Best Money Market Account Rates December 2023
Updated December 19, 2023
Money market accounts (MMAs) are a type of savings account bringing together the interest rates of a savings account and the check-writing capabilities of a checking account. In an environment of rising interest rates, you may be interested in moving your cash to an account with the best money market account interest rates available. Here’s a look at the best money market account rates for July 2023 to help you on your quest to get the best return on your cash while maintaining FDIC insurance coverage.
Best money market account rates compared 2023
To help you find the best money market account rates for November 2023, our team looked at traditional brick-and-mortar banks, online-only banks, and credit unions. In addition to interest rates, it’s important to consider any fees associated with the account to ensure you don’t lose a big chunk of your earned interest.
| Name | Best for | APY* | Min deposit | Monthly fee |
|---|---|---|---|---|
| Quontic Money Market Account | Best overall | 5.00%* | $100 | None |
| UFB Priority Money Market Account | Balances of $5,000 or above | Up to 5.25%* | None | No fee with a balance of $5,000 or more, otherwise $10 per month |
| U.S. Bank Elite Money Market Account | In-person banking | 4.50%*† | $100 | None with a balance of $10,000 or above or when you have a linked U.S. Bank Smartly Checking account, otherwise $10 per month |
| CIT Bank Money Market | No monthly fees | 1.55%* | $100 | None |
| VirtualBank eMoney Market Account | High interest rate with a low minimum balance requirement | 5.00%* | $100 | None with a balance of $100 or above, otherwise $5 per month |
| Connexus Credit Union High Yield Money Market Account | Best for high net-worth individuals | 4.76%* | $1,000,000 | None with a $100 minimum balance and at least one transaction per 12 months, otherwise $5 per month |
†Only new account clients with balances of $25,000+ earn the advertised 4.50% APY rate for the Elite Money Market Account
Our recommendations for the best MMA
Best overall: Quontic Money Market Account
Quontic MMA
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Quontic MMA
APY*5.00%Min. deposit$100Monthly fee$0
Our pick for the best overall money market account is the Money Market Account from Quontic. Quontic is a full-service, online bank with FDIC-insured accounts. As of this writing, the account features an impressive 4.75% APY interest rate with no monthly fees and a $100 opening balance requirement. Interest compounds daily and is paid to account holders monthly.
Unlike many competing money market accounts, users earn the best interest rate on all balances and don’t have to pay any monthly fees if their balance dips below a specific minimum. It’s an excellent money market account for typical savings needs that’s tough to beat.
While it’s not the best-known name in banking, Quontic offers innovative features, including cryptocurrency rewards and a digital branch in the metaverse.
Balances of $5,000 or above: UFB Premier Money Market Account
If you’re looking to eke out a few more basis points (a basis point is finance jargon for 0.01%), the UFB Premier Money Market Account pays an impressive rate. The interest rate applies to all balances, though you’ll need to maintain a balance of at least $5,000 at all times to avoid a $10 monthly maintenance fee.
UFB Direct is an online bank featuring a unique insurance product called InsureGuard+. With InsureGuard+, FDIC insured is possible for up to $150 million with a multi-bank partnership where balances are held across multiple institutions.
In-person banking: U.S. Bank Elite Money Market Account
U.S. Bank Elite Money Market Account
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U.S. Bank Elite Money Market Account
APY*4.50%Min. deposit$100Monthly fee$0
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Treat yourself to extra savings when you open a U.S. Bank Elite Money Market account. Benefits include:
- 4.50% Annual Percentage Yield (APY) on balances of $25,000+ for new Elite Money Market account clients.
- Quick and easy online application and funding.
- No ATM transaction fees at U.S. Bank ATMs.
- Set custom alerts for important account activity.
- Bank when, where and how you want with the U.S. Bank Mobile App.
- Member FDIC.
Some households prefer the in-person touch of walking into a bank branch and working with a human banker. If that sounds like you, the U.S. Bank Elite Money Market Account could be ideal. The account has a high interest rate. However, you must jump through a few hoops to qualify for the best rate and avoid monthly fees. U.S. Bank is one of the biggest banks nationwide, with over 2,200 branch locations.
Here’s a simplified list of the various interest rate tiers U.S. Bank offers for the Elite Money Market Account:
| Balance | Annual Percentage Yield (APY) |
|---|---|
| $0 to $24,999.99 | 0.01% |
| $25,000+ | Up to 4.50% |
If you hold less than $25,000, the interest rate is about the worst you can find. Only new account clients with balances of $25,000+ earn the top advertised 4.50% APY interest rate. And unless you maintain at least $10,000 in the account or have a linked U.S. Bank Smartly Checking account, you must pay a $10 monthly fee. Due to the strict balance requirements, the account isn’t right for everyone.
No monthly fees: CIT Bank Money Market
CIT Bank MMA
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CIT Bank MMA
APY*1.55%Min. deposit$100Monthly fee$0
The CIT Bank Money Market account doesn’t have the best interest rate but offers accounts with no ongoing minimum balance requirements and no monthly service fees. Its current 1.55% APY is well over the national average. If you’re looking to avoid fees and are unsure of your ability to maintain a specific balance, the CIT Bank Money Market account is worth considering.
CIT Bank is a division of First-Citizens Bank & Trust, one of the largest banks in the United States, which recently made headlines for its acquisition of failed Silicon Valley Bank (SBV), making it the 16th largest bank in the country. CIT Bank remains a full-service bank with checking, savings, and mortgage lending products.
High interest rate with a low minimum balance requirement: VirtualBank eMoney Market Account
VirtualBank is an online-only bank offering an impressive 5.00% on all balances. To qualify, you must maintain a $100 minimum balance, a relatively low hurdle to avoid fees and earn top-tier interest rates. Otherwise, it’s a fairly straightforward online money market account.
VirtualBank accounts are FDIC-insured to applicable limits, currently $250,000 for individual accounts or $500,000 for joint accounts, per depositor per institution. As with other money market accounts, rates can change at any time without notice.
Best for high net worth individuals: Connexus Credit Union High Yield Money Market Account
Credit Unions are nonprofit financial institutions and often offer more favorable interest rates and fees than traditional, for-profit banks. The Connexus Money Market Account pays varying interest rates on Money Market Account balances up to 4.76% APY. But you’ll need to maintain a balance of at least $1 million to get that rate. That’s a major hurdle that most people won’t meet.
Here’s a look at the rates you’ll get with lower balances:
| Balance | Interest Rate (APY) |
|---|---|
| $0 to $999.99 | 0.00% |
| $1,000 to $19,999.99 | 0.25% |
| $20,000 to $99,999.99 | 3.01% |
| $100,000 to $249,999.99 | 4.01% |
| $250,000 to $499,999.99 | 4.26% |
| $500,000 to $999,999.99 | 4.51% |
| $1 million or more | 4.76% |
To earn any interest, you’ll need at least $1,000. You’ll need at least $20,000 to earn a competitive rate. As a credit union, accounts are insured by the National Credit Union Association (NCUA), a government-backed institution that works similarly to the FDIC. With $1 million in an account, even a joint account, you will be above insurance limits, so carefully consider whether it makes more sense to split your account among different institutions so all of it will be insured.
Accounts require $1,000 to open, and you must maintain a minimum $1,000 daily balance to earn interest. An inactivity fee of $5 per month applies to accounts with no activity in the prior 12 months.
How to choose a money market account
When picking a money market account, it’s important to look at several factors. Most important, consider the following rates, fees, and account features:
- Annual percentage yield: Annual percentage yield, commonly abbreviated as APY, measures how much you earn from your deposit. APY enables you to make an apples-to-apples comparison between accounts. A higher APY means you earn more interest.
- Minimum balance requirements: Depending on your bank or credit union, you may find a minimum opening balance requirement and a minimum balance requirement to avoid monthly recurring fees. Every dollar in fees takes away from your earnings.
- Other fees: While less typical of money market accounts, some fees apply to less common activities. Before signing up for any financial account, thoroughly review the fee schedule so you don’t run into any surprises.
- Convenience for your banking preferences: If you only want a bank with physical branch locations nearby, membership in the Zelle network for free, instant transfers, or any other specific preferences, you may have to shop around to find the right account with a combination of features ideal for your needs.
You may have found a winner if you find an account that meets your requirements given the above criteria.
Frequently asked questions (FAQs)
You may encounter these common questions when shopping for a money market account.
Are money market accounts a good investment?
Money market accounts are a form of government-insured savings account. With a balance of up to $250,000 for individual accounts or $500,000 for joint accounts, you can save effectively risk-free. Comparing your interest rate and risk to other potential investments, you can decide if a money market account is a good investment vehicle for your goals.
Alternatives to MMAs
If you don’t want to save with a money market account, these alternatives may be a good option:
- High-yield savings account: High-yield savings accounts often feature among the top interest rates at a bank or credit union. They typically don’t have the check-writing features of a money market account.
- Certificate of deposit (CD): Certificates of deposit offer a fixed interest rate for a specific period. You may be able to lock in a higher interest rate than other savings products, but you’ll generally have to pay a penalty if you need to access funds before the maturity date.
Money market accounts vs. savings accounts
Money market accounts are a form of savings account, typically including a checkbook and other convenient features. Traditional savings accounts don’t offer check writing. Many savings and money market accounts offer similar features, such as FDIC or NCUA insurance and a limit of six monthly withdrawals. Note however, that limiting withdrawals to six is no longer mandated. Regulation D, the federal rule that required this, was withdrawn by the Federal Reserve Board in 2020. You can find accounts that won’t limit how often you can take out funds.
Are money market account rates higher?
Money market account interest rates may be higher than traditional savings accounts, but not always. You can use APY to compare the return from either account.
Are MMAs taxed?
The IRS considers interest earned from money market accounts taxable income in most situations. If you’re concerned about taxes from your MMA, consult with a trusted tax professional or Internal Revenue Service resources.
*Rates current as of October 1st, 2023. Check with the financial institution to confirm current rates.