Cash market accounts (MMAs) generally is a good spot to retailer your money when you’re on the lookout for a comparatively excessive rate of interest together with liquidity and adaptability.
In contrast to conventional financial savings accounts, MMAs sometimes supply higher returns, they usually can also present check-writing privileges and debit card entry. This makes these accounts excellent for holding long-term financial savings that you simply need to develop over time, however can nonetheless entry when wanted for sure purchases or payments.
Regardless that charges have been falling over the previous a number of months, it is nonetheless doable to seek out cash market accounts that pay greater than 4% APY.
Here’s a have a look at a few of immediately’s greatest cash market account charges:
Thinking about incomes the absolute best rate of interest in your financial savings stability? Here’s a have a look at a few of the greatest financial savings and cash market account charges out there immediately from our verified companions.
Cash market account charges have fluctuated considerably in recent times, largely because of modifications within the Federal Reserve’s goal rate of interest.
Within the wake of the 2008 monetary disaster, for instance, rates of interest have been stored extraordinarily low to stimulate the financial system. The Fed slashed the federal funds charge to close zero, which led to very low MMA charges. Throughout this time, cash market account charges have been sometimes round 0.10% to 0.50%, with many accounts providing charges on the decrease finish of that vary.
Finally, the Fed started elevating rates of interest steadily because the financial system improved. This led to increased yields on financial savings merchandise, together with MMAs. Nonetheless, in 2020, the COVID-19 pandemic led to a short however sharp recession, and the Fed as soon as once more minimize its benchmark charge to close zero to fight the financial fallout. This resulted in a pointy decline in MMA charges.
However beginning in 2022, the Fed launched into a sequence of aggressive rate of interest hikes to fight inflation. This led to traditionally excessive deposit charges throughout the board. By late 2023, cash market account charges had risen considerably, with many accounts providing 4.00% or increased. Nonetheless, the Fed lastly started chopping charges in late 2024.
As of 2025, MMA charges stay excessive by historic requirements, although they’ve begun a downward trajectory following the Fed’s most up-to-date charge cuts. As we speak, on-line banks and credit score unions have a tendency to supply the very best charges.
When evaluating cash market accounts, it is essential to look past simply the rate of interest. Different components, corresponding to minimal stability necessities, charges, and withdrawal limits, can affect the full worth you get from the account.
For instance, it is common for cash market accounts to require a big minimal stability with the intention to earn the very best marketed charge — as a lot as $5,000 or extra in some instances. Different accounts might cost month-to-month upkeep charges that may eat into your curiosity earnings.
Nonetheless, there are a number of MMAs out there that supply aggressive charges with none stability necessities, charges, or different restrictions. That is why it is essential to buy round and examine accounts earlier than making a call.
Moreover, make sure that the account you select is insured by the Federal Deposit Insurance coverage Company (FDIC) or the Nationwide Credit score Union Administration (NCUA), which ensures deposits as much as $250,000 per establishment, per depositor. Most cash market accounts are federally insured, however it’s essential to double-check within the uncommon case the monetary insitution fails.
Learn extra: Cash market account vs. high-yield financial savings account: Which is greatest for you?
The nationwide common rate of interest for cash market accounts is simply 0.64%, in keeping with the FDIC. Nonetheless, the very best cash market account charges typically pay round 4% to 4.50% APY — just like the charges provided on high-yield financial savings accounts.
The quantity you’ll earn on $50,000 in a cash market account is dependent upon the annual proportion charge (APY) and the time interval you permit the cash within the account. For instance, when you deposit $50,000 right into a cash market account that pays 4.5% APY and left it in your account for one yr, you’d earn $2,303 in curiosity.
There are presently no cash market accounts that pay 5% APY. Nonetheless, some high-yield financial savings accounts from on-line banks do. You may also verify together with your native financial institution or credit score union to seek out out if they provide a 5% APY account that matches your wants.