5 Best Money Market Accounts

*Rates and APYs are subject to change. All information provided here is accurate as of May 31, 2023.

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 — and also generates returns. Some people use money market accounts as designated emergency funds, others use them for short-term financial goals.

Money market accounts generally pay a higher annual percentage yield (APY) than savings accounts, but be sure to read the fine print before you sign up: some companies limit the number of withdrawals you can make per month.

Either way, money market deposit accounts are typically insured up to $250,000 through the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA), so these accounts are generally considered low-risk.

Our Top Picks for Best Money Market Accounts of 2023

• Ally Bank: Best for High APY with No Minimum Balance
• Sallie Mae: Runner-up for High APY with No Minimum Balance
• Western Bank: Best for High APY with $5K Deposit
• UFB Best Money Market Account: Runner-up for Best for High APY with $5K Deposit
• Discover: Best for High APY with Widespread ATM Access

Best Money Market Accounts Reviews

With a competitive annual percentage yield and no minimum deposit required to open an account, the Ally Bank 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 the ATM fees you rack up (up to $10/month).

Deposits can be made through multiple routes: Remote deposit on your smartphone, electronic transfer online, Automatic Clearing House (ACH) deposit via your employer, wire transfers and checks by mail.

Yes, Sallie Mae has more to offer than student loans, and one of those things is the Sallie Mae 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.

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 you set that up, online transfers are super simple.

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.

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 the mobile check deposit feature on the app, set up direct deposit or make online transfers from external banks. Discover Bank also accepts checks by mail.

Other money market accounts we considered

Synchrony Bank - Money Market

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

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.

TIAA Bank - Yield Pledge Money Market Account

The Yield Pledge Money Market Account from TIAA Bank offers a high annual percentage yield, but to get this rate, your balance will need to be higher than the $500 minimum required to open the account.

Why TIAA Bank 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 (MMA) is a type of savings account that earns interest, which is typically expressed as its annual percentage yield (APY). Most MMAs come with a debit card and checks, though withdrawals are typically 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.

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 annual percentage yield (APY) is higher than a traditional savings account. 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 annual percentage yield (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 $5,000 balance and an APY of 3.30% will earn $882 in interest.

Best money market rates

Some of the highest money market rates as of May 2023 include:

• UFB Premier: 4.81% APY
• TIAA Bank: Up to 4.25% APY
• Sallie Mae: 4.15% APY
• Ally Bank: 4.15% APY
• Discover: Up to 3.85% APY

Are money market interest rates fixed?

Money market rates are not fixed; they are variable. An account’s annual percentage yield (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

How to choose a money market account

The best money market accounts have high annual percentage yield rates and zero or low monthly fees. If you want frequent access to your money market funds, check the account policy on transfers to outside accounts, as some institutions limit withdrawals to six per month or statement cycle. Additionally, a debit/ATM card and checks are bonuses, not standard — be sure to thoroughly review account features.

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.

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 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.)

Jumbo money market account vs regular money market account

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
• Sallie Mae: Runner-up for High APY with No Minimum Balance
• Western Bank: Best for High APY with $5K Deposit
• UFB Best Money Market Account: Runner-up for Best for High APY with $5K Deposit
• Discover: Best for High APY with Widespread ATM Access