Money market account rates today, March 23, 2025 (best account provides 4.50% APY)

In 2024, the Federal Reserve made the decision to cut its target rate three times, leading to a decrease in deposit rates, including money market account (MMA) rates. As a result, it has become increasingly important for consumers to compare MMA rates and make sure they are maximizing their earnings on their balances.

According to the FDIC, the national average money market account rate currently stands at 0.64%. However, some of the top accounts are offering rates of 4% APY and even higher. It is advised to act quickly as these high rates may not be available for much longer, making now the perfect time to open a money market account and take advantage of these favorable rates.

One of the leading options in terms of MMA rates is First Foundation Bank, which offers an impressive 4.50% APY with a minimum opening deposit of $1,000. This competitive rate is sure to attract those looking to maximize their earnings.

When considering the amount of interest you can earn from a money market account, it is crucial to look at the annual percentage rate (APY). This figure takes into account the base interest rate and how often interest compounds, with money market accounts typically compounding daily.

For example, if you were to deposit $1,000 into an MMA with an average interest rate of 0.64% and daily compounding, your balance would grow to $1,006.42 after one year, with just $6.42 in interest earned. However, opting for a high-yield money market account offering 4% APY would result in a balance of $1,040.81 after one year, including $40.81 in interest.

The more you deposit in a money market account, the greater your potential earnings. For instance, depositing $10,000 into a money market account with a 4% APY would yield a total balance of $10,408.08 after one year, with $408.08 in interest earned.

In conclusion, with MMA rates fluctuating in response to changes in the market, it is essential to stay informed and seek out the best rates available. By comparing different accounts and taking advantage of high-yield options, individuals can maximize their earnings and make the most of their money market investments.