Today’s Top Money Market Account Rates For January 7, 2025 — Rates Move Downward – Forbes Advisor – Technologist

January 7, 2025

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Current Money Market Rates

The current average money market rate is 0.55%, while the highest rate is up to 5.00%.

Here are today’s money market account rates:

MMA rates today

Source: Curinos. Average APY date accurate as of January 6, 2025.

Average Money Market Rates

How Does a Money Market Account Work?

Money market account are interest-bearing deposit accounts that work similarly to savings accounts. You deposit money whenever you have some to spare and it grows more interest the longer you leave it alone. These accounts are insured by the Federal Deposit Insurance Corp. (FDIC) for banks and the National Credit Union Administration (NCUA) for credit unions up to $250,000 per depositor. Money market accounts offer convenient fund accessibility, often including checks and debit cards, though you might be limited to six monthly transactions.

Compared to regular savings accounts, money market accounts usually offer higher interest rates. However, they tend to require higher minimum deposits and balances to earn these.

How To Open a Money Market Account

Before opening a money market account, look into at least a few options with different banks or credit unions. Compare minimum balance requirements, monthly fees, withdrawal limits and annual percentage yields (APYs) to choose the best fit. Also, check out the conditions to earn the highest interest rates.

You can typically apply for a money market account online or in person. You will need to provide personal information such as your name, employment status and income, address and Social Security number, and show a government-issued ID. Once you’re approved, you can make your initial deposit.

Money Market Account vs. Savings Account

Money market accounts act like a hybrid between savings accounts and a checking account.

Both MMAs and savings accounts:

Let you deposit funds as you please
Earn interest on your savings
Are highly liquid
Are safe deposit accounts
May have withdrawal restrictions, balance requirements and monthly fees.

Similar to checking accounts and unlike most savings, money market accounts:

Can come with debit cards, checks or both
Tend to have higher fees
Tend to have deposit and balance requirements

Frequently Asked Questions (FAQs)

How often do money market rates change?

Money market rates are variable and can change when economic conditions change, such as when the Federal Reserve alters interest rates or due to circumstances at a specific bank. There is no set schedule for when or by how much MMA rates change, so be on the lookout for notifications from your financial institution.

How are money market rates determined?

Banks set money market account rates. The specific rate offered by an institution reflects the general interest rate environment and the bank’s economics. For instance, a new online-only financial institution may offer a high rate to gain customers, whereas an established bank could count on generations of depositors.

How can I calculate interest on a money market account?

You can use a money market account calculator to see how much interest you’ll earn. The amount of interest you earn is determined by the principal amount you deposit, the interest rate offered by your bank and the amount of time you save.

About The Author

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Azeem Rajpoot, the author behind Technolo Gist, is a passionate tech enthusiast with a keen interest in exploring and sharing insights about the rapidly evolving world of technology. With a background in Technologist, Azeem brings a unique perspective to the blog, offering in-depth analyses, reviews, and thought-provoking articles. Committed to making technology accessible to all, Azeem strives to deliver content that not only keeps readers informed about the latest trends but also sparks curiosity and discussions. Follow Azeem on this exciting tech journey to stay updated and inspired.