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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 everyone is measured equally. You can read more about our editorial rules and our banking method for ratings below.
Here’s a list of the cash market accounts our experts found, ranked from highest to lowest annual percentage yield (APY).
See below for more information on why we chose the account, the pros and cons, and to access the bank’s reviews.
Annual Percentage Yields (APY) and account principal points are accurate as of August 9, 2024.
Our experts chose Connexus Credit Union’s high-yield money market account because it’s a graduated rate account that will pay higher dividends for larger deposits and grants 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 may not 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.
Investors 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 for 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 $1,000 to open an account, there is no penalty if your balance falls below $1,000. Balances less than $1000 are not eligible for dividends.
This account includes the ability to factor checks. And Connexus brings 24/7 online and mobile banking features to your money.
In addition to the club’s normal organization and geographic categories, you can become a Connexus member by making a one-time donation of $5 to the Connexus Association.
The returns earned on credit union accounts are called dividends rather than interest. Connexus Credit Union dividends are capitalized and credited monthly. All members will be required to make a $5 deposit into a Connexus Credit Union savings account to identify the club before adding other account types. There is a $6 payment for certain types of transactions in 4 according to 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.
Who is it for?
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% APR applies to all balance levels, known as $0. 01 to $4999. 99, $5000. 00 to $149,999. 99, and balances over $149,999. 99.
You may choose to use a debit card with this cash market account. And Quontic has an extensive network of more than 90,000 ATMs across the country. Note that you are limited to six transactions per cycle – a $10 payment 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 capitalized 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
Zynlo Bank’s cash market account offers a competitive rate: 5. 00% APY for 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 only $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 are limited to six transactions consistent with your account cycle, but Zynlo does not qualify a payment 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 doesn’t apply to balances of $4,000 or more, and the emergency budget tends to be large enough to exceed this 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 skip it. Additionally, this account does not come with an ATM card, which may be a merit. or a demerit depending on your needs.
Who is it for?
Opt for this account if you have at least $4,000 to save and prefer not to have a bank card to fuel spending.
First Internet Bank’s 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 monthly maintenance payment of $5, but you can achieve this by maintaining an average daily balance of at least $4000. Customers can open an account for $100, which is less than what is required through other banks and credit unions.
To get a debit card or checks, you’ll need to 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 discounts.
Interest is compounded and credited monthly. There is an overage transaction payment of $5 for certain types of transactions beyond six per cycle.
Our experts liked the Ally Bank Money Market account because it will pay a competitive APY and makes your cash easily accessible. Although some types of withdrawals and transfers are limited to six depending on the cycle, you can make unlimited withdrawals at more than 43,000 surcharge-free ATMs nationwide.
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 higher transaction fees, you 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 and debit cards.
Ally Bank will pay a competitive rate of 4. 20% on all APY balance levels in your cash market account with no minimum deposit requirement. Account holders get popular checks and a debit card with this account.
Ally Bank, founded online, offers visitors 24/7 via phone, live chat, and email. It also obtains the highest score in visitor satisfaction.
Ally helps keep fees to a minimum by charging no fees for monthly maintenance, ACH transfers, domestic or foreign incoming wire transfers, cashier’s checks, or online copies.
Interest is compounded and credited monthly. Ally recognizes 3 pay levels: less than $5000, $5000 to $24,999. 99, and $25,000 or more. All 3 tiers pay the same APY 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 higher 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 MMA if you’re using your savings to build. The savings team and competitive APY provide added motivation.
Sallie Mae Bank’s Money Market account offers a competitive APY of 4. 60% with no minimum deposit requirements and no monthly maintenance fees. The account does not come with a debit card, but account holders can write checks.
Money market account transfers outside of the Sallie Mae Loan Settlement Account are unlimited.
Interest on Sallie Mae Money Market accounts is capitalized 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 in the top 5% of “competing accounts. ” This is based on the accounts of the 10 largest banks and building societies. retail locations in 10 major US markets
Why we love it
EverBank’s Yield Pledge cash market account will pay 4. 05% and has no monthly fees or minimums.
What we don’t like
There is an excessive transaction payment of $10, so this account is not suitable for spending.
Who is it for?
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 compounded daily and credited monthly. EverBank charges $10 per transaction above 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 more. 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 to access your Vio Bank MMA cash, which can be challenging in an emergency.
Who is it most productive for?
Choose this account if you need to earn a top-tier 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 transfers of domestic or foreign cables.
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 go with paper statements, the monthly payment is $0. And there’s a $10 overage transaction payment.
Interest is calculated daily and credited according to the month. There is a $10 payment for each withdrawal beyond six according to the monthly cycle.
We rank Bethpage Federal Credit Union’s cash market account height as the most sensible thanks to its highly rated and easy-to-use mobile app. With the app, Bethpage members can send cash to friends and family through its Pay Anybody feature. Deposit checks, move cash, pay bills, and take advantage of flexible budgeting and savings tools.
Why we love it
Credit union fans will appreciate the fact that Bethpage makes it much less difficult to sign up 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 for consumers who prefer to do business with credit unions and appreciate the visitor service and easy-to-use mobile apps.
Bethpage Federal Credit Union’s Marketplace Cash Account offers a competitive APY of 0. 10% to 2. 00%, depending 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, large or small, earns the same dividend rate with Bethpage. Balances less than $500 earn 0. 10%. And there are no monthly maintenance fees charged to your cash market account.
Income earned on credit union accounts is called dividends and not interest. Dividends are compounded and credited to your account on a monthly basis. Bethpage recognizes 3 balance grades: balances between $500 and $24,999, balances between $25,000 and $49,999, and balances over $50,000. All grades pay the same dividend on cash market accounts. There are fees for certain types of transactions over six per month, but Bethpage doesn’t list those fees 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 good option for maximizing the profits from the dollars needed in the short term.
MMAs offer higher interest rates than regular savings accounts, [which] can be advantageous if you’re 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 your budget without penalty. This can be favorable if you want occasional access to your cash or if you want to make sure you transact to and from your account.
The Express APY, considered a smart cash market rate, depends on market trends at the time you search for an account. Currently, the most competitive accounts offer APYs between 4. 00% and 5. 00% or more. However, you may need to meet minimum balance or activity requirements to qualify for the competitive maximum rates. Many cash market accounts use tiered interest rate structures that pay additional APYs at other balance levels – higher rates on higher balances.
As well as look for a smart cash market rate at a trustworthy 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 remain high in 2024, but they may have plateaued. Money market account rates have risen over the past year, but they are unlikely to rise further this year as the Federal Reserve has indicated that it intends to cut interest. rates sometime in 2024.
The Federal Reserve does not set bank interest rates, but it does set the federal budget rate. This is the diversity of interest rates that is used to advise transactions between banks and promote economic stability, and monetary institutions use it as a guide to set their own rates for their clients. 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 maintained rates in the target range of 5. 25% to 5. 50%. . Training
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, financial writer and author of Hedge Funds For Dummies
According to the Federal Deposit Insurance Corporation (FDIC), the average market rate is 0. 66% as of July 15, 2024.
Below is a review of average annual APYs for market accounts since 2009, according to FDIC data.
Money market accounts (MMAs) are a type of deposit account filed through classic banks, credit unions, and online banks, which sit somewhere between checking and savings accounts. You gain advantages from the interest-bearing ability of 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 do not offer as much liquidity as checking accounts because the number of transactions you can make according to the cycle is occasionally 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 money you deposit. These accounts are not intended for everyday expenses, such as a current product. But they tend to offer limited liquidity and budget access: You may be able to 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 securely 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 accounts, offering the interest of a savings account and the liquidity (check writing and debit card capabilities) of a checking account. However, they are not without drawbacks and may simply be too restrictive for some savers.
Money market accounts may be valuable if you:
When you have enough cash to meet the minimum balance and deposit requirements of a cash market account, maybe it’s time to open one. Money market accounts can require anywhere from $500 to $5,000 to open and earn interest, which is particularly higher than maximum savings accounts. Wait to 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 marketplace 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 coin market account for your secondary expenses, almost like an extra checking account. This way, you can maximize your interest while keeping your coins close at hand.
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 user 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 should consider.
When you compare a cash market account to a savings account, you will find that a cash market account is a type of savings vehicle that includes some checking account features, such as check writing 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 term accounts that lack liquidity. With these products, you agree to hold your money for a certain period of time. Instead, you earn a constant interest rate on your principal balance. Money Marketplace accounts earn variable rates that can be updated at any time. Although many factors influence the interest rates earned on any of the accounts, cash market interest rates can be competitive with CD rates.
The greater the differences between cash accounts and CDs, the more decisions you can make when saving.
Money market accounts are interest-bearing savings accounts at financial institutions, while cash market mutual funds are low-risk investment funds that can be obtained through brokers. A cash market account is FDIC insured, but a cash market mutual fund is not.
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 accounts into 14 knowledge topics in the categories of APY, minimum requirements, visitor experience, virtual experience, fees, and budget accessibility. All of the accounts on our list are online accounts.
Here is the weighting assigned to the category:
• APY: 45%
• Minimum: 15%
• Customer experience: 10%
• Digital experience: 10%
• Fee: 10%
• Accessibility of backgrounds: 10%
Banks and credit unions that provide APY 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 higher visitor scores and higher-scoring online and mobile banking teams also scored better. And we prioritized cash market accounts with check-writing and debit card privileges.
We also looked at whether there were complex tier structures or needs to earn APY or other prerequisites to earn APY. High minimum deposit and balance requirements have had a negative effect on ratings. The cash market account must be available at the national point to appear on this list.
To learn more about our ratings and reviews method and our editorial process, please consult our consultant on How Forbes Advisor Rates Banks.
Our funding 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 on accounts with a low or no minimum balance requirement. First Internet Bank and Connexus will also offer some of the MMA rates if it manages to succeed at the top. minimum balance required to earn full APY.
It depends. Because they have lower overhead costs, many online banks pay higher interest rates than classic banks. When looking for cash market accounts, pay attention not only to annual percentage yield (APY), but also 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 consistently allow you to write checks from the account or make debit card transactions. It is usually limited to six transactions per cycle, but each institution sets its own policies. Before opening an account, be sure to inquire about excessive withdrawal fees and transaction fees.
No, cash market accounts have variable interest rates that can increase or decrease over time. Consider banking products, such as CDs, if you need a steady interest rate.
If your account is in good standing, you can withdraw your account balance and request that your account be closed in a branch, over the phone, or online. Depending on the bank, it 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 for up to $250,000 per depositor per account in the event of a bank failure. This means you can be sure that the budget in your cash market account is safe. up to this limit. If you want to deposit more than this amount, there are features to secure your excess budget. But don’t forget that market cash accounts, while safe places to hide your cash, are not the most lucrative and don’t exceed 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 each year reporting taxable interest payments made on your account. On this form, you must still report taxable interest on most of your source of income when you file your taxes. And since MMAs are tax-free, all you bring in is a source of after-tax income.