to other accounts. You can also access your funds via checks, which are offered at no cost at the time of account opening.
Runner-up for High APY with $5K Deposit: UFB Secure Money Market Account, 5.25% APY
- SMS banking without Wi-Fi
- Debit card included
- Checks included
- Mobile deposit via app
- Minimum $5,000 to open account
- $10 monthly fee if daily balance is below $5,000
- Six withdrawals per month maximum
- APY
- 4.57%
- Minimum deposit to open
- $5,000
- Maintenance fees
- $0 with $5,000 balance
If you’re ready to deposit $5,000 into a new money market account, the Preferred Money Market Account offered by UFB Direct, an Axos Bank brand, could be a great fit. The account comes with checks and a debit card, which can be used at more than 60,000 ATMs at no charge.
Deposits can be made through online transfers from an external account or through mobile check deposits. So long as you maintain a balance of $5,000 or greater, the account is free to use. (If your balance drops below that amount, you’re charged a $10 monthly fee.)
One caveat: Transaction limitations are specific to each account holder. When you set up your account with UFB Direct, a representative will discuss options with you. Be sure to ask specifically what your limitations are.
Best for High APY with $5K Deposit: Western Bank High-Yield Money Market, 5.15% APY
- Zero monthly maintenance fees
- No minimum deposit or balance requirements
- No fees for transferring to and from other financial institutions
- No physical branches
- $10 excessive transaction fee
- $25 overdraft fee
- No checks or debit cards
- APY
- 5.15%
- Minimum deposit to open
- $5,000
- Maintenance fees
- $0
Based in North Dakota, Western State Bank combines the best elements of traditional high-yield savings and money market accounts with its High Yield Money Market product. There’s no minimum balance requirement or fees, but an initial deposit of $5,000 is required.
As such, this option is great for people who are ready to set aside a lump sum for interest accrual, while retaining the option to use the bulk of those funds if need be — without being penalized for a low balance. Western also allows up to 10 withdrawals per month; most banks only offer six.
While Western State Bank doesn’t offer a mobile check deposit option for its high-yield money market accounts, there are several other ways to fund it. Clients can make ACH transfers, wire transfers (no limits, 10x per month, one outgoing and income per month reimbursed) or send checks to Western overnight, with delivery and shipping fees covered by the bank. And while there's a 60-day waiting period from the time you open an account to the time you can link to external accounts, once that is set up, online transfers are simple.
Other money market accounts we considered
Synchrony Bank - Money Market
- No minimum opening deposit
- No monthly fees
- Checks provided
- Debit card provided
- APY is only 2.25%, lower than other financial institutions
- Account subject to closure if $0 balance for 60-plus days
Synchrony Bank’s money market account is a virtually free product, with no minimum balance requirement and no maintenance fees. There’s no minimum amount required to open an account, either. Debit cards and checks are also included.
Why Synchrony Bank didn’t make the cut: Money market accounts at other financial institutions have a higher APY than Synchrony Bank.
CIT Bank - High Yield Money Market
- No monthly service fees
- Link Zelle to send and receive funds
- Mobile check deposit
- APY is 1.55%, lower than other financial institutions
- Minimum opening deposit $100
CIT Bank’s money market account is one of few that includes the option to link Zelle, a peer-to-peer payment platform, to send and receive money. It’s also free of monthly maintenance charges — but an initial deposit of $100 or more is required to open a CIT High Yield Money Market account.
Why CIT Bank didn’t make the cut: The interest rate for CIT Bank’s High Yield Money Market account is lower than what many other financial institutions currently offer.
EverBank - Yield Pledge Money Market Account
- No monthly account fee
- Mobile check deposits
- $500 minimum to open
- APY for less than $10K is 3.75%
The Yield Pledge Money Market Account from EverBank — formerly TIAA Bank — offers a high one-year introductory APY as well as a high APY after the first year. However, qualifying for this rate requires a high account balance.
Why EverBank didn’t make the cut: To get the best APY with the bank’s Yield Pledge Money Market Account, you need to have $100,000 in your account.
Best Money Market Accounts Guide
What is a money market account?
A money market account — or MMA — is a type of savings account that earns interest, which is typically expressed as its APY. Most MMAs come with a debit card and checks, though withdrawals can be limited to six per month or statement cycle. The Federal Deposit Insurance Corporation (FDIC), an independent agency of the U.S. government, insures money market accounts for up to $250,000 per depositor.
What is a high-yield money market account?
A high-yield money market account is very much like a typical money market account. The distinction of “high yield” indicates that the account’s APY is higher than a traditional savings account or an MMA. Like MMAs, minimum initial deposits, minimum account balances and transaction limits can vary across financial institutions.
How does a money market account work?
Money market accounts are interest-bearing deposit accounts, meaning your funds will earn interest. The interest is expressed as an APY which, with most accounts, is calculated daily based on your end-of-day balance and credited monthly. However, money market accounts are best for long-term savings. For example, in five years’ time, a money market account with a starting balance of $5,000 and an APY of 4% will earn $1,106.95 in interest.
Best money market rates
Some of the highest money market rates as of April 2024 include:
- Ally Bank: 4.20% APY
- Discover: Up to 4.00% APY
- Sallie Mae: 4.65% APY
- UFB Direct: 5.25% APY
- Western Bank: 5.15%
Are money market interest rates fixed?
Money market rates are not fixed; they are variable. An account’s APY is subject to change at any moment and without notice at the discretion of the financial institution. Increases or decreases in rates can be caused by a number of factors, such as a financial institution’s response to Federal Reserve policies or the rates of competitors.
Money market account pros and cons
- Many accounts offer APYs of 5% or more
- Easy access to deposits through ATMs, checks, or transfers
- Little to no risk involved: MMAs are insured by government agencies (FDIC and NCUA) for up to $250,000
- Withdrawals may be limited to six per month; exceeding this amount may incur a fee
- Some accounts have minimum opening and minimum balance requirements
- Some accounts have maintenance fees that are only waived with higher balances
How to choose a money market account
When evaluating your options, keep in mind that the best one accounts offer:
- High APYs
- Zero or low monthly feets
- Flexible policies for account transfers
- Practical monthly withdrawal limits
- Debit/ATM cards
How to open a money market account
1. Compare the proper money market account to accommodate your needs.
2. Gather all necessary documentation you need to sign up for your money market account. This includes information like your Social Security number and identification.
3. Make sure you have enough money to make your minimum deposit, if necessary.
4. Complete the application to open your selected money market account. Many banks offer online applications. If your preferred bank does not offer an online application, you must visit a branch.
5. Fund your money market account through check, direct deposit or transfer.
Other alternatives to money market accounts
Savings account vs money market account
Interest rates for money market accounts and high-yield savings accounts are currently quite similar. The two financial products share other features too, but there are a few key differences.
Money market account
High-yield savings account
Often comes with a debit card for use at ATMs or businesses
Does not typically come with a debit card
Typically comes with checks
Does not typically come with checks
Can transfer to and from external accounts, though transfers may be limited to six per month or statement cycle
Can transfer to and from external accounts, though transfers may be limited to six per month or statement cycle
May have minimum balance requirement (varies by financial institution)
Usually no minimum balance requirement (varies by institution)
May charge maintenance fee (varies by financial institution)
Usually no maintenance fee (varies by institution)
Certificates of deposit (CDs) vs money market account
Money market accounts and certificates of deposit (CDs) offer different methods for helping you make the most of your money. Note: CD rates often have higher interest rates than those of money market accounts, but not always.
Money market account
Certificate of deposit (CD)
Add or withdraw money to your balance while account is open
Account holds a fixed amount
Earns interest on balance while the account is open
Earns interest on fixed amount CD for fixed period of time, e.g., three months, one year, five years
Interest rate is subject to change
Fixed interest rate
No penalty for withdrawing funds (within monthly or statement cycle limitations)
May incur fee for early withdrawal
FDIC or NCUA insured up to $250,000
FDIC insured up to $250,000
Open account through bank or credit union
Purchase through bank, brokerage firm or independent salesperson
Minimum deposit may be required
Minimum purchase may be required to open account
Money market fund vs money market account
While they sound similar, money market accounts and money market funds, also called money market mutual funds, are two entirely different products. (Those who are new to investing may need some guidance if they’re interested in money market funds. Read up on how to choose a financial advisor to get started.)
Money market account
Money market fund
It is owned by a bank
It is sponsored by an investment fund
Savings account that holds money
Investment account that holds a bundle of securities, e.g. certificates of deposit, Bankers’ Acceptances, commercial paper (short-term, unsecured debt), treasury bill, repurchase agreement
FDIC or NCUA insured up to $250,000
Not federally insured
Variable interest earned based on bank/credit union rates
Variable interest earned based on market values
Open online or at branch and deposit money
Opened through a brokerage
May have monthly maintenance fee
May have management fees (also called the expense ratio)
Access to funds through a limited number of withdrawals (e.g. transfers), plus debit card and checks
Access to funds is unlimited
Best Money Market Accounts FAQs
What is a money market account?
Are money market accounts FDIC insured?
Are money market accounts worth it?
Are money market accounts taxable?
What are the best money market accounts?
Since the point of a money market account is to earn money from your savings, the best money market accounts have competitive interest rates. Many banks offer annual percentage yield rates between 2.00% and 4.50%. (Per FDIC regulations as of February 21, 2023, money market account interest rates cannot be higher than 5.08%.)
The ideal account won't include a minimum balance fee or a monthly maintenance fee. Debit cards and checks are provided with many accounts, and some banks do not have limitations on certain types of transactions, such as ATM withdrawals.How We Chose the Best Money Market Accounts
Our methodology in creating our 5 Best Money Market Accounts of 2023 included researching nearly 50 financial institutions, ranging from national banks, regional banks, federal credit unions and online savings accounts.
Annual percentage yield rates played a major role in determining whether or not a financial institution’s money market product made our list. We compared competitive APYs to national average rates and showcased financial institutions with the highest interest rates.
We also considered monthly fees, minimum balance requirements and how customers can access funds (debit cards, checks, transfers). We ensured all financial institutions featured are classified as member FDIC or NCUA.
Though we always try to include accurate and up-to-date information on regulatory and legal actions, we don’t claim this information is complete or fully up to date. Interest rates/annual percentage yields are subject to change. As always, we recommend you do your own research as well.
Summary of Money’s 5 Best Money Market Accounts
- Ally Bank: Best for High APY with No Minimum Balance
- Discover: Best for High APY with Widespread ATM Access
- Sallie Mae: Runner-up for High APY with No Minimum Balance
- UFB Best Money Market Account: Runner-up for Best for High APY with $5K Deposit
- Western Bank: Best for High APY with $5K Deposit