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The most productive cash market accounts (MMAs) offer high rates, minimum 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’re 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 have 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 (APYs) and account principal points are accurate as of May 1, 2024.
Our experts chose Connexus Credit Union’s high-yield money market account because it is 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 earnings 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.
For who ?
Choose this account if you want to write checks and have at least $20,000 to save – the higher the balance, the higher the APY.
Investors earn 0. 25% APY for balances between $1,000 and $19,999. 99, 2. 51% APY for balances between $20,000 and $99,999. 99, 2. 76% APY for balances between $100,000 and $249,999. 99, 3. 01% APY for balances between $250,000 and $499. 999. 99, 3. 26% APY for balances between $500,000 and $999,999. 99. The highest tier will pay 4. 01% APY but requires a giant balance of $1,000,000 or more.
While you will have to deposit at least $1000 to open an account, there is no penalty if your balance falls below $1000. Balances under $1000 are not eligible for dividends.
This account includes the ability to write checks. And Connexus offers 24/7 online and mobile banking features for your money.
In addition to the club’s normal organization and geographic categories, you can become a member of Connexus by making a one-time donation of $5 to the Connexus Association.
Returns earned on credit union accounts are called dividends instead of interest. Connexus Credit Union dividends are compounded and credited monthly. All members will need to make a $5 deposit into a Connexus Credit Union savings account to identify their club before adding other types of accounts. There is a $6 payout for certain types of four transactions 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.
For who ?
Check 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 take advantage of an advantageous interest rate, regardless of the amount of cash in their accounts. The 5. 00% annual percentage return applies to all balance levels, called from $0. 01 to $4999. 99, from $5000. 00 to $149999. 99 and balances above $149999. 99.
You can 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 payment of $10 is charged for each one transaction beyond six.
Customer service is available Monday through Friday via live chat, email, or phone. The bank also offers a popular mobile app.
Interest is compounded daily and credited monthly. There is a $10 transaction overage payment for certain types of transactions beyond six per cycle.
Our experts liked Zynlo Bank’s 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 bank failure. Deposits are insured through the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor for each account ownership category. Above this amount, deposits are insured through the Massachusetts-based Share Insurance Fund (DIF).
Why We Love It
Zynlo Bank’s Cash Marketplace 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.
For who ?
This account is ideal for those who want to earn interest and ensure full coverage of their funds, even if their balance exceeds the usual insurance limit of $250,000.
You can open the account with $10 and earn the APY with a minimum balance of $0. 01.
Interest is compounded 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 making six transactions consistent with your account cycle, but Zynlo does not qualify a payment for excess transactions.
Zynlo doesn’t offer checks 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 over the phone.
We chose First Internet Bank because their 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 is waived on balances of $4,000 or more, and in cases of emergency. The budget tends to be large enough to exceed that 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 overlook it. Also, this account doesn’t come with an ATM card, which may be a merit. or a demerit depending on your needs.
For who ?
Opt for this account if you have at least $4000 to save and prefer not to have a bank card to boost spending.
First Internet Bank’s Money Market Savings offers a competitive APY of 3. 77% on a daily balance of $1 million or less or an APY of 5. 48% on a daily balance of more than $1 million. There is a $5 monthly maintenance payment, but you can achieve it by maintaining an average daily balance of at least $4000. Customers can open an account for $100, which is less than what other banks and credit unions require.
To get a debit card or checks, you must 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 rebates.
Interest is compounded and credited monthly. There is a $5 transaction overage payment for certain types of transactions beyond six per cycle.
Our experts liked Ally Bank’s cash market account because it will pay a competitive APY and makes your cash easily accessible. While some types of withdrawals and transfers are limited to six per cycle, you can make unlimited withdrawals at more than 43,000 ATMs at no cost. Nationwide surcharge.
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, it may close your account if you continually exceed this limit.
For who ?
This MMA is ideal for savers who use ATMs and either checks or debit cards.
Ally Bank will pay a competitive rate of 4. 20% on all APY balance levels in your cash marketplace 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 scores highest for visitor satisfaction.
Ally helps keep fees to a minimum – it doesn’t charge fees for monthly maintenance, ACH transfers, domestic or foreign incoming wire transfers, cashier’s checks, or copies of online statements.
Interest is compounded and credited monthly. Ally recognizes 3 payment tiers: 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 take advantage of a maximum rate on the savings they’ve 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.
For who ?
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 cash market account offers a competitive 4. 65% APY, with no minimum deposit requirement, and no monthly maintenance fees. The account doesn’t come with a debit card, but account holders can write checks.
Transfers from money market accounts out of the account to settle loans at Sallie Mae are unlimited.
Interest on Sallie Mae cash market accounts is compounded 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 among the most sensible 5% of “competing accounts. “This is based on the accounts of the 10 largest banks and savings banks. retail outlets in 10 major U. S. markets
Why We Love It
EverBank’s Yield Pledge Money Market account will pay an introductory APY of 4. 30% for the first year on balances up to $250,000; Then the continuous rate of 4. 05% is applied and has no monthly payment or minimum.
What We Don’t Like
There is an overpayment of $10, so this account is not suitable for spending.
For who ?
Check out EverBank’s MMA Performance Pledge if you want to take advantage of a generous promotional APY and prefer access to a debit card and ATM.
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 above. 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 of savings.
Why We Love It
With one of the highest APYs on our list and no instant transfer of your funds, we love the fact that this account makes saving simple and rewarding.
What We Don’t Like
On the other hand, you will have to wait a few days each time you need to access your Vio Bank MMA cash, which can present a challenge in an emergency.
For who ?
Opt for this account if you need to get a top-notch APY and your savings. Just make sure you have some money 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 domestic or foreign inbound wire transfers.
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 opt for paper statements, the monthly payment is $0 and there is a $10 overpayment per transaction.
Interest is calculated daily and credited according to the month. There is a $10 payout for each withdrawal beyond six depending on the monthly cycle.
We rank Bethpage Federal Credit Union’s cash market account height as the most sensible thanks to its highly-rated, 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 saving tools.
Why We Love It
Fans of credit unions 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 on this account is above average but low compared to the most productive cash accounts on the market.
For who ?
This MMA is for consumers who prefer to do business with credit unions and appreciate 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% based on the 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, giant or small, earns the same dividend rate as Bethpage. Balances below $500 earn 0. 10%. And no monthly maintenance fees are charged to your cash marketplace account.
The returns earned on credit union accounts are called dividends, not interest. Dividends are compounded and credited to your account on a monthly basis. Bethpage recognizes 3 degrees of balance: balances between $500 and $24,999, balances between $25,000 and $49,999, and balances greater than $50,000. All grades pay the same dividend into the market account in cash. There are fees for certain types of transactions greater than 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 Bethpage’s mobile app.
Becoming a Bethpage member is simple: you can do it 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 in a cash market account. Just make sure that the account is uncertain from the FDIC and that it is not a cash market mutual fund, as it might be. Don’t be unsure. These are wonderful accounts for the budget you need to liquidate, such as 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 directly from it while earning interest. While they are the accounts that generate the highest interest, they are an attractive option for maximizing the returns on the dollars needed in the short term.
MMAs offer higher interest rates than regular savings accounts, [which] can be favorable if you’re looking to earn more from your savings while also making moderate transactions on 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 make transactions to and from your account.
The express APY, considered as a smart cash market rate, depends on market trends at the time you are looking for an account. Currently, the most competitive accounts offer APY between 4. 00% and 5. 00% or higher. However, you may need to meet the minimum balance or activity requirements to qualify for the competitive maximum rates. Many cash market accounts use tiered interest rate structures that pay other APYs at other balance levels: higher rates on higher balances.
As well as looking for a smart cash market rate at a reliable 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 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 variety of interest rates that are used to consult the interbank finish and promote economic stability, and monetary institutions refer to it for recommendations on setting their own interest rates. your customers. 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 kept rates within the target range of 5. 25. % to 5. 50%. .
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 sometime next year.
According to the Federal Deposit Insurance Corporation (FDIC), the average market rate is 0. 66% as of April 15, 2024.
Below is a review of the average annual APYs for market accounts since 2009, based on FDIC data.
Money market accounts (MMAs) are a type of deposit account filed through traditional banks, credit unions, and online banks, which sit on the border between checking and savings accounts. You get the ability to earn interest from 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 don’t offer as much liquidity as checking accounts, as the number of transactions you can make according to the cycle is sometimes 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 budget you deposit. These accounts aren’t for day-to-day expenses, like a checking product, but they tend to offer limited liquidity and budget access — you could conceivably write checks or make debit transactions.
Money market accounts are considered investments as long as the funds are held in an FDIC-insured financial institution in banks or through the NCUA in credit unions. The FDIC insures funds held in banks up to $250,000 per depositor, for each category. of the account holder, in the event of bank failure. The NCUA offers a similar policy to all federal credit unions and the most state-licensed credit unions.
Money market accounts are also money market accounts because they are not investment accounts. Your deposits are held safely as long as 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 medium between savings and checking accounts, offering the interest of a savings account and the liquidity (check and debit card writing capabilities) of a checking account. However, they are not without their drawbacks and may simply be too restrictive for some savers.
Money market accounts can be valuable if you:
When you have enough cash to meet the minimum balance and deposit requirements of a cash market account, it’s possibly 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 the maximum. savings accounts. Wait until you open one if you can’t meet those needs.
Money Marketplace accounts can help you save for your short- and long-term goals, allowing you to find plenty of opportunities to use them. If you can meet the minimums without issue, you may decide to open a Cash Marketplace account instead of or in addition to a savings account. Money Marketplace accounts are more flexible because they come with a debit card or check-writing capabilities, giving you simple access to the cash you need to save but might need.
You can also use a coin market account for your secondary expenses, almost like an additional checking account. This way, you can maximize your interest while keeping your coins on 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’ll find that a cash market account is a type of savings vehicle that includes some checking account features, such as checking privileges and a debit card.
Money market accounts require a higher initial deposit and may have minimum balance requirements to earn the APY.
Unlike cash market accounts, CDs are time deposits that lack liquidity. With those products, you agree to lock up your cash for a certain period of time. Instead, you get a constant interest rate on your principal balance. Money market accounts report variable rates that can be replaced at any time. While there are many points that influence the interest rates that can be earned on either account, cash market rates can be competitive with CD rates.
The greater the differences between cash and CD accounts, the more decisions you can make when it comes to saving.
Cash market accounts are interest-bearing savings accounts at financial institutions, while cash market mutual funds are low-risk investment funds that can be obtained from brokers. A cash market account is insured through the FDIC, but not a cash market mutual fund.
To create this list, Forbes Advisor analyzed 59 cash market accounts from 44 monetary institutions, adding a mix of classic 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.
The weighting assigned to the category is as follows:
Banks and credit unions with the best APYs topped this list, as did those with low fees and easy-to-meet minimum deposit and balance requirements. Accounts with the best visitors revel in the ratings, and top-rated online and mobile banking teams also took the top spots. And prioritized accounts in the cash market with check and debit card writing privileges.
We also looked at whether there were complex structures or point needs to earn APY or other prerequisites to earn APY. The higher minimum deposit and balance requirements have negatively impacted the scores. The cash market account must be available at the national bank. point to be included in this list.
To learn more about our scoring, scoring method, and editorial process, consult our consultant on How Forbes Advisor Rates Banks.
Our 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. Banking, 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 lately offer the highest cash rates on the market on accounts with a low or no minimum balance requirement. First Internet Bank and Connexus will also offer some of the MMA rates if you manage to succeed at the top. minimum balance required to earn full APY.
That depends. Because they have lower overhead costs, many online banks pay higher interest rates than classic banks. When looking for accounts in the cash market, pay attention not only to the annual percentage yield (APY), but also to minimum deposit requirements, minimum balance requirements, and related fees.
Yes, as long as they are in a monetary establishment insured through the FDIC or NCUA. All of the banks on our list are FDIC insured for up to $250,000 per depositor, by account ownership category, in the event of bank failure. 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’s usually limited to six transactions per cycle, but each institution sets its own policies. Before opening an account, be sure to inquire about withdrawal fees and excessive 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 consistent interest rate.
If your account is in a smart situation, you can withdraw your account balance and request that your account be closed at a branch, over the phone, or online. Depending on the bank, they may not close your online account. Some banks may qualify 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 the bank’s failure. This means that you can be sure that your cash market account budget 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, aren’t the most lucrative and don’t exceed inflation. You’ll want to be comfortable with risk, i. e. , make 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 the 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, everything you bring to the table is a source of after-tax income.
Editor-in-Chief, Global Data & Automation at Forbes Advisor. Mitch has over a decade of experience as a private finance editor, writer, and content strategist. Prior to joining Forbes Advisor, Mitch worked for various sites, adding Bankrate, Investopedia, Interest, PrimeRates, and FlexJobs.
Kevin has been writing and creating content about non-public finance for over six years. He is the founder of the award-winning blog Family Money Adventure and host of the Family Money Adventure Show podcast. He has been quoted in publications such as Readers. Digest and The Wall Street Journal. Kevin’s paintings have appeared in Bankrate, Credible, CreditCards. com, Fox Money, LendingTree, MarketWatch, Newsweek, New York Post, Time, ValuePenguin, and USA Today.