Why money market account

The money we make helps us give you access to free credit scores and reports and helps us create our other great tools and educational materials. Compensation may factor into how and where products appear on our platform and in what order. But since we generally make money when you find an offer you like and get, we try to show you offers we think are a good match for you.

That's why we provide features like your Approval Odds and savings estimates. Of course, the offers on our platform don't represent all financial products out there, but our goal is to show you as many great options as we can. And it almost always offers higher-than-usual interest rates as an annual percentage yield than savings and checking accounts. The downside is that with a money market account, you only get six transactions transfers or withdrawals per month, or per account cycle of at least four weeks.

This is because of Regulation D, a federal law that limits transfers and withdrawals from money market accounts. A transaction could mean writing a check, moving money from one account to another, or using a debit card to make a purchase. If you go beyond the transaction limit, you may get hit with a fee. Money market accounts tend to have higher interest rates than checking or savings accounts.

LendingClub High-Yield Savings. APY 0. Discover Bank Online Savings. Cash management accounts are typically offered by non-bank financial institutions. Wealthfront Cash Account. CDs certificate of deposit are a type of savings account with a fixed rate and term, and usually have higher interest rates than regular savings accounts.

Capital One CD. APY 1. Checking accounts are used for day-to-day cash deposits and withdrawals. Chime Spending Account. One Spend. Citi Priority Checking. LendingClub Rewards Checking. Quontic Money Market Account. How to choose a money market account. Money market accounts vs. Type of account. How is the interest rate? Why open this account? Money market account. Competitive with savings accounts. Savings account. Certificates of deposit CDs. On a similar note Dive even deeper in Banking.

And we prioritized money market accounts offering check-writing and debit card privileges. We also considered whether there were complex tier structures or requirements to earn the APY or other stipulations to earn the APY.

To appear on this list, the money market account must be nationally available. Because they have lower overhead costs, many online banks pay higher interest rates than traditional banks. When researching money market accounts, pay attention not only to the annual percentage yield APY , but also to the minimum deposit requirements, minimum balance requirements and any associated fees. Money market accounts usually require a higher initial deposit and may also have minimum balance requirements to earn the APY.

Money market accounts are interest-bearing savings accounts through financial institutions, while money market mutual funds are low-risk investment funds available through brokers. A money market account is FDIC insured, but a money market mutual fund is not. The NCUA provides similar coverage for all federal, and most state-chartered, credit unions. No, money market accounts come with variable rates that can change at any time. He has more than a decade of experience as personal finance editor, writer and content strategist.

Select Region. United States. United Kingdom. All ratings are determined solely by our editorial team. Mitch Strohm. Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations. Read more. Best Ofs. Money Market Account Promotions for Annual percentage yields APYs and account details are accurate as of Oct. Our ratings take into account a product's APYs, fees, minimums and other category-specific attributes.

Annual Percentage Yield 0. Why We Picked It. Details Interest is compounded daily and credited monthly. No out-of-network ATM fee reimbursement No physical branch locations. Details The yields earned on credit union accounts are referred to as dividends rather than interest.

Competitive to very competitive tiered interest rate structure Offers check-writing privileges Relatively low minimum deposit requirement. Requires an active Connexus checking account Membership is required Dividends compounded monthly Minimum balance requirement to earn interest.

Other banks and credit unions offer higher rates May make only six debit card transactions per month. Details Interest on Sallie Mae money market accounts is compounded daily and paid monthly. Details Interest is compounded and credited monthly. Steep initial deposit requirement High excessive transaction fee. Northpointe Bank also offers online access and a highly rated mobile banking app. Details Interest is calculated on a daily basis and credited monthly.

Highly rated mobile app Low minimum deposit requirement No monthly fees. Other banks and credit unions offer a higher APY Higher minimum balance requirement to earn interest. Steep overdraft fees No debit card or check-writing privileges.

One of the most important aspects of a money market account is its APY. Look for an account that offers a competitive APY while meeting your other needs. Watch out for monthly fees , excessive transaction fees and other fees that can eat into your returns.

Minimum deposit and balance requirements vary by institution. Generally, lower minimum requirements make it easier to maintain the account. Find an account with minimums that you can afford. Customer experience. Digital banking. Consider the online and mobile banking features you use most often. Then look for accounts at banks and credit unions that meet or exceed those expectations.