The 10 best money market accounts of January 2025

You’ve probably heard that cash is king right now. But where can you stash your cash, earn a great rate, and avoid early withdrawal penalties if you want to access your money? Consider getting a money market account, which is a unique combination of a checking and savings account. Currently, some of the best money market accounts offer annual percentage yields (APYs) as high as 4.01%%. 

Why we picked it

When you opt for an MMA with First Foundation, you’ll get an APY rate of 4.75%. However, to open an account, you’ll need to have a nest egg already built up: the minimum opening deposit is $1000, and the money cannot come from an account you’ve already got open with First Foundation Bank. Whenever you’re ready to access the money in your account, you can do so with a debit card, available by request, or checks.

Unlike many major banks, First Foundation Bank doesn’t run credit checks for you to open an MMA. This means if other banks have declined you, you have a good chance for approval. Once you’ve been approved, you can add beneficiaries or a joint signer. You cannot, however, have the name in a trust.

As soon as you make a deposit, your money begins to earn interest. This interest compounds daily and will post at the end of the month.

Learn more: Read our First Foundation Bank review

More rates and products from First Foundation Bank

Aside from MMAs, First Foundation offers CDs, checking, and savings accounts.

Savings	Top APY: 4.90%
Checking	Up to 0.05% APY
CDs	Top APY: 5.00%

Best money market account for balances below $100,000: Redneck Bank

Redneck Bank is the online banking division of All America Bank—a bank first established in Oklahoma in 1969. Its motto is “where bankin’s funner,” and its website features farm animals, complete with a housefly that moves across the page as you navigate the site.

Why we picked it

There’s a saying that you shouldn’t be all things to all people, and Redneck Bank has certainly found its niche. Its brand is kitschy and more than a little redneck. On its Mega Money Market sales page, you can see an animated squirrel mowing a lawn of dollar bills as it pushes the lawnmower across the page, complete with sound effects. 

In a field where banking is filled with blue-and-white, early-internet-style websites, Redneck Bank’s vibrant and playful approach brings a refreshing change. Its debit card has a goat, a squirrel holding a fishing pole, and a pig, and you can use these at ATMs worldwide.

Although this account requires at least $500 to open, its other features may make it worth the trade-off. The account comes with a high 4.4% APY, which is among the top on our list. In addition, you won’t pay any maintenance fees.

Some of the other notable benefits of this account include a Mastercard debit card, checks, and up to six monthly withdrawals. If you need more than six monthly withdrawals, there’s a $5 fee per withdrawal.

Learn more: Read our review of Redneck Bank

More rates and products from Redneck Bank

Earn 5% APY on balances up to $15,000 and earn 0.50% APY on amounts over that. You must make 10 debit card transactions each month and receive e-statements to qualify for its top APY.

Redneck Rewards Checking Account

Minimum opening deposit: $500 Top APY: 5.00% ATM fee reimbursement: $25 on foreign ATMs

Best money market account for a high APY: Zynlo Bank

Zynlo is a digital bank that allows customers to manage their money from anywhere. It’s backed by Massachusetts-based Peoples Bank and offers three products: a savings account, checking account, and MMA.

Why we picked it

The Zynlo MMA made our list because it had a high 5% APY, $10 minimum deposit, and no monthly maintenance fees. Another notable benefit of this account is that there are no monthly withdrawal limits, unlike some of the other banks on our list. The one drawback? Zynlo doesn’t offer check or debit card access with its MMAs. 

Despite this restriction, its high-yield APY significantly outperforms the national average, which helps your money grow faster. Because there is no minimum balance requirement, you can start earning more on your money, even if it’s as little as $10. 

There are no fees and no penalties, either, which gives you the freedom to manage your money without worrying about added costs.

Learn more: Read our Zynlo Bank review

More rates and products from Zynlo Bank

Zynlo Bank has checking, savings, and MMAs.

Checking	2.00% APY
Savings	5% APY

Best money market account for savers who want 24/7 customer service: Ally Bank

Ally Bank is an online-only bank that offers all the benefits of a traditional big bank—like access to various products and a variety of customer service options. Bonus: Ally has 24/7 customer service and you can contact them via phone, email, and chat.

Why we picked it

Ally Bank’s MMA has a 3.8% APY and no minimum opening deposit or monthly fees. You’ll earn this rate no matter the balance in your account, which is an unusual feature for an MMA. These features make this MMA a great option for those just starting to build their savings. You’ll also have plenty of access to your funds when banking with Ally—you’ll get checks and a debit card with your account. 

You can open your Ally Bank MMA account in the name of a trust, which not all banks allow. You’ll receive 24/7 support via phone, chat, or email. This is handy if you travel internationally frequently, as there’s nothing worse than having an issue with your account while overseas and having to wait until the middle of the night to contact your bank during American business hours.   

Use any Allpoint ATM—there are 43,000-plus of them—and they’ll reimburse up to $10 for each statement cycle at other ATMs. You won’t pay any monthly fees, nor do you have a minimum balance. With its mobile app, you can make deposits on the go with Ally eCheck Deposit.

Learn more: Read our review of Ally Bank

More rates and products from Ally Bank

Each of Ally Bank’s accounts is online as it has no physical locations. It offers checking, savings, and credit cards.

Checking	Up to 0.25% APY
Savings	Up to 3.8% APY
CDs	Up to 4.10% APY
Credit cards	Rates vary, and you must receive an offer to apply for a credit card

Best money market account for no minimums: Vio Bank

Vio Bank is the online-only division of MidFirst Bank, the largest privately owned bank in the US. It’s headquartered in Oklahoma City and has several physical branches in Oklahoma and neighboring states, while servicing more than a million accounts to customers nationwide.

Why we picked it

With a 4.66% APY, no monthly fees, and easy online access to funds, Vio Bank’s MMA could be a convenient choice for many. The institution states that it regularly assesses the top rates in the nation to ensure that it stays competitive. With $0 required to earn interest, you won’t have to worry about maintaining a certain amount in the account.

For customer service, Vio can be reached by phone Monday through Friday from 7 a.m. to 9 p.m., Saturday from 8 a.m. to 6 p.m., and Sunday from 12 to 4 p.m. Central Time. It also offers live chat support.

More rates and products from Vio Bank

In addition to its MMA, Vio Bank offers an online savings account and CDs with a wide variety of term lengths.

Online Savings Account	1.10% APY on all balances$100 minimum deposit to openNo monthly maintenance fee
CDs	$500 minimum deposit to openTerm lengths from 6 months to 10 yearsAPYs ranging from 2.75% to 4.30%

Learn more: Read our Vio Bank review

Best money market account for unlimited ATM withdrawals: Northern Bank Direct

Northern Bank Direct is the online-only branch of Northern Bank, an institution serving the financial needs of New England since 1960. As a member of the SUM network, customers have access to thousands of fee-free ATMs.

Why we picked it

While the Northern Bank Direct Money Market Account requires a much higher minimum opening deposit of $5000, the 4.75% APY could make that investment worth it for anyone willing to keep at least $5,000 in the account. There’s also no limit to the number of withdrawals you can make and access to surcharge-free ATMs through the SUM network.

With online and mobile banking, you can manage your money from anywhere. You won’t pay any monthly service charges, so your money can grow without added fees eating away at it. These great interest rates and lack of maintenance fees make up for its high minimum opening deposit requirement.

Setting up an account takes a few minutes, and you’ll need to provide the standard information asked by all financial institutions, such as your name, citizenship, Social Security number, and ID. Once your account is opened, aside from accessing your account via your web browser, you will also have access to an iOS and Android app for banking on the go.

Learn more: Read our Northern Bank Direct review

More rates and products from Northern Bank Direct

Northern Bank Direct offers its customers CDs, 1035 exchanges, and health savings accounts in addition to its MMAs.

CDs	Rates up to 4.00% APY

Best money market account for a local bank feel: All America Bank

All America Bank is an Oklahoma-based institution with a robust number of online offerings nationwide, including personal and business banking and loans. It’s the same bank that offers you Redneck Bank, which is its online division.

Why we picked it

The All America Bank Mega Money Market account offers a generous 4.4% APY with no minimums or monthly fees. The account allows for six fee-free withdrawals or transfers per billing cycle and it comes with a debit card for easy access to your funds.

You can also make mobile deposits, set up direct deposit, and make transfers bank-to-bank and person-to-person. Should you overdraft, your account might be eligible for Overdraft Privilege. This will cover overdrafts of up to $500, although it will cost $25 per item, and specific conditions must be met to qualify. 

You can set up bill pay on your MMA, which allows 10 free online bill pays per month. It will cost you 50 cents for each additional bill pay. E-statements are free; however, if you opt for paper statements, it’s $3 per month. 

Learn more: Read our All America Bank review

More rates and products from All America Bank

All America Bank offers checking, savings, CDs, IRAs, and credit cards.

Checking accounts	Up to 5.15% APY
Savings accounts	2.00% APY
CDs	Up to 4.75% APY
Credit cards	Introductory rates as low as 2.90% APR for the first six months

Best money market account for easy access to funds: Everbank

Founded in 1998, EverBank, formerly known as TIAA Bank, is a Jacksonville, Florida-based bank offering CDs, high-yield savings accounts, checking accounts, and more. It sponsors EverBank Stadium, where the NFL’s Jacksonville Jaguars play.

Why we picked it

EverBank’s MMA offers a solid 4.3% introductory one-year APY for first-time money market clients, regardless of how much you have to invest. After the first year, you’ll get a 3.75% APY for balances below $50,000 and a higher rate if you maintain a larger balance. You’ll get a debit card and checks, which means accessing your money is simple.  

If you have a lot to deposit, you’ll earn better rates. For deposits of $50,000 to $99,999.99, you can earn 4.05% APY, while balances of $100,000 and above receive an impressive 4.30% APY. This tiered structure rewards higher balances and ensures that your money works harder for you.

There is no minimum opening deposit, however, so if you only have a few dollars to deposit, you’ll still earn a great rate so your money can grow. You’ll also still get bill pay, mobile check deposits, and ATM fee reimbursements up to $15 monthly.

Learn more: Read our EverBank review

More rates and products from EverBank

As a traditional bank, EverBank offers checking, savings, CDs, and MMAs.

Checking	0.40% APY
Savings	4.75% APY
CDs	Up to 4.00% APY

Current news on MMA rates

With inflation cooling, the Federal Reserve cut the interest rate by 50 basis points at its meeting on September 18th, 2024, and it has hinted at further rate drops in the near future.

The Fed’s decision to begin cutting rates can indirectly lower the yields of money market accounts, as these accounts often track short-term interest rates. Monitor how these changes may affect your potential returns for MMAs. While not all financial institutions adjust their rates immediately after a Fed rate cut, it’s worth comparing offers among online and traditional banks to find the best rate available.

What is a money market account?

A money market account is like a combination between a checking account and a savings account. These accounts typically offer higher APYs than checking accounts and, in many cases, identical features—check-writing abilities, debit card access, and the ability to make withdrawals and deposits via ATM. 

However, unlike checking accounts, there may be a limit on the number of withdrawals—usually six—made from your money market account each month. And not all money market accounts come with all the features mentioned above.

It’s also not unusual for money market accounts to be tiered, offering higher APYs on higher balances. There may also be a minimum opening deposit or a balance you must maintain to avoid paying maintenance fees.

Before opening a money market account, it’s essential to shop around and research APYs, fees, and other features to ensure you find the best account fit for your finances. 

Recent news that could impact your MMA APY

With inflation at 3.3% year-over-year, the Federal Reserve’s June 11-12, 2024, decision to maintain the federal funds rate of 5.25% to 5.5% is a cautious approach. This means your MMA APY rates may remain high for the time being, but once the Fed cuts rates, you can expect these MMA rates to decline as well.

Pros and cons of money market accounts

Money market accounts are useful financial tools, offering higher APYs than traditional checking or savings accounts. But it’s important to understand some of the pros and cons before opening one.   

Advantages of MMAs

One of the primary advantages of money market accounts is that they provide higher interest rates than other deposit accounts. 

While there may be a limit on the number of withdrawals you can make each month, your money is easily accessible—many money market accounts offer debit or ATM cards and check-writing access, so you can tap into your money when you need it.   

Disadvantages of MMAs

MMAs can be pricey, and you may need to have a certain amount of money saved up to open an account. Some financial institutions have minimum opening deposit requirements for MMAs, which can range from just a few dollars to thousands. 

Plus, after you open an account, there may be a minimum balance requirement you need to maintain as well. Some banks and credit unions charge a monthly maintenance fee just for having an account. However, that fee may be waived for some accounts if the customer meets a minimum balance requirement.

Lastly, some money market accounts limit customers to just six withdrawals per month. If you want unlimited access to your cash, a checking account could be a better option.

How to choose the best money market account

When deciding between money market accounts, you’ll want to consider various account features such as:

• Interest rate: A higher APY means your account will earn more interest annually. 
• Account minimums: Many financial institutions require a minimum deposit or balance to open an account and earn a certain APY. While some institutions offer accounts with minimums as low as $10, others impose larger sums to get started. You may face fees and penalties if your balance falls below the required minimum balance.
• Fees: Fees can eat into your balance, whether big or small. Before opening an account, read the fine print to determine if your account charges any monthly maintenance, withdrawal, or low-balance fees. You’ll also want to look for balance thresholds that might get these fees waived.
• Withdrawal rules: If you expect to make frequent withdrawals from your MMA, you’ll want to know if there’s a monthly cap. You’ll also want to know your options for accessing your funds, like whether you get a debit card or check-writing privileges.

Alternatives to money market accounts

Think of a money market as a hybrid between a savings account and a checking account: You can earn a solid interest rate on your savings and access your cash when needed. When deciding which deposit account is best for you—a savings account, CD, or checking account—you should consider your financial goals, how much liquidity you need, and whether you want a fixed or variable interest rate.

MMAs vs. savings accounts

There are many similarities between money market accounts and savings accounts: Both offer higher APYs than checking accounts, are covered FDIC or NCUA insurance, and typically have monthly withdrawal limits

However, there are some small differences between the two accounts. With a money market account, customers typically have easy access to cash via ATM, debit card, or checks. Yet with a savings account, customers are typically limited to accessing their cash via electronic transfer.   

MMAs vs. CDs

While money market accounts offer variable APYs, CDs provide a fixed interest rate when you lock up your money for a set amount of time, usually a few months or years. CDs, unlike money market accounts, offer no liquidity—if you need to access your cash before the CD’s term is up, you’ll have to pay an early withdrawal penalty which is worth a few months of interest.

Since CDs require you to tie your money up for a fixed period, these deposit accounts are best for a financial goal in the future such as saving up for a housing down payment. On the other hand, money market accounts can be a good place to store cash you need immediately like for an emergency fund.

MMAs vs. checking accounts

Checking accounts are typically used for everyday expenses like your credit card bill or rent payments. These accounts offer low variable interest rates as they’re not meant for long-term saving. You may be able to access your cash with an ATM or debit card, checks, and electronic transfer.

If you’re seeking a higher APY, a money market account offers higher interest rates than checking accounts. Customers, however, may be limited in the number of withdrawals they can make from their money market account.

Money market accounts vs money market mutual funds (MMMFs)

MMAs and MMMFs both have the goal of earning you interest, but they’re two different vehicles to do so. The former is a savings account offered by a credit union or bank while the other is an investment account offered by a financial institution. For this reason, an MMA is FDIC-insured up to $250,000, while the MMMF isn’t FDIC-insured and could lose money.

MMAs typically have restrictions on the number of transactions you can conduct per month, although they usually come with check writing and debit card capabilities. Meanwhile, MMMFs don’t allow check writing or debit card transactions, although you can often redeem your shares at any time.

Are money market accounts safe? 

Your money is safe in a money market account if your bank or credit union is insured by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA), respectively. These organizations insure your deposits of up to $250,000 per depositor, per account, per ownership category in the unlikely event of bank failure. You can check if your bank or credit union is covered by FDIC or NCUA insurance through their websites.

Are the best money market accounts insured?

Your money is safe in an MMA if your bank or credit union is insured by the FDIC or NCUA, respectively. These organizations insure your deposits of up to $250,000 per depositor, per account, per ownership category in the unlikely event of bank failure. You can check if your bank or credit union is covered by FDIC or NCUA insurance through their websites.

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Our methodology 

The Fortune Recommends^TM team has analyzed more than 40 banks and credit unions across the U.S. to compare and find its top picks available to you. All banks that made the cut are available no matter where you live in the U.S.

Here are the key elements we ranked each bank by:

• APY (50%): APY is the interest you earn on the balance you carry in your account; the higher the APY, the higher it likely will be on our list.
• Minimum opening or required deposit (15%): This is the minimum dollar amount you’ll need to invest to open an account. Banks that required little or no minimum deposit scored higher on our list.
• Minimum balance to receive the APY (5%): This is the minimum dollar amount you’ll need to keep in your account to earn its APY. Banks that required little or no minimum balance scored higher on our list.
• Maintenance fees (15%): Some banks charge fees to keep the account open, ranging from $0 to $20 monthly. These fees may be waived if customers maintain a certain minimum balance.
• Access to funds (10%): Banks will offer various ways to withdraw funds from your account (e.g., checks, debit cards, and ATM cards). We looked at whether banks offered debit cards and check writing privileges, with those offering both or one option higher than those with fewer options. 
• Customer service (5%): Being able to reach your bank in multiple ways (e.g., email, phone, chat support) is critical. We ranked places with more options higher than those with fewer options, with the most weight toward being able to reach the bank by phone.

Rates and fees are subject to change. All the accounts on this list are NCUA- or FDIC-insured.

Dig deeper: learn more about our banking methodology.

Frequently asked questions about MMAs

Do money market accounts have a fixed interest rate?

Money market accounts offer variable interest rates tied to the federal funds rate, or the interest rate set by the Federal Reserve. This means that the APY you receive on your account varies based on Fed policy.

Can you lose the money you invest in a money market account?

Money market accounts are considered deposit accounts, so they’re riskless as long as your bank or credit union has FDIC or NCUA insurance, which provides up to $250,000 of coverage.

Can you write checks from money market accounts? 

Many money market accounts offer check-writing privileges, although some financial institutions may charge an additional fee for ordering checks.

Do money market accounts come with debit cards? 

Many money market accounts offer debit cards, but not all do. Check with your financial institution to confirm that your MMA has a debit card.

Are money market accounts and money market funds the same? 

No. Money market accounts are deposit accounts offered by your bank or credit union that are liquid and federally insured. Money market funds are a type of mutual fund that invests in debt securities and may pay a small amount of interest on a monthly basis. These funds are not federally insured.

Are money market accounts taxed? 

Any interest earned on your money market account balance is considered taxable income and is reported to the IRS on Form 1099-INT.

What determines the APY on the money market account? 

Your individual bank or credit union determines money market account APYs and may fluctuate in response to macroeconomic changes, changes to the federal funds rate, and more.