Money market account rates today, November 7, 2024: Secure up to 5.00% APY before the next Fed rate cut

With interest rates starting to drop after the Fed’s recent tapering, it’s more important than ever to make sure you’re getting a competitive rate on your savings. Another option you may want to consider is a money market account (MMA).

MMA can provide competitive returns to facilitate rapid growth. Plus, you can access your money easily, as most money market accounts come with a debit card and/or paper checks.

However, not all banks offer high rates, which is why it’s important to shop around and find the most competitive rates available. Read on to learn more about where to find the best MMA deals right now.

From a historical perspective, money market account interest rates are very high. The average national interest rate for money market accounts is just 0.64%, according to the FDIC, but high-interest money market accounts often pay upwards of 4% APY or more — similar to the rates. which are offered with high yield storage accounts.

Here are some of the top MMA deals available today:

Check out our picks for the 10 best stock market accounts available today >>

In addition, the table below provides some of the best savings and money market rates available today from our verified partners.

After several years of near-zero interest rates, the Federal Reserve began raising the federal funds rate in 2022 to combat rapidly rising inflation. As a result, stock market interest rates rose, reaching a 15-year high.

However, as inflation cooled and the economy improved, the Fed cut its target rate by 50 basis points in September. And further rate cuts are expected after today’s meeting.

Although the federal funds rate does not directly affect deposit rates, they are related. So, when the Fed lowers its rate, money market rates end up falling again. That means now may be the last chance to take advantage of the stock market’s historically high rates.

Read more: Are money market accounts safe?

The requirements involved in opening a money market account vary by financial institution. However, if you are ready to open an account, you can follow these general steps:

• Search and compare reports: One of the most important factors to consider when shopping around for a money market account is the interest rate. Check out competitive interest rates, as this will directly affect your income. However, it’s also important to compare monthly maintenance fees, withdrawal limits, and minimum balance requirements as these can also affect your earnings.

• Choose a financial institution: You will need to decide whether you prefer a traditional bank, credit union or online bank. Remember that online banks tend to offer the highest interest rates, but credit unions can have more personal services. You should also ensure that the institution is insured by the FDIC (Federal Deposit Insurance Corporation) for banks or the NCUA (National Credit Union Administration) for credit unions to ensure that your funds are protected in the unlikely event that the institution fails. fail.

• Collect the necessary documents: You will need to provide government-issued ID such as a driver’s license, passport, or Social Security card. You should also be prepared to provide some personal information, including your address, phone number and date of birth. Some banks may require proof of address in the form of a utility bill, lease agreement, or other document.

• Fill out the application: Most financial institutions allow you to do this online, although you may prefer to visit a branch (if available) for your assistance.

• Amount in account: Most money market accounts have minimum deposit requirements that you need to meet. You can transfer money electronically from another bank account, mail a check, or deposit money directly at the branch, depending on the bank’s policies.

Read more: Money market account vs. money market fund: What’s the difference?