Learn how a lot you can earn with right this moment’s money market account rates. The Federal Reserve reduce its goal price 3 times in 2024. So deposit charges — together with cash market account (MMA) charges — have began falling. It’s extra vital than ever to check MMA charges and make sure you earn as a lot as doable in your stability.
The national average money market account rate stands at 0.59%, based on the FDIC.
Even so, a few of the high accounts are at the moment providing charges of 4% APY and up. Since these charges might not be round for much longer, take into account opening a cash market account now to reap the benefits of right this moment’s excessive charges.
Right here’s a have a look at a few of the high MMA charges out there right this moment:
See our picks for the 10 best money market accounts available today>>
Moreover, the desk beneath options a few of the greatest financial savings and cash market account charges out there right this moment from our verified companions.
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The quantity of curiosity you may earn from a cash market account is determined by the annual percentage rate (APY). It is a measure of your whole earnings after one yr when contemplating the bottom rate of interest and the way usually curiosity compounds (cash market account curiosity usually compounds day by day).
Say you set $1,000 in an MMA on the common rate of interest of 0.59% with day by day compounding. On the finish of 1 yr, your stability would develop to $1,005.92 — your preliminary $1,000 deposit, plus $5.92 in curiosity.
Now let’s say you select a high-yield cash market account that provides 4% APY as an alternative. On this case, your stability would develop to $1,040.81 over the identical interval, which incorporates $40.81 in curiosity.
The extra you deposit in a cash market account, the extra you stand to earn. If we took our identical instance of a cash market account at 4% APY, however deposit $10,000, your whole stability after one yr can be $10,408.08, that means you’d earn $408.08 in curiosity.
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