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The most productive cash market accounts (MMAs) offer high rates, minimal fees, and low minimum deposit requirements. Many also offer simple funds, allowing account holders to bill checks or make debit card purchases from the account. The right Marketplace account for you will depend on your monetary goals and the amount of money you are willing to deposit.
Our editors are committed to providing you with unbiased reviews and information. Our editorial content is influenced by advertisers. We use data-driven methodologies to compare monetary products and businesses, so that all are measured equally. You can read more about our editorial rules and our banking method for obtaining ratings below.
Here’s a list of the cash market accounts our experts have found, ranked from highest to lowest annual percentage yield (APY).
See below to learn more about why we chose the account, the pros and cons, and to access the bank’s reviews.
Annual Percentage Yields (APY) and Account Headlines are accurate as of June 6, 2024.
Our experts chose the Connexus Credit Union High Yield Money Market Account because it is a graduated rate account that will pay higher dividends for larger deposits and provides check writing privileges.
Why we love it
While the tiered APY makes for a more confusing earning design than some of the other accounts on our list, the rewards can be if you manage to overcome a few hurdles.
What we don’t like
The minimum deposit requirement can be difficult for some to meet, and if you don’t have at least $20,000 to save, you probably won’t earn much interest.
Who is it for?
Choose this account if you want to write checks and have at least $20,000 to save—the larger the balance, the higher the APY.
Savers earn 0. 25% APY for balances between $1,000 and $19,999. 99, 2. 41% APY for balances between $20,000 and $99,999. 99, 2. 66% APY for balances between $100,000 and $249,999. 99, 2. 91% APY for balances between $250,000 and $499. 999. 99, 3. 16% APY on balances between $500,000 and $999,999. 99. The highest tier will pay an APY of 3. 91%, but requires a giant balance of $1,000,000 or more.
While you will have to deposit at least $1000 to open an account, there is no penalty if your balance falls below $1000. Balances under $1000 are not eligible for dividends.
This account includes the ability to write checks. And Connexus offers 24/7 online and mobile banking features for your money.
In addition to the club’s normal organization and geographic categories, you can become a Connexus member by making a one-time $5 donation to the Connexus Association.
The returns earned on credit union accounts are called dividends rather than interest. Connexus Credit Union dividends are compounded and credited monthly. All members will be required to make a $5 deposit into a Connexus Credit Union savings account to identify their club before adding other account types. There is a $6 payment for certain types of transactions out of four depending on the period.
Our experts chose Quontic Bank’s cash market account because it features a competitive tiered interest rate design and comes with a debit card that allows donations to more than 90,000 ATMs nationwide.
Why we love it
This account requires a low minimum deposit of $100 to open the account and does not charge any monthly maintenance fees.
What we don’t like
If you want to make more than six transactions per cycle, you will be charged $10 per transaction that exceeds the limit.
For whom?
Check out this account if you need to earn interest while still using a debit card, as long as you don’t plan to use it more than six times a month.
Savers gain advantages from a favorable interest rate, regardless of the amount of cash in their accounts. The 5. 00% annual percentage yield applies to all balance levels, known as $0. 01 to $4999. 99, $5000. 00 to $149999. 99, and balances over $149999. 99.
You can choose to use a debit card with this cash market account. And Quontic has an extensive network of more than 90,000 ATMs nationwide. Please note that you are limited to six transactions per cycle – a $10 fee is charged for each transaction beyond six.
Customer service is available Monday through Friday via live chat, email, or phone. The bank also offers a popular mobile application.
Interest is compounded daily and credited monthly. There is a $10 transaction overage payment for certain types of transactions beyond six per cycle.
Our experts liked the Zynlo Bank Cash Market Account because all deposits with Zynlo are one hundred percent consistent with the insured penny. This means that no matter how much you deposit, your overall balance will be covered through insurance in the event of the bank failing. Deposits are insured through the Federal Deposit Insurance Corporation (FDIC) up to $250,000 consistent with the depositor for each account ownership category. Above this amount, deposits are insured through the Massachusetts-based Deposit Insurance Fund (DIF).
Why we love it
The Zynlo Bank Money Market account offers a competitive rate: 5. 00% APY on balances up to $250,000. Account balances over $250,000 earn 0. 10% APY. Plus, there are no monthly maintenance fees.
what we don’t like
For your funds, you’ll want to transfer them to a checking account, as this MMA doesn’t come with a debit card or checks.
Who is it for?
This account is ideal for those who want to earn interest and ensure complete coverage of their funds, even if their balance exceeds the usual insurance limit of $250,000.
You can open the account with $10 and earn the APY with a minimum balance of $0. 01.
Interest is capitalized daily and credited monthly. Existing APY is 5. 00% APY for balances up to $250,000. Account balances over $250,000 earn 0. 10% APY. You’re limited to making six transactions consistent with your account cycle, but Zynlo doesn’t charge fees for excess transactions.
Zynlo does not offer checking or debit cards with this account, but you can access your account online or through the bank’s mobile app. Customer service is available 24/7 by phone.
We chose First Internet Bank because its cash market account offers a tiered APY design that will pay a generous rate on all balances, making it ideal for building an emergency savings fund. Your monthly payment is waived on balances of $4,000 or more, and in cases of emergency. The budget tends to be large enough to exceed that minimum.
Why we love it
This full-service bank also offers competitive checking, savings, and CD accounts, so you can do all your banking in one place.
what we don’t like
Other cash market accounts don’t charge a monthly fee, so if your balance is at risk of falling below $4,000, it’s most productive to use them. Additionally, this account does not come with an ATM card, which can be a merit or demerit depending on your needs.
Who is it for?
Opt for this account if you have at least $4,000 to save and you prefer not to have an ATM card so you can avoid impulsive spending.
First Internet Bank Money Market Savings offers a competitive 3. 77% APY with a daily balance of $1 million or less or a 5. 48% APY with a daily balance over $1 million. There is a maintenance fee of $5 per month, but you can do this by maintaining an average daily balance of at least $4,000. Customers can open an account for $100, less than what other banks and credit unions charge.
To get a debit card or checks, you must open a separate checking account at First Internet Bank. There is no ATM network, but the bank offers up to $10 per month in additional ATM rebates.
Interest is compounded and credited monthly. There is a $5 transaction overage payment for certain types of transactions beyond six per cycle.
Our experts liked the Ally Bank Cash Market account because it will pay a competitive APY and makes your cash easily accessible. While some types of withdrawals and transfers are limited to six per cycle, you can make unlimited withdrawals at over 43,000 ATMs at no cost. nationwide surcharge.
Why we love it
Ally reimburses up to $10 on a cycle basis for fees charged through out-of-network U. S. ATMs.
what we don’t like
You are limited to 10 convenient withdrawals and transfers per month with this account. While Ally no longer charges more than the top transaction fees, it may close your account if you continually exceed this limit.
Who is it for?
This MMA is ideal for savers who use ATMs and either checks or debit cards.
Ally Bank will pay a competitive 4. 20% rate on all APY balance levels in your cash market account with no minimum deposit requirement. Account holders get popular checking and a debit card with this account.
Online-based Ally Bank offers 24/7 visits via phone, live chat, and email. It also gets top marks for visitor satisfaction.
Ally helps keep fees to a minimum by charging no fees for monthly maintenance, ACH transfers, incoming domestic or foreign wire transfers, cashier’s checks, or copies of online statements.
Interest is compounded and credited monthly. Ally recognizes 3 balance levels: less than $5000, $5000 to $24,999. 99, and $25,000 or more. All 3 tiers pay the same APY of the cash market account.
Our experts gave Sallie Mae Bank’s Cash Market Account a top score because savers can combine this competitive MMA with the bank’s SmartyPig Savings Account. The SmartyPig account comes with equipment to create and track progress toward express monetary goals, like an online piggy bank. The bank’s MMA allows consumers to earn maximum rate benefits on the savings they have already accumulated, and the SmartyPig account is helping them set and reach new savings milestones.
Why we love it
The combination of a higher APY with no monthly maintenance fees or minimum deposit requirements makes this account a clear winner.
what we don’t like
The bank’s mobile app may be easier to use.
Who is it for?
Consider Sallie Mae’s MMA if you’re using your savings to build. Savings team and competitive APY provide added motivation.
The Sallie Mae Bank Cash Market Account offers a competitive 4. 65% APY with no minimum deposit requirement and no monthly maintenance fees. The account does not come with a debit card, but account holders can write checks.
Money market account transfers out of the account to pay off loans at Sallie Mae are unlimited.
Interest on Sallie Mae cash market accounts is compounded and paid monthly.
Our experts chose EverBank’s Yield Pledge Cash Market Account because it promises that the interest rate you earn on your cash market account will be within 5% of “competing accounts. ” This is based on accounts from the 10 largest banks and secondhand retail stores in 10 major US markets.
Why we love it
EverBank’s Yield Pledge Money Market account will pay an introductory APY of 4. 30% for the first year on balances up to $250,000; Then the continuous rate of 4. 05% is applied and there is no monthly payment or minimum.
what we don’t like
There is a transaction fee of over $10, so this account is not suitable for spending.
For whom?
Check out EverBank’s Yield Pledge MMA if you want to take advantage of a generous promotional APY and prefer debit card and ATM access.
Interest is capitalized daily and credited monthly. EverBank charges $10 per transaction over the allowed limit of six per cycle. EverBank recognizes five balance levels: less than $10,000, between $10,000 and $24,999. 99, between $25,000 and $49,999. 99, between $50,000 and $99,999. 99, and $100,000 and above. The lower your balance level, the lower the APY you earn.
Vio Bank’s Cornerstone Money Market account is on our list because it generates one of the highest APYs available, and unlike many MMAs, it doesn’t come with an ATM or debit card. Vio does not have an ATM network nor can it factor checks. This might be a disadvantage for some, but the lack of quick access to budgeting may only be for savers who need to avoid impulse spending and unnecessary drain on savings.
Why we love it
With one of the highest APYs on our list and no instant transfer of your funds, we love that this account makes saving simple and rewarding.
what we don’t like
On the other hand, you’ll have to wait a few days whenever you need to access your Vio Bank MMA cash, which can pose a challenge in an emergency.
Who is it for?
Choose this account if you need to get top-notch APY and your savings. Just make sure you have cash on hand in your check for your immediate needs.
Vio Bank’s Cornerstone Money Market account offers a competitive interest rate (5. 30% on all balances) and a low minimum deposit requirement. There are no monthly maintenance fees or fees for incoming domestic or foreign cable transfers.
As a customer, you can manage your account through the bank’s popular mobile app. You can also make internal and external transfers. If you opt for paper statements, the monthly payment is $0 and there is a $10 transaction overpayment.
Interest is calculated daily and credited according to the month. There is a $10 payment for each withdrawal beyond six based on the monthly cycle.
We highly rank Bethpage Federal Credit Union Money Market Account because of its highly rated and easy-to-use mobile app. With the app, Bethpage members can send money to friends and family through its Pay Anybody feature, deposit checks, transfer cash, pay bills, and take advantage of savings and free budgeting tools.
Why we love it
Credit union fans will appreciate the fact that Bethpage makes it much less difficult to register and open an account online. And as is the case with many credit unions, you may not have to worry about monthly fees.
What we don’t like
The APY of this account is above average but low compared to the most productive cash accounts on the market.
Who is it for?
This MMA is suitable for consumers who prefer to do business with credit unions and visitor services and easy-to-use cellular applications.
Bethpage Federal Credit Union’s Marketplace Cash Account offers a competitive APY of 0. 10% to 2. 00% based on balance point with a minimum deposit requirement of $500. APY on all balance levels with a minimum deposit requirement of $500. Any balance over $500, jumbo or small, earns the same dividend rate as Bethpage. Balances less than $500 earn 0. 10%. And there are no monthly maintenance fees charged to your cash market account.
The yields earned on credit union accounts are referred to as dividends rather than interest. Dividends are compounded and credited to your account monthly. Bethpage recognizes three balance tiers—balances between $500 to $24,999, balances between $25,000 and $49,999 and balances above $50,000. All tiers pay the same money market account dividend. There’s a fee for certain types of transactions over six per month, but Bethpage does not list the fee on its website.
You can write up to 3 checks per month with this account. And you can manage your account online or through the Bethpage mobile app.
Becoming a Bethpage member is simple: you can do so by making a $5 deposit into a Bethpage savings account.
In short, yes! In many cases, you can get all the benefits of a classic savings account and a higher interest rate on a cash market account. Just make sure the account is FDIC uncertain and not a cash market mutual fund, as it might be. Don’t be unsure. These are wonderful budget accounts that you need to pay off, like an emergency fund.
I think cash market accounts are a wonderful way to earn interest on what can necessarily serve as a pseudo checking account. You have the option to pay with it while earning interest. While those aren’t the highest-interest-paying accounts, they’re a smart choice to maximize profits from needed dollars in the short term.
MMAs will offer higher interest rates than regular savings accounts, [which] can be favorable if you are looking to earn more on your savings while making moderate transactions in the account. MMAs sometimes offer greater liquidity than CDs, allowing you to withdraw funds without penalty. This can be favorable if you want occasional access to your cash or want to make sure you make transactions to and from your account.
The APY Express, considered as a smart cash market rate, is based on market trends at the time of searching for an account. Currently, the most competitive accounts offer APY between 4. 00% and 5. 00% or more. However, you may want to meet the minimum balance or activity requirements to get the maximum competitive rates. Many cash market accounts use tiered interest rate structures that pay different APYs on other balance levels — higher rates on higher balances.
As well as looking for a smart cash market rate at a reliable bank, deposit requirements, and account fees before opting for an MMA.
Money market rates are higher than savings account rates because MMAs are more likely to require higher minimum deposits or existing balances.
Money market rates will still be high in 2024, but may have plateaued. Money market account rates have risen over the past year, but are unlikely to rise further this year as the Federal Reserve has indicated it intends to cut interest rates. rates sometime in 2024.
The Federal Reserve does not set bank interest rates, but it does set the federal budget rate. This is the variety of interest rates used to check interbank finish and promote economic stability, and monetary institutions refer to it for recommendations on how to set their own interest rates for banks. their customers. In September 2023, the Federal Open Market Committee announced a pause in federal budget interest rate hikes, marking the end of ten consecutive rate hikes dating back to March 2022. Since then, the Federal Reserve has kept rates within the target range of 5. 25. % to 5. 50%. .
Given that consumers are enjoying some of the most productive cash market rates they’ve seen in years lately, this trend is very likely to continue as long as banks are willing to compete for new deposits. However, rates are expected to start falling at some point next year.
People haven’t looked for accounts in the cash market for several years because of low rates. But now the rates are smart and the dangers are minimal. You can earn more cash from your savings with a cash account in the marketplace.
– Ann Logue, Money Editor and Hedge Funds For Dummies
According to the Federal Deposit Insurance Corporation (FDIC), the average market rate is 0. 70% as of July 15, 2024.
Below is a review of average annual APYs for marketplace accounts since 2009, based on FDIC data.
Money market accounts (MMAs) are a type of deposit account presented through classic banks, credit unions, and online banks, which sit on the border between checking and savings accounts. You get the ability to earn interest from a high-yield savings account and, with many MMAs, the accessibility of a checking account, the addition of a debit card, and check-writing privileges.
Money market accounts don’t offer as much liquidity as checking accounts, as the number of transactions you can make according to the cycle is sometimes limited, but they tend to offer greater access to your cash than a savings account.
A high-yield cash market account is a cash market account that will pay an interest rate several times higher than the average rate for cash market accounts, as decided by the FDIC. You can regularly find high-yield cash market accounts at online banks and credit unions.
Money market accounts are similar to savings accounts in that you earn interest on the budget you deposit. These accounts aren’t for everyday expenses, like a check product, but they tend to offer limited liquidity and budget access — you could conceivably write checks or make debit transactions.
Money market accounts are considered investments as long as the funds are held in a financial institution insured by the FDIC at banks or through the NCUA at credit unions. The FDIC insures funds held in banks up to $250,000 per depositor, for each category. of the account holder, in case of bankruptcy of the bank. The NCUA offers a similar policy to all federal credit unions and most state-chartered credit unions.
Money market accounts are also money market accounts because they are not investment accounts. Your deposits are held safely until you want them and are not invested in risky assets such as stocks. Except for fees and penalties, there is no way to lose insured deposits in an MMA. .
Money market accounts offer a satisfactory middle ground between savings and checking account, offering the interest of a savings account and the liquidity (check and debit card writing capabilities) of a checking account. However, they are not without their drawbacks and may be too restrictive for some savers.
Money market accounts can be valuable if you:
When you have enough cash to meet the minimum balance and deposit requirements for a cash market account, it may be time to open one. Money market accounts can require between $500 and $5,000 to open and earn interest, which is particularly higher than the maximum. savings accounts. Wait until you open one if you can’t meet those needs.
Money Marketplace accounts can help you save for your short-term and long-term goals, giving you plenty of opportunities to use them. If you can meet the minimums without any problems, you may decide to open a cash account in the market instead of a savings account or in addition to it. Money Marketplace accounts are more flexible because they come with debit cards or check-writing capabilities, giving you simple access to cash you need to save but might need.
You can also use a currency market account for your side expenses, almost like an additional checking account. This way, you can maximize your interest while keeping your coins handy.
When looking for the most productive cash market account for your needs, weigh the pros and cons. Here’s what you need to do when looking for a cash market account:
You can open a cash market account in username or by following these steps:
Confirm that your account is open and in smart status by checking your cash market account balance.
You may find that other savings products meet your financial needs better than a cash market account. Below are some of the opportunities you consider.
When you compare a cash market account to a savings account, you’ll find that a cash market account is a type of savings vehicle that includes some checking account features, such as checking privileges and a debit card.
Money market accounts require a higher initial deposit and may have minimum balance requirements to earn APY.
Unlike cash market accounts, CDs are time deposits that lack liquidity. With those products, you agree to lock your cash for a certain period of time. Instead, you get a constant interest rate on your principal balance. Money market accounts report variable rates that can be replaced at any time. While there are many points that influence the interest rates that can be earned on either account, cash market rates can be competitive with CD rates.
The greater the differences between cash and CD accounts, the better decisions you can make when it comes to saving.
Cash market accounts are interest-bearing savings accounts at financial institutions, while cash market mutual funds are low-risk investment funds that can be obtained from brokers. A cash market account is insured through the FDIC, but it is not a cash market mutual fund.
To create this list, Forbes Advisor analyzed 59 cash market accounts from 44 financial institutions, adding a mix of traditional banks, online banks, and credit unions. We categorized the account into 14 knowledge issues in APY, minimum requirements, visitor experience, virtual experience, fees, and accessibility to funds. All of the accounts on our list are online accounts.
Here is the weight assigned to the category:
• APY: 45%
• Minimum: 15%
• Customer experience: 10%
• Digital experience: 10%
• Fee: 10%
• Affordability of funds: 10%
Banks and credit unions that provide APYs ranked among the most sensible on this list, as did those with low fees and easy-to-meet minimum deposit and balance requirements. Accounts with the highest visitor scores and the highest-scoring online and mobile banking teams also scored higher. And we prioritized cash market accounts that provide check and debit card writing privileges.
We also looked at whether there were any complex structures or point needs to earn APY or other prerequisites to earn APY. Higher minimum deposit and balance requirements have negatively impacted scores. The cash market account must be available nationwide. point to be included in this list.
To learn more about our scoring, our scoring method, and our editorial process, see our consultant on How Forbes Advisor Rates Banks.
Our comes from the following monetary institutions: ableBanking, Ally Bank, Axos Bank, BankDirect, BankPurely, BankUnitedDirect, Bethpage Federal Credit Union, BMO Harris, BrioDirect Banking, CFG Community Bank, CIT Bank, Connexus Credit Union, Discover, First Internet. Bank, iGoBanking, Investors eAccess, Keybank, Memory Bank, My eBanc, NASA Federal Credit Union, Nationwide Bank, NBKC Bank, Northern Bank Direct, Northpointe Bank, Pacific National Bank, Pen Air Federal Credit Union, PenFed, PNC Bank, Presidential Bank FSB, Quontic, Redneck Bank, Regions Bank, SalemFiveDirect, Sallie Mae Bank, Synchrony Bank, TAB Bank, EverBank, TotalDirect Bank, U. S. Bank, UFB Direct, Virtual Bank, Vio Bank, Zions Bank and Zynlo Bank.
Vio Bank, Connexus and Ally Bank will ultimately offer the highest cash rates in the market on accounts with a low or no minimum balance requirement. First Internet Bank and Connexus will also offer some of MMA’s rates if it manages to make it to the top. Minimum balance required to earn full APY.
That depends. Because they have lower overhead costs, many online banks pay higher interest rates than classic banks. When researching cash market accounts, pay attention only to the annual percentage yield (APY), but also to minimum deposit requirements, minimum balance requirements, and related fees.
Yes, as long as they are in an FDIC or NCUA insured monetary establishment. All of the banks on our list are FDIC insured up to $250,000 per depositor, for the account ownership category, in the event of the bank’s bankruptcy. The NCUA offers a similar policy to all federal credit unions and most state-chartered credit unions. Connexus Credit Union is insured through the NCUA.
This practice varies. Some cash market accounts constantly allow you to write checks from the account or make debit card transactions. You are typically limited to six transactions per cycle, but each institution sets its own policies. Before opening an account, be sure to ask about excessive withdrawal fees and transaction fees.
No, cash market accounts have variable interest rates that can accumulate or minimize over time. Consider banking products, such as CDs, if you need a consistent interest rate.
If your account is in a smart situation, you can withdraw your account balance and request that your account be closed at a branch, by phone, or online. Depending on the bank, you may not close your account online. Some banks may qualify for a payment if you close your account within a few months of opening it.
Yes, a cash market account is a savings account. You earn interest on the budget you deposit, and the interest you earn is compounded and deposited into your account.
Like other bank accounts, cash market accounts are insured through the FDIC or NCUA up to $250,000 per depositor per account in the event of the bank’s bankruptcy. This means you can be sure that your Cash Marketplace account budget is safe up to this limit. If you want to deposit more than this amount, there are features to secure your over budget. But don’t forget that cash market accounts, while safe options for hiding your money, aren’t the most lucrative and don’t beat inflation. You’ll want to be comfortable with risk, i. e. making an investment in stocks, to maintain the purchasing power of your cash.
Yes, cash market accounts are taxable. Any interest earned on a cash market account is considered a source of income through the IRS. Your bank or credit union will need to provide a Form 1099-INT that reports taxable interest bills made to your account each year. If you don’t get this form, you will still need to report taxable interest in addition to your source of income when you file your taxes. And since MMA has no tax advantages, everything you contribute is a source of after-tax income.