With recent shifts in Federal Reserve policy, interest rates for Money Market Accounts (MMAs) have experienced significant changes. Hereâs a breakdown of the current landscape and how you can maximize your earnings.
đĄ Why MMA Rates Are Changing
March 2022 â July 2023: The Federal Reserve raised rates 11 times, driving MMA rates higher.
September & November 2023: The Fed cut rates by 75 basis points (50 + 25), causing MMA rates to decline.
These fluctuations highlight the importance of securing high rates while theyâre still available.
đž Current National Average MMA Rate
0.60% APY (according to the FDIC)
While this is the average, many banks offer significantly higher rates, some exceeding 5% APY.
đ„ Top MMA Rates Available Today
Here are some of the best options currently on the market:
Zynlo Money Market Account: 5.00% APY
TotalBank Online Money Market: 4.86% APY (on balances of $2,500+)
Brilliant Bank Surge Money Market: Up to 4.85% APY
VIO Cornerstone Money Market Savings: 4.77% APY
Quontic Bank Money Market: 4.75% APY
First Foundation Bank Online MMA: 4.75% APY
Prime Alliance Bank Personal MMA: 4.50% APY
UFB Direct Portfolio MMA: 4.31% APY
đ How Much Interest Can You Earn?
Your earnings depend on the APY and how much you deposit. Hereâs an example:
Example 1: National Average Rate (0.60% APY) on $1,000
Balance after 1 year: $1,006.02
Interest earned: $6.02
Example 2: High-Yield Rate (5% APY) on $1,000
Balance after 1 year: $1,051.27
Interest earned: $51.27
Example 3: High-Yield Rate (5% APY) on $10,000
Balance after 1 year: $10,512.67
Interest earned: $512.67
đ Key Takeaways
1ïžâŁ Act Quickly: Rates are falling as the Fed cuts its benchmark rate. Lock in higher rates while they last.
2ïžâŁ Compare Options: Donât settle for the national average. Look for high-yield MMAs offering 4% to 5% APY.
3ïžâŁ Higher Deposits = Higher Earnings: The more you deposit, the more interest youâll earn, thanks to compound interest.
If you're looking to grow your savings with minimal risk, nowâs the time to secure a high-yield money market account.
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