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- The average money market account earns 0.23% Annual Percentage Yield (APY), according to the FDIC.
- The exact interest rate on a money market account may rely on the account steadiness and monetary establishment.
- Money market interest costs can change over time.
A money market account options like a monetary financial savings account — it earns a small amount of interest and would possibly assist money develop, and has month-to-month limits on withdrawals.
Your money market account’s interest rate will vary based totally on quite a lot of parts, along with the stableness, which monetary establishment you make the most of, and the current interest rate market.
Money market interest costs vs. high-yield monetary financial savings interest costs
Money market accounts will typically have bigger interest costs than the average savings account’s interest rate. But, amongst banks which have every high-yield savings accounts and money market selections, high-yield monetary financial savings accounts often come out on excessive.
|Bank||Current money market interest rate (APY)||Current high-yield monetary financial savings interest rate (APY)|
|Discover (Member FDIC)|
|PenFed Credit Union|
Average money market interest costs by account steadiness
Your account’s steadiness will have an effect on your interest rate.
According to data from S&P Global, the higher your steadiness, the higher your interest rate. Here are the average interest costs all through six utterly totally different account balances:
|Account steadiness||Average APY|
Some money market accounts might have a minimal account steadiness, so make it attainable for the account you’re considering fits your steadiness.
Average money market rate by monetary establishment
Each monetary establishment models utterly totally different costs for its money market accounts. Money market accounts are supplied at every brick and mortar banks and on-line banks. Here are current money market interest costs supplied by quite a lot of commonplace banks.
|Bank||Money market interest rate|
Some banks present bigger interest costs for people with quite a lot of accounts at one monetary establishment. Check collectively along with your monetary establishment to see if a selected relationship rate might apply to your money market account.
Average money market account rate over time
Money market accounts’ interest costs may fluctuate over time. Money market costs tend to change with the overall financial system and interest costs set by the Federal Reserve.
According to data from the FDIC, the average money market interest rate has often decreased since 2009.
In 2022, the Federal Reserve has raised interest costs quite a lot of events. As a end result, the average money market account has slowly gone up as soon as extra. The average money market interest rate is at current 0.23% APY for accounts with balances under $100,000, according to data from the FDIC.