A well-rounded financial portfolio includes a variety of savings and investment products for both short-term stability and long-term growth. One of the assets you might consider adding to your portfolio is a money market account, which can offer greater returns than a traditional savings account — and without tying up your money for a fixed period.
Most banks and credit unions offer money market accounts, so it’s worth comparing interest rates and annual percentage yields before opening an account. In general, money market accounts may have higher minimum balance requirements than regular savings accounts, but if you have the funds available, one of these accounts could be a valuable place to hold your money for the short term.
Methodology
Our team of experts at CNN Underscored Money analyzed dozens of accounts from more than 30 financial institutions to determine the rankings for the best money market accounts. This included accounts from a mix of traditional banks, online banks and credit unions available nationally. We heavily emphasized APY because that’s the factor that will allow your money to grow the fastest. You can read more about our methodology below.
Show summary
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First Foundation Bank Online Money Market
: Best for no monthly fees
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Ally Bank Money Market Account
: Best for no minimum deposit requirement
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Discover Money Market Account
: Best for no balance to avoid fees
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iGObanking iGOmoneymarket
: Best for low fees
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Redneck Bank Mega Money Market
: Best for APY on low balances
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EverBank Yield Pledge Money Market
: Best for introductory APY offer
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Quontic Money Market Account
: Best for APY across all balance tiers
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Connexus Credit Union Money Market Account
: Best for those who want a credit union
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UFB Direct Secure Money Market
: Best for app ratings
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ZYNLO Bank Money Market Account
: Best for account insurance
First Foundation Bank Online Money Market
Best for no monthly fees
APY
5.25%
Monthly maintenance fee
$0
Minimum deposit requirement
$1,000
5/5
Why we picked it
First Foundation Bank doesn’t have the name recognition of some other banks on our list, but the Texas-based financial institution has been around since 2007. The bank has $13.9 billion in assets as of March 2023 and is FDIC-insured, giving potential customers peace of mind should the bank unexpectedly fail.
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The money market account at First Foundation is easy to open online, and there’s no minimum balance requirement to avoid a monthly fee.
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If you prefer to bank in person, First Foundation Bank does offer 31 branches scattered across five states (California, Hawaii, Nevada, Texas and Florida).
Pros
- $0 monthly fee
- 24/7 customer service
- Branch locations in some state
Cons
- $20 excess transaction fee
- $1,000 minimum opening balance
- Wire transfer fees
Who should use it
This account is best for those who don’t plan to make many regular transactions because there’s a $20 excess transaction fee after six transactions in a statement cycle.
Ally Bank Money Market Account
Best for no minimum deposit requirement
APY
4.40%
Monthly maintenance fee
$0
Minimum deposit requirement
$0
5/5
Why we picked it
Ally Bank has big name recognition among online banks, but its history goes back much farther than the internet era. Ally opened in 1919 as GMAC, a division of General Motors, to help dealers build their inventory and has evolved through the years, giving it longevity and stability. Today, Ally is FDIC-insured.
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Ally’s money market account has no minimum balance requirement to avoid fees and no minimum deposit, although you will pay a $10 fee for excess transactions after six in a statement cycle.
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With your Ally money market account, you can make unlimited withdrawals at one of 43,000-plus Allpoint ATMs at no cost. Ally will reimburse you up to $10 per statement cycle if you use a non-Allpoint ATM that charges fees.
Pros
- $0 minimum deposit
- $0 monthly fee
- 24/7 customer service
Cons
- APY lower than some on this list
- Low Trustpilot rating
- $10 excess transaction fee
Who should use it
This account is ideal for someone who doesn’t have much money to open their account or want to be locked into a minimum balance and is willing to earn a lower APY (4.40%) than other accounts on this list for that flexibility. You should also be comfortable with online banking since Ally has no physical locations.
Discover Money Market Account
Best for no balance to avoid fees
APY
4.25%
Monthly maintenance fee
$0
Minimum deposit requirement
$2,500
5/5
Why we picked it
Consumers are familiar with Discover for its credit cards, but it also offers an array of banking products. Those include checking and savings accounts, loans and money market accounts.
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Discover offers both debit cards and check writing for money market accounts. With this type of account through Discover, you’ll be able to access your money at more than 60,000 ATMs nationwide.
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Discover’s MMA comes with up to a 4.25% APY (4.20% if your balance is below $100,000), so you can find a higher APY elsewhere. That said, this account comes with plenty of flexibility because there’s no monthly balance requirement to avoid fees or maintain your account. However, you will need to deposit at least $2,500 in order to open an account.
Pros
- Almost no account fees
- Wide-ranging ATM access
- Strong app ratings
Cons
- Lower APY
- $2,500 minimum opening deposit
- Best rate requires $100,000 balance
Who should use it
Although Discover has a high minimum opening deposit of $2,500, its money market account carries no account fees except for outgoing wire transfers ($30). That makes it ideal for customers who have ample money available at the time of opening but want flexibility after the account is open.
iGObanking iGOmoneymarket
Best for low fees
APY
5.05%
Monthly maintenance fee
$0
Minimum deposit requirement
$25,000
4.9/5
Why we picked it
iGObanking is the online division of New York-based Flushing Bank, which has been in existence since 1929 and is FDIC-insured. Being an online bank, iGObanking can offer better APY rates because it doesn’t have the overhead costs of brick-and-mortar banks.
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The iGOmoneymarket account excels with low fees, 24/7 customer service and a strong APY of 5.05%, but the major drawback is a large $25,000 minimum opening deposit, which limits who will be able to use this account. You’ll also need to maintain at least a $25,000 balance to earn interest.
Pros
- 24/7 customer service
- No minimum balance to avoid fees
- No maintenance fees
Cons
- $25,000 minimum opening deposit
- No check-writing privileges
- APY doesn’t rise with higher balances
Who should use it
Those looking for a strong APY and have a large amount of money to invest upfront. Also, it’s best for those who won’t need to use checks because there are no check-writing privileges with this account.
Redneck Bank Mega Money Market
Best for APY on low balances
APY
5.05%
Monthly maintenance fee
$0
Minimum deposit requirement
$500
4.8/5
Why we picked it
Redneck Bank is the online banking division of All America Bank, which was founded in Mustang, Oklahoma, in 1969 and is FDIC-insured. The bank also offers a high-interest checking account with a 5.30% APY.
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The money market account offers a strong 5.05% APY on balances up to $100,000 (and only 0.50% APY over $100,000), along with no monthly maintenance fees, a debit card and check-writing privileges.
Pros
- High 5.05% APY
- No maintenance fee
- Checking accounts with 5.30% APY also available
Cons
- Customer service only available during regular business hours
- High APY only on balances up to $100,000 (0.50% APY on balances over $100,000)
- Below average Apple and Google app ratings
Who should use it
Redneck Bank is a good option for those comfortable with online banking and with balances less than $100,000 so they can take advantage of the excellent APY.
EverBank Yield Pledge Money Market
Best for introductory APY offer
APY
4.75%
Monthly maintenance fee
$0
Minimum deposit requirement
$0
4.8/5
Why we picked it
EverBank became chartered nationally in summer 2023 when TIAA Bank, based in Jacksonville, Florida, was sold to private investors.
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EverBank guarantees that each month it reviews the APYs being offered by competitors and will adjust its rates, as needed, to make sure they are among the top 5%.
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EverBank also has a strong introductory offer for first-time Yield Pledge Money Market holders. Those customers will earn a fixed APY of at least 4.75% for the first year with no minimum deposit.
Pros
- Strong introductory offer
- No minimum opening deposit or monthly maintenance fee
- Guarantees APY will be in top 5% of competitor banks
Cons
- Lower 4.30% APY beyond introductory offer
- $5,000 minimum balance to earn unlimited ATM fee reimbursem*nt
- Low Apple Store ratings
Who should use it
This account is excellent for first-time EverBank money market customers who want to earn a solid, fixed APY for the first year.
Quontic Money Market Account
Best for APY across all balance tiers
APY
5.00%
Monthly maintenance fee
$0
Minimum deposit requirement
$100
4.7/5
Why we picked it
Quontic launched as a community bank in New York City, but it has since sprouted from the Big Apple. Quontic now writes home loans in all 50 states and offers a variety of FDIC-insured checking and savings products.
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The Quontic Money Market Account requires a $100 minimum opening deposit but pays a high APY of 5.00% on all balance tiers, making this one of the best APYs most customers can access. Additionally, the account comes with a debit card for easy access to your money at 90,000 surcharge-free ATMs around the country.
Pros
- High 5.00% APY
- Interest compounded daily
- High Apple Store ratings
Cons
- Excess transaction fee ($10 for each transaction over six per statement cycle)
- Low Google Play Store ratings
- No 24/7 or weekend customer service
Who should use it
If you don’t plan to make many withdrawals, Quontic’s money market account warrants a look. There is a $10 fee for every transaction and withdrawal exceeding the allowed six per statement cycle.
Connexus Credit Union Money Market Account
Best for those who want a credit union
APY
4.51%
Monthly maintenance fee
$0
Minimum deposit requirement
$1,000
4.7/5
Why we picked it
The only credit union on our list, Connexus serves residents of all 50 states, is NCUA-insured and has $5.5 billion in assets. Employees of dozens of companies are eligible to join Connexus, as are residents of many communities in the Midwest. If you’re not on one of those lists, you can join with a one-time $5 donation.
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The Connexus Money Market Account is best for those with large balances since the APY increases with balance tiers, topping out at 4.51% for balances of $1,000,000 or higher. You can take advantage of up to four fee-free withdrawals or transfers per month and dividends are compounded monthly.
Pros
- Access to 5,000-plus shared branches
- Access to 67,000-plus ATMs
- APY increases as balance does
Cons
- 4.51% APY limited to accounts with more than $1,000,000
- Minimum $1,000 opening deposit
- Dividends compounded monthly
Who should use it
This account is ideal for those who will carry a high balance and value in-person banking with credit union perks. Connexus belongs to the CO-OP Shared Branch network, whichgives members access to 5,000 shared branches nationwide.
UFB Direct Secure Money Market
Best for app ratings
APY
5.25%
Monthly maintenance fee
$0
Minimum deposit requirement
$0
4.7/5
Why we picked it
UFB Direct is an offshoot of Axos Bank, meaning deposits are FDIC-insured. Among its benefits, UFB Direct offers 24/7 customer service.
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UFB Direct offers a 5.25% APY on money market accounts, no matter what the balance is, and you will avoid monthly fees as long as you carry a balance of at least $5,000. If your balance is less than $5,000, you’ll be charged a $10 monthly fee.
Pros
- High 5.25% APY applies to all account balances
- Strong app ratings
- 24/7 account support
Cons
- $5,000 minimum monthly balance to waive maintenance fee
- $10 excess transaction fee
- No local branches
Who should use it
Anyone can benefit from this account, but those who maintain a minimum monthly balance of $5,000 have the most to gain because they can waive monthly maintenance fees.
ZYNLO Bank Money Market Account
Best for account insurance
APY
5.00%
Monthly maintenance fee
$0
Minimum deposit requirement
$10
4.5/5
Why we picked it
ZYNLO is an online bank, but deposits are FDIC-insured up to the standard $250,000 per depositor, per account category through PeoplesBank. Deposits over $250,000 are also fully insured with ZYNLO through the Depositors Insurance Fund.
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The ZYNLO Bank Money Market earns a solid 5.00% APY on accounts up to $250,000 (and 0.10% on balances over $250,000) and can be opened with a minimum deposit of $10, plus there are no account fees.
Pros
- High 5.00% APY
- No monthly maintenance fee
- Deposits insured beyond FDIC limits
Cons
- No check-writing privileges
- High APY good only on balances up to $250,000 (0.10% APY on balances over $250,000)
- Low Google Play Store ratings
Who should use it
With a high APY and minimal fees, just about anyone is a good fit for the ZYNLO Bank Money Market Account. Those with balances of $250,000 or more won’t earn an impressive APY, but they will be fully protected beyond the FDIC-insured amount.
Our picks at a glance
| APY | Monthly maintenance fee | Minimum deposit requirement | |
|---|---|---|---|
First Foundation Bank Online Money Market | 5.25% | $0 | $1,000 |
Ally Bank Money Market | 4.40% | $0 | $0 |
Discover Money Market Account | 4.25% | $0 | $2,500 |
iGObanking iGOmoneymarket | 5.05% | $0 | $25,000 |
Redneck Bank Mega Money Market | 5.05% | $0 | $500 |
EverBank Yield Pledge Money Market | 4.30% | $0 | $0 |
Quontic Money Market Account | 5.00% | $0 | $100 |
Connexus Credit Union Money Market Account | 4.76% | $0 | $1,000 |
UFB Direct Secure Money Market | 5.25% | $0 | $0 |
ZYNLO Bank Money Market Account | 5.00% | $0 | $10 |
What are money market accounts?
A money market account functions like a savings account. You deposit your money with a bank or credit union, and the financial institution will hold on to it until you need it.
But, money market accounts have some checking account traits, too. With some money market accounts, you can write checks and make withdrawals with your debit card at an ATM. Your bank or credit union might limit the number of transactions you can make by debit card, check or transfer.
Typically, you will earn more interest when your funds are in a money market account instead of a checking account or traditional savings account — or even some high-yield savings accounts. And because money market accounts are liquid assets, you can access your money immediately in an emergency without penalties.
Why money market rates matter
Anytime you’re putting money in a bank account, you’ll want to know how much you’ll earn in interest. The same is true with a money market account.
It pays to compare an account’s APY — annual percentage yield — from one bank to another because rates can vary widely. Use an online calculator to determine how much you will earn at the end of a 12-month span, for example, noting whether your dividends are compounded on a daily or monthly basis. Spend some time shopping around for the best money market rates.
Factors that influence money market rates
Money market account rates are guided by the benchmark short-term rates the Federal Reserve sets and overall economic conditions.
The Fed has raised rates 11 times since March 2022 in an effort to rein in inflation. That may be bad news for people who want a mortgage or a car loan and for those who carry credit card debt, but it’s good news for savers.
The higher the rate for borrowers, the higher the rate for savers.
Benefits of money market accounts
- High interest rates: Money market accounts typically earn more than traditional savings accounts.
- Liquid savings: You can access your savings in an emergency or for a large purchase in the future, but withdrawal limits may apply to your account.
- Low-risk investments: As with checking and savings accounts, FDIC-insured money market accounts are federally insured up to $250,000 per depositor, per insured bank for each account ownership category.
Choosing the best money market account
The best money market account is the one that best suits your needs, and you’ll want to consider a variety of factors before picking the final one. Some details to research include:
- Is a minimum deposit required?
- What is the APY?
- Does the account have monthly withdrawal restrictions?
- Will you be charged fees?
- Is your money insured by the Federal Deposit Insurance Corp. at a bank or the National Credit Union Administration at a credit union?
- How often are your dividends compounded?
- What does the customer service care look like at a particular bank or credit union?
Opening a money market account
After comparing your options and choosing a money market account, you’re ready to open your account. The exact steps will vary by financial institution, but here’s an overview of the general process:
Apply online, by phone or at a branch: Your application will require personal information, such as your name, birthdate, address and Social Security number. You’ll have to indicate whether you want to add a joint account owner and a beneficiary.
Complete verification requirements: You may have to provide copies of ID or other documents to confirm information in your application. A utility bill or lease, for instance, may be used to verify your name and address.
Fund your new account: When you open the account, you may have to make an initial deposit to meet a minimum funding requirement. This may also be necessary to access higher APY rates.
What are the best ways to use a money market account?
A money market account can be a good tool for growing your balance and working toward short-term savings goals, such as:
- Building an emergency fund: Experts recommend setting aside three to six months’ worth of living expenses.
- Saving for a down payment on a car or a home: If you’re saving for a big purchase, the interest you’ll earn on a money market account can add up quickly. When you’re ready to buy, you can withdraw funds without penalty.
- Paying for a vacation or wedding: Use a money market account to save gradually for a big trip or event.
Methodology
Our team of experts at CNN Underscored Money analyzed dozens of accounts from more than 30 financial institutions to determine the rankings for the best money market accounts. This included accounts from a mix of traditional banks, online banks and credit unions that are available nationally. We ranked each account on 13 data points across six categories.
Here are the categories we analyzed and how we weighted each:
APY (50%)
The amount of interest you earn on your savings is the most important part of choosing a money market account for many consumers, so we weighted this highest of any factor.
Fees (10%)
Fees are a critical factor to consider with your money market account because they can eat away at any interest earnings, especially if an account has a high monthly maintenance fee.
Customer experience (10%)
While you’ll likely deal with your bank less often with a money market account than you will with a checking account, it’s still important to have a bank that’s trustworthy and easy to reach when you need help.
Digital experience (10%)
You’ll want a bank with a usable app and plenty of online features so that it’s easy to bank from anywhere.
Minimums (10%)
A high minimum deposit makes a money market account less accessible, so we rewarded accounts that more people can use. We also rewarded accounts that don’t make you carry a minimum balance to avoid fees.
Access (10%)
Many people select a money market account for features like a debit card and check-writing privileges, giving them easier access to their funds.
We also considered several other factors like account features and tier structures to earn APY.
Frequently asked questions (FAQs)
The money market rate is simply the percentage of interest you earn on your account, while the APY is the total interest you get on your account in a year. APY takes into account not only interest but also the rate at which it compounds.
Consumers are accustomed to swiping their debit cards for gas, groceries, coffee — well, everything — to make withdrawals from their checking accounts. Your money market account could cap how many withdrawals you can make by debit card, check or electronic transfer. Additionally, money market accounts may have minimum opening deposit requirements, especially to earn the best money market account rates.
Money market accounts, like checking and savings accounts, are insured by either the FDIC or NCUA for as much as $250,000 per depositor, per insured bank or credit union, per ownership category. Before opening a money market account, verify that your account will be insured in case of a bank collapse. You can check coverage online at BankFind or ncua.gov.
If your bank has a local branch, you can withdraw money in person from a teller. You can also write a check, make an electronic transfer or get cash at a participating ATM.
A money market account is safe as long as you opened your account at a federally-insured bank or credit union.
As a financial expert with in-depth knowledge of various savings and investment products, I can provide valuable insights into the concepts discussed in the article about money market accounts. I have a comprehensive understanding of the factors that contribute to a well-rounded financial portfolio, including short-term stability and long-term growth.
The article highlights the importance of a diversified financial portfolio and introduces money market accounts as an asset worth considering. Money market accounts are presented as an option that can offer greater returns than traditional savings accounts without locking up funds for a fixed period. The key concepts and information covered in the article include:
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Variety of Savings and Investment Products: The article emphasizes the significance of having a diverse portfolio that includes various savings and investment products to achieve both short-term stability and long-term growth.
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Money Market Accounts: Money market accounts are introduced as an asset class suitable for inclusion in a well-rounded financial portfolio. These accounts are presented as offering higher returns than traditional savings accounts, making them valuable for short-term financial goals.
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Comparison of Interest Rates: The article advises readers to compare interest rates and annual percentage yields (APY) offered by different banks and credit unions before opening a money market account. It suggests that higher APY can contribute to faster growth of invested funds.
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Factors in Choosing a Money Market Account: The methodology employed by the team of experts at CNN Underscored Money is outlined. This includes the analysis of dozens of accounts from over 30 financial institutions, with an emphasis on APY as a crucial factor for selecting the best money market accounts.
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Top Money Market Accounts and Their Features: The article provides a list of recommended money market accounts along with their respective APY, monthly maintenance fees, and minimum deposit requirements. Each account is briefly reviewed, highlighting its pros and cons.
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Key Considerations for Choosing a Money Market Account: Readers are advised to consider factors such as minimum deposit requirements, APY, monthly withdrawal restrictions, fees, and the institution's credibility before selecting a money market account.
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Benefits of Money Market Accounts: The article outlines the benefits of money market accounts, including high interest rates, liquidity, and low-risk investments. It suggests that money market accounts offer a balance between earning interest and having immediate access to funds.
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Opening a Money Market Account: The general process of opening a money market account is explained, covering steps such as application, verification requirements, and initial deposit.
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Best Ways to Use a Money Market Account: The article provides insights into how individuals can effectively use money market accounts for purposes such as building an emergency fund, saving for a down payment, or covering expenses for a vacation or wedding.
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Methodology for Ranking Money Market Accounts: The methodology used by CNN Underscored Money to rank money market accounts is detailed. Factors such as APY, fees, customer experience, digital experience, minimums, and access are considered in the ranking process.
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Frequently Asked Questions (FAQs): Common questions related to money market accounts are addressed, including the difference between money market rate and APY, withdrawal limitations, insurance coverage, and the safety of money market accounts.
In conclusion, my expertise allows me to provide a thorough understanding of the concepts presented in the article, offering valuable insights into the world of money market accounts and their role in building a robust financial portfolio.
