Today’s money market account rate roundup: April 11, 2023 – USA TODAY Blueprint

Money market accounts (MMAs) are a good choice for savers seeking account flexibility in addition to potentially higher interest rates than those typically found offered by traditional savings accounts. Average MMA rates inched upward in recent weeks, according to Bankrate data, offering decent yields to savers wanting a balance between liquidity and competitive returns.

Money market accounts currently average an APY of 0.49%, per Bankrate data, a one basis point increase from both one week ago and last month.

The highest rate in Bankrate’s dataset today has slipped since last week, falling to 4.55% from 4.65%. But you can still find good deals. 

If you were to invest $10,000 into an MMA with a 4.55% interest rate that compounds daily, you would earn approximately $465 in interest over a year, assuming no withdrawals or additional contributions are made.

Money market account rates usually offer higher yields than what you’ll find on savings accounts, especially those offered at brick-and-mortar banks. To be sure, MMAs often require a higher minimum deposit or balance, but banks and financial institutions typically reward clients for maintaining larger balances with higher rates.

Currently, the average rate on an MMA in Bankrate’s dataset stands at 0.49%, while the average rate you’ll find on a savings account with a $10,000 balance is 0.25%. 

However the top rate for MMAs dropped 10 basis points to 4.55% APY since yesterday, and is nine basis points lower than the highest savings account yield, according to Bankrate. 

Keep in mind that savings accounts are better suited to achieve a particular goal, such as maintaining an emergency fund or amassing a down payment on a home. By placing your funds in a high-yield savings account, not only will you earn interest, but you’ll also be less inclined to spend the money.

Think of a money market account as a mixture between a savings and checking account, often offering competitive interest rates and typically requiring a higher minimum balance. You can enjoy the perks of a high-yield savings account while having access to a debit card and check-writing, all with FDIC insurance up to $250,000. Though not designed for everyday spending, these accounts provide some flexibility with limited transactions.

If you’ve discovered a money market account that suits your needs, the next step is to open the account. Depending on the bank, you might be able to do this online. You’ll need to provide some basic information, such as your name, address, date of birth, Social Security number and phone number. Additionally, you’ll need to supply the account number and routing number of the bank you intend to use for your initial deposit if you’re funding a new money market savings account online.

Once your account is opened and funded, you can manage it just like any other bank account. This includes regularly reviewing your statements or account activity, setting up transaction alerts and linking it to your other bank accounts for seamless transfers.

Fees associated with money market accounts can vary depending on the financial institution. Some banks or credit unions may charge monthly maintenance fees, which can sometimes be waived if you maintain a certain minimum balance. 

Others may impose fees for excess transactions, as MMAs are subject to federal regulations limiting the number of certain types of transactions (such as transfers and withdrawals) to six per month. It’s essential to review the account terms and fee structures before opening a money market account to ensure you’re getting the best possible deal for your financial situation.