Best Money Market Accounts of 2025

Money Market Accounts: What To Know

If you’re searching for the best money market accounts of 2025 or trying to figure out who has the best money market rates, it helps to understand the basics first. Knowing how these accounts work makes it easier to compare offers and avoid fees.

What Is a Money Market Account?

A money market account (MMA) is a type of deposit account that blends features of checking and savings accounts. You can think of it as a savings account with some extra flexibility.

Key traits most top money market accounts share:

• They are usually FDIC- or NCUA-insured, so your deposits are protected up to legal limits
• They often pay higher yields than traditional savings accounts, especially at online banks and credit unions
• Many offer check-writing and debit card or ATM access
• They may have minimum deposit or balance requirements to open the account or earn the highest APY

In recent years, competitive money market accounts have commonly offered APYs in the 4% range or higher, while the national average interest rate on a basic savings account at traditional banks has stayed well under 1%. That spread is why many savers use MMAs as a home for emergency funds and short-term goals.

Most banks still limit certain types of withdrawals or transfers to about six per month, even though the Federal Reserve relaxed the old Regulation D limit. Exceeding those limits can trigger fees or account conversions, so it’s important to read your bank’s specific rules.

Pros and Cons of Money Market Accounts

Like any account, money market accounts have advantages and trade-offs.

Pros of Money Market Accounts

• Flexible access – Many MMAs offer debit card access, checks and ATM withdrawals, making them easier to use than a traditional savings account
• Competitive interest rates – Top money market accounts often pay significantly higher APYs than standard savings accounts at brick-and-mortar banks
• FDIC or NCUA insurance – Money market deposit accounts at banks and credit unions are usually insured up to $250,000 per depositor, per institution, per ownership category
• Good fit for emergency funds – You can earn interest and still get to your money quickly when you need it

Cons of Money Market Accounts

• Minimum balance requirements – Many MMAs require a minimum deposit to open the account or a minimum ongoing balance to avoid fees or unlock the highest rates
• Monthly fees – Some banks charge a monthly maintenance fee if you don’t meet balance or relationship requirements
• Withdrawal limitations – Banks often limit certain withdrawals or transfers to around six per month, and excess activity can lead to fees or account changes

Best for: Money market accounts are generally best for savers who want a higher interest rate than checking, plus some spending flexibility for occasional purchases or emergencies.

How Money Market Accounts Work

When you open a money market account, you’ll usually:

• Make an opening deposit – Some accounts have no minimum, while others ask for $500 to $5,000 or more
• Earn interest on your balance – The bank or credit union pays an APY that may be tiered by balance, so larger balances can earn higher rates
• Use the account for occasional spending – You can often make purchases with a debit card, write checks or move money to checking

When you compare accounts, pay close attention to:

• APY – Look for a competitive rate relative to other money market and high-yield savings accounts
• Minimums – Make sure the opening deposit and ongoing balance requirements fit your budget
• Fees – Prefer accounts with no monthly fee, or easy ways to waive it
• Access – Consider whether you want branch access, ATM networks, or are comfortable with online-only banking

Why You Might Open a Money Market Account

A money market account can be a smart move if you want:

• Higher interest than a checking account – Checking accounts usually pay little to no interest, while competitive MMAs can grow your cash faster
• More flexibility than a traditional savings account – Check-writing and debit access can make it easier to handle unexpected expenses without moving money between accounts
• Liquidity without a fixed term – Unlike CDs, money market accounts do not lock your cash for a set term, so you can withdraw when needed

Common uses include:

• Emergency funds
• Short-term savings goals like a vacation, wedding or home project
• Holding cash between investments while you decide your next move

Money Market Account Terms To Know

Before you open a money market account, it helps to understand a few key terms you’ll see in disclosures and rate tables.

• Annual percentage yield (APY): The total rate of return you earn over a year, including the effect of compounding
• Minimum deposit: The amount required to open the account
• Balance requirement: The minimum you must keep in the account to avoid fees or earn the advertised APY
• Withdrawal limits: The bank’s rules about how many transfers or withdrawals you can make each month before fees or other consequences apply
• Monthly fees: Any maintenance or service fees the bank charges, and the conditions to waive them (for example, keeping a certain balance)

Alternatives To Money Market Accounts

If you’re comparing money market accounts vs other safe places for cash, here’s a quick overview:

Money Market Account vs. Savings Account

A money market account vs savings account comparison comes down to access and rate:

• Many money market accounts offer better APYs and more flexible access (debit cards, checks) than a standard savings account at a traditional bank
• Savings accounts may have lower minimums and fewer fees, especially at online banks
• Both are typically FDIC- or NCUA-insured when held at insured institutions

If you rarely touch your savings and just want the highest possible APY, a high-yield online savings account may be just as competitive as a money market account. If you want spending flexibility plus interest, an MMA can be the better fit.

Money Market Account vs. Money Market Fund

A money market account is a deposit account at a bank or credit union.

A money market fund is an investment product, typically held at a brokerage or mutual fund company. It invests in short-term securities like Treasury bills and commercial paper.

Key differences:

• Risk: Money market accounts are generally insured, while money market funds are not FDIC-insured
• Provider: Accounts come from banks or credit unions; funds come from investment firms or brokerages
• Behavior: Funds can fluctuate slightly in value, while deposit accounts are designed to keep your principal stable

If your priority is capital preservation and insurance, a money market account is usually the safer choice.

Money Market Account vs. Checking Account

A checking account is built for everyday transactions: bills, direct deposit, card purchases, ATM withdrawals and transfers. Most checking accounts pay very little interest, if any.

A money market account is better for holding larger balances you don’t spend daily. You get:

• Higher interest than most checking accounts
• Some spending features, but not quite the same level of unlimited access

It often makes sense to keep your main spending money in checking and your emergency or short-term savings in a money market account.

How To Choose the Right Money Market Account

Once you understand the basics, you can compare specific offers and choose the best money market account for your situation.

Consider these factors:

1. APY vs alternatives
   Compare the account’s APY to other money market accounts and high-yield savings accounts. Make sure you’re getting a rate that’s competitive with top online options, not just a slight bump over a basic savings account.
2. Minimums and tiering
   Check the minimum deposit to open and any balance requirements to avoid fees or earn the top rate. Some banks only pay their advertised APY on balances above certain thresholds.
3. Fees
   Look for no monthly fees or accounts where the fee is easy to waive by meeting simple conditions. A high advertised APY doesn’t help much if a monthly fee eats into your earnings.
4. Access and features
   Decide how you plan to use the account. If you want to write checks or withdraw from ATMs, choose an MMA that offers those features and check the ATM network. If you’re comfortable banking online, an online-only provider may offer better rates and lower fees.
5. Insurance and safety
   Make sure the bank or credit union is FDIC or NCUA insured and that your total deposits stay within coverage limits across all accounts and ownership types.

How To Open a Money Market Account

Opening a money market account is similar to opening any other bank account. You’ll typically need:

• A government-issued ID, such as a driver’s license, state ID or passport
• Your legal name and date of birth
• A Social Security number or taxpayer identification number
• Contact information, including your address, email and phone number
• An initial deposit, which you can fund by linking another bank account, using a debit card, mailing a check or visiting a branch

You can usually apply online, by phone or in person, depending on the bank. Once approved and funded, you’ll start earning interest right away according to the account’s APY and compounding schedule.

All information about Discover® Cashback Debit & Discover® Money Market Account has been collected independently by GOBankingRates. Discover® Cashback Debit & Discover® Money Market is no longer available through GOBankingRates.

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Heather Taylor, Daria Uhlig, Dawn Allcot, John Csiszar and Gabrielle Olya contributed to the reporting for this article.