Best Money Market Accounts of 2020

Money markets pay interest with checking or debit card access.

By John Csiszar December 3, 2019 Money Market Accounts 101

Looking for the high yield of a savings account with the check-writing access of a checking account? Consider a money market account. Most banks offer some type of money market, but it pays to shop around as rates can vary wildly from bank to bank. Fees can also differ from institution to institution, so it’s important to do your homework.

GOBankingRates compiled a list of the Best Money Market Accounts of 2020 based on an analysis of the following factors:

Minimum deposit to open a money market account
Annual percentage yield (APY)
Minimum balance to earn the APY
Monthly maintenance fees
Minimum account balance to avoid the monthly fees

If you want to jump ahead to learn more about money market accounts, click on one of the following links:

Best Money Market Accounts of 2020
Tips for Choosing the Best Money Market Account
Money Market Accounts vs. Savings Accounts
Best Money Market Account Rates
FAQ
Methodology

Here’s a quick glance at the Best Money Market Accounts of 2020:

Best Money Market Accounts & Rates of 2020
Institution		Money Market Account	Standard Rate (APY)	Minimum Balance Required	Minimum Opening Deposit	Monthly Fees
	Sallie Mae Bank	Money Market Account	1.83%	$0	$0	$0
	Discover Bank	Money Market	1.55%-1.60%	$0	$2,500	$0
	TIAA Bank	Yield Pledge Money Market Account	Introductory APY of 1.85%; percentage varies by tier	$0	$500	$0
	CIT Bank	Money Market Account	1.85%	$0	$100	$0
	Ally Bank	Money Market Account	0.75%	$0	$0	$0
	Axos Bank	High-Yield Money Market	1.05%	$0	$1,000	$0
	Virtual Bank	eMoney Market	2.01%	$0.01	$100	$5
	BOK Financial Corporation	Personal Money Market	0.13%	$0	$50	$7.95
	U.S. Bank	Package Money Market Savings	0.04%-0.07%	$0	$25	$0
	BankDirect	Money Market Plus	1.51%	$10,000	$500	$0

Best Money Market Accounts of 2020

All money market accounts share certain features, such as FDIC insurance. However, other important characteristics — including fees, rates, features and benefits — can vary significantly from institution to institution. Here’s an overview of the main characteristics of each of our Best Money Market Accounts of 2020.

Sallie Mae Bank: Money Market Account

Why We Like It: The Sallie Mae Bank Money Market Account has all of the characteristics you should look for in a money market: a high APY, no fees and no minimum balance requirement.

Perks:

Online account management
Check writing capability
No monthly fees
No minimums

Things To Watch Out For:

$10 fee for each transaction in excess of federally mandated limits of six per month

Fees: $0

Minimum Deposit: $0

APY: 1.83%

How To Open an Account: You can open a Sallie Mae Money Market account online. You’ll need to provide standard personal and financial information, such as your date of birth, Social Security number and bank account information.

Discover Bank: Money Market

Why We Like It: Discover Bank has a user-friendly online interface, high yields and no fees.

Perks:

In addition to no monthly maintenance or minimum balance fees, Discover Bank’s Money Market account offers free standard checks, free withdrawals at more than 60,000 ATMs nationwide and the following additional perks, all with no additional charge:

Replacement debit card
Official bank check
Online bill pay
Expedited delivery for debit card replacement
Expedited delivery for official bank checks
Deposited item returned
Excessive withdrawal fee
Stop payment order
Insufficient funds
Account closure

Things To Watch Out For:

Lower APY paid on deposits of $100,000 or less

Fees: $0

Minimum Deposit: $2,500

APY: 1.55% / 1.60% for $100,000-plus

How To Open an Account: Discover Bank Money Market accounts can be opened online in a few minutes with personal and financial information.

TIAA Bank: Yield Pledge Money Market

Why We Like It: TIAA Bank’s Yield Pledge guarantee assures that you will always receive one of the best rates available — that’s a pretty good promise for a no-fee account.

Perks:

No charges for ATM usage
Reimbursement of all third-party ATM fees on balances of at least $5,000
Reimbursement of $15 per month in third-party ATM fees on balances of less than $5,000
Yield Pledge guarantee that your rate will always be in the top 5% of available money market rates
Online and mobile banking, including mobile check deposits

Things To Watch Out For:

Ongoing, non-promotional rates currently range between 1.01% and 1.80%
Transactions in excess of the federally mandated six per month face an excessive transaction fee of $10; repeated violations could result in the closure or conversion of the account to a checking account

Fees: $0

Minimum Deposit: $500

APY: 1.85%

How To Open an Account: You can open your TIAA Pledge Money Market account online with your name and address, birth date, Social Security number, email address and employment information. You’ll also be asked to select a PIN for your account.

CIT Bank: Money Market Account

Why We Like It: A high APY, low minimum balance and no monthly fees make CIT Bank’s Money Market account a solid choice.

Perks:

Yields over 12 times the national average
No monthly service fees
24/7 secure mobile and online banking, including remote check deposit

Things To Watch Out For:

Certain transactions in excess of the federally mandated six per month are hit with a $10 fee per occurrence, up to $50 monthly

Fees: $0

Minimum Deposit: $100

APY: 1.85%

How To Open an Account: You can open a CIT Money Market account online in about five to 10 minutes. You’ll need your primary home address, valid email address, valid phone number and Social Security number.

Ally Bank: Money Market Account

Why We Like It: Ally Bank is one of the few money market accounts with a $0 minimum and $0 fees, in addition to numerous perks.

Perks:

24/7 customer service with a live person
No fees or account minimums
Use any Allpoint ATM in the U.S. for free
Up to $10 per month in domestic third-party ATM fees reimbursed per month
No fees for standard or expedited ACH transfers, copies of online statements, incoming wires, postage-paid deposit envelopes or official/cashier’s checks

Things To Watch Out For:

Rates aren’t as high as those of competitors
Fee of $10 for certain withdrawals in excess of the federally mandated six-per-month limit (ATM withdrawals are unlimited)

Fees: $0

Minimum Deposit: $0

APY: 0.75%

How To Open an Account: Ally Bank accounts can be opened online in about five minutes. You must be 18 years or older with a Social Security number and a U.S. residential street address, and you’ll need to provide your legal name and birth date.

Axos Bank: Money Market Account

Why We Like It: Axos Bank’s Money Market Account has no ongoing minimum balance requirements, no fees and a good APY. Plus, the account is accessible through a number of means.

Perks:

Check writing privileges
Debit card access
Online bill pay
Online and mobile banking, including remote check deposit
Two-step account authentication and other security measures

Things To Watch Out For:

$1,000 minimum to open account

Fees: $0

Minimum Deposit: $1,000

APY: 1.05%

How To Open an Account: You can open your Axos Money Market account online. When you start your application, the bank will ask if you want to add on a no-fee, Essential Checking account to your application, which may make sense for certain customers.

Virtual Bank: eMoney Market

Why We Like It: The current promotional rate on Virtual Bank’s eMoney Market account is one of the highest money market APYs available, and the monthly fee is easy to avoid.

Perks:

Smartphone app allows account management, including mobile deposits
CD rates are also high

Things To Watch Out For:

Standard APY is 0.80%
$15 excess transaction fee applies to transactions in excess of federally mandated six per month
Requires $100 balance to avoid $5 monthly fee

Fees: $5

Minimum Deposit: $100

APY: 2.01%

How To Open an Account: After agreeing to a consent form, you can open your Virtual Bank eMoney Market account online with basic personal and financial information.

BOK Financial Corporation: Personal Money Market

Why We Like It: No-fee check writing and free access to more than 32,000 ATMs nationwide make the BOK Financial Corporation Personal Money Market account a good option, but only for those who can make a larger initial deposit.

Perks:

Free access to more than 32,000 MoneyPass ATMs nationwide
Live chat available
Can elect to use QuickSave programs for automatic saving when you use the BOK Financial debit card or bill pay
Mobile app
No-fee check writing

Things To Watch Out For:

Requires $1,000 minimum to avoid $7.95 monthly fee
Excess transaction fee of $10 per transaction, with a $50 maximum per cycle
3% fee for use of international ATMs, in addition to any terminal fees

Fees: $7.95

Minimum Deposit: $50

APY: 0.13%

How To Open an Account: You can open your BOK Financial account online in about five minutes. You’ll need to provide names, physical addresses, Social Security numbers and birth dates for all applicants, who all must be U.S. citizens.

U.S. Bank: Package Money Market Savings

Why We Like It: U.S. Bank is a financial powerhouse, offering a one-stop shop for all your financial needs. Whereas large banks often charge higher fees, the U.S. Bank Package Money Market Savings account is a refreshing change, with a $0 monthly fee.

Perks:

U.S. Bank can meet any of your financial needs, from investments and loans to checking and savings accounts
Online and mobile banking, including remote deposit
Electronic statements
No fee for U.S. Bank ATM withdrawals
Automated account alerts
More than 3,000 branches and 4,700 ATMs available across the country

Things To Watch Out For:

Requires you to maintain an open U.S. Bank Silver or Gold Checking Package
$15 excess withdrawal fee; account may convert to a checking account with repeated violations

Fees: $0

Minimum Deposit: $25

APY: 0.04%-0.07%

How To Open an Account: You can open a money market account online at U.S. Bank if you are 18 or older and a legal resident of the United States. You’ll need a Social Security number or tax ID number, a valid driver’s license, state ID or military ID and an opening deposit.

BankDirect: Money Market Plus

Why We Like It: BankDirect’s Money Market Plus offers a sizable 1.51% APY, but you’ll need to pony up $10,000 to get that rate.

Perks:

Interest compounds daily
First 50 checks free upon request
Free ATM card
Four reimbursed ATM fees per statement cycle
Unlimited ATM withdrawals without penalty

Things To Watch Out For:

Rate drops to 0% for amounts below $10,000
$10 excess transaction fee

Fees: $0

Minimum Deposit: $500

APY: 1.51%

How To Open an Account: You can fill out a new account form online and submit it electronically at BankDirect, but you’ll then have to sign a deposit agreement and mail it to the bank with your opening deposit. Alternatively, you can contact Client Support at 877-839-2737.

Tips for Choosing the Best Money Market Account

When picking a money market account, you should look for a combination of high yields, low minimum balance requirements, zero fees and debit card/check-writing access. Since most accounts don’t rank at the top in every single category, you’ll have to shop around for an account that best matches your own personal financial needs.

For example, if you plan on using your money market account mainly as a parking place for your funds, you may not need an account that offers debit card or check-writing access. However, if you want to use the account as a higher-yielding alternative to a checking account, access might be your paramount concern.

Money Market Accounts vs. Savings Accounts

Money market accounts can pay competitive yields, but they are often more like checking accounts than savings accounts. Money market accounts are generally designed to be more accessible than savings accounts, with ATM access, check-writing capability or both. Savings accounts may have ATM access but don’t allow check writing. Here’s a look at some of the differences between money market accounts and savings accounts.

Advantages of a Money Market Account

May have debit card access
May have check-writing capability
Higher yields than traditional checking accounts
FDIC insurance

Disadvantages of a Money Market Account

May have higher minimum deposit requirements than savings accounts
Yields often below those of online savings account

Best Money Market Account Rates

Many of the banks on this year’s list appeared on the Best Money Market Accounts 2019 list because banks that do things right often continue excelling. However, you shouldn’t evaluate a money market account simply on the basis of rates. Fees, minimum balances and access to your money also are important considerations. The Best Money Market Accounts of 2020 each offer something exceptional, so you should be able to find a quality account that meets your financial needs in the above list.

FAQ

Money market accounts aren’t generally as well-known as their deposit account cousins — checking and savings accounts. Here’s a look at some of the most commonly asked questions regarding money market accounts.

What Is a Money Market Account?

A money market account is a type of hybrid deposit account, combining elements of a savings account, a checking account and a CD. Money market accounts carry FDIC insurance and usually pay higher yields than checking accounts, yet many still offer ATM and/or check-writing access.

Why Should I Care About High Money Market Rates?

You should care about high money market rates because it’s always great to have additional options for parking your money. If you don’t write very many checks, for example, a money market account might be a viable alternative to a traditional checking account, with the added benefit of a high yield.

Are Money Market Accounts Safe?

Yes, true money market deposit accounts carry the same FDIC insurance as CDs and savings accounts. You’re covered up to $250,000 per account. Note that money market mutual funds are a different product and are not covered by FDIC insurance.

Can You Lose Money in a Money Market Account?

Money market accounts are FDIC-insured, so you don’t have to worry about losing money in one. Money market mutual funds, on the other hand, are not FDIC-insured, so you potentially can lose money in those investments.

What Are the Disadvantages of Money Market Accounts?

Money market accounts are a type of hybrid investment, sharing characteristics of both checking accounts and savings accounts. However, you won’t have as much access to your money as you would with a checking account, which allows for unlimited withdrawals, and you generally earn as much interest as you would with a straight savings account.

How To Open a Money Market Account

You can open a money market account at most financial institutions either online or in a branch. You’ll generally need personal and financial information, such as your name, address, date of birth, Social Security number and bank account number.

More From GOBankingRates

Methodology: GOBankingRates identified the Best Money Market Accounts of 2020 based on the following factors: (1) minimum deposit to open a money market account, (2) annual percentage yield, (3) minimum balance to earn the APY, (4) monthly maintenance fees and (5) minimum account balance to avoid the monthly fees. GOBankingRates’ rankings for the Best Banks of 2020 were based on rates and other information compiled from individual institutions’ websites and/or conversations with representatives from the financial institutions throughout September 2019 and October 2019. All rates and other information pertaining to each account listed in the article were last verified in November 2019. All costs, terms and conditions are subject to change at the discretion of each financial institution. For more information, see the complete methodology for the rankings.

About the Author

John Csiszar

After earning a B.A. in English with a Specialization in Business from UCLA, John Csiszar worked in the financial services industry as a registered representative for 18 years. Along the way, Csiszar earned both Certified Financial Planner and Registered Investment Adviser designations, in addition to being licensed as a life agent, while working for both a major Wall Street wirehouse and for his own investment advisory firm. During his time as an advisor, Csiszar managed over $100 million in client assets while providing individualized investment plans for hundreds of clients.