A money market account (MMA) is a style of deposit account that gives features of each savings and checking accounts. They will let you earn competitive rates of interest in your balance, while easily accessing those funds via a debit card and/or checks.

Like other deposit accounts, most as much as $250,000 per depositor, per institution, and per ownership category. This insurance protects your account balance in case your bank or .

Should you’re excited about opening a money market account, it’s necessary to buy around and compare rates of interest so you already know you’re getting probably the most out of your savings. But what’s a great money market rate? Rates of interest vary widely, but it may possibly help to know the common money market rate today, which may function a benchmark for comparing accounts.

Average money market account rates

Money market accounts pay variable rates of interest, meaning they will go up or down at any time. Typically, when the , MMA rates also go up, and vice versa.

Here’s a take a look at how average money market rates have modified over the past 12 months:

And zooming out, here’s how money market account rates have modified since 2010:

As of the time of writing, the national average rate for a money market account is 0.64%. Though that is fairly high by historical standards, it still isn’t much.

The excellent news is that many banks and credit unions offer MMA rates which can be much higher than the national average. In actual fact, one of the best money market accounts are paying as much as 5% APY or more.

Doing a little research to seek out one of the best rates available could make a major difference in your savings balance over time.

The right way to get one of the best money market account rate

Money market account rates fluctuate, but there are steps you possibly can take to make sure that you get one of the best possible rate:

• Shop around: Take time to check MMA rates from different banks and credit unions, since rates of interest vary quite a bit between financial institutions. Online banks, particularly, are known for offering probably the most competitive rates.

• Check along with your current bank: Some financial institutions offer higher rates to existing customers, often known as relationship rates. As you’re shopping around, be sure you check along with your existing bank to see if you happen to qualify for a relationship rate of interest.

• Make a bigger opening deposit: Many money market accounts are tiered, where higher rates are offered on higher balances. Making a bigger opening deposit and maintaining the next could enable you to earn a greater rate.

• Be careful for fees: Many bank accounts, including money market accounts, include certain . For instance, you could be charged a , or a fee in case your balance drops below a certain threshold. These fees can cancel out interest earnings, so it’s necessary to decide on an account that charges few fees or offers ways to get fees waived.