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An overview of money market accounts and rates

Understanding and comparing the money market rates starts with the basic knowledge and understanding of the money market account (MMA). An MMA is a type of savings account which puts a cap on the number of checks that you may withdraw from your account every month. The money market rate is the compound interest that you may earn on your balance and it is referred to as the annual percentage yield (APY).

Although the minimum balance and deposits that you need to maintain in an MMA are higher than in a regular savings account, the APY on an MMA is more than the rates offered on a traditional savings account.

Is an MMA suitable for you?
Not everyone prefers a money market account due to the restrictions associated with it. However, if you prefer occasional access to the account and seek a higher yield, the account is ideal for you. There are a few accounts which offer the best money market rates. However, do not make an application for opening a money market account simply based on the market rate offered. Make sure you understand the pros and cons of the account. As mentioned above, the account requires you to maintain a higher minimum balance and failure to do the same might lead to penalty fees.

Best money market accounts for 2018
Choose the best money market rates and an account which has a minimum balance requirement convenient for you to maintain. The rates on the account may vary from one bank to another. Moreover, there could be minor variations in the terms and conditions offered by the banks. Remember, the higher the APY, the better will be your earnings. This is because the interest gets compounded on a daily or a monthly basis and is usually credited to your account at the end of every quarter. Therefore, before you open a money market account, it is prudent to compare the rates and the requirement of minimum balance for the same.

As of 2018, the highest rate is offered by VirtualBank, which is 2.01% and its minimum balance requirement is $100. It is followed by the All America Bank, which has an APY of 2% and a minimum balance requirement of $500. At the same level is the Redneck Bank with an APY of 2% and a minimum balance requirement of $500. Remember that the money market rates are subject to change depending on a number of factors.

Disclaimer:

The information available on this website is a compilation of research, available data, expert advice, and statistics. However, the information in the articles may vary depending on what specific individuals or financial institutions will have to offer. The information on the website may not remain relevant due to changing financial scenarios; and so, we would like to inform readers that we are not accountable for varying opinions or inaccuracies. The ideas and suggestions covered on the website are solely those of the website teams, and it is recommended that advice from a financial professional be considered before making any decisions.