Your money has been parked in your checking account for years. All that time, however, it hasn’t made you any interest. With a money market account, you can change that.
A money market account is a savings account with checking account features, and it’s FDIC-insured up to $250,000. You can make up to six withdrawals per month, and you may get a debit card and checks. You might need to meet a minimum deposit as well as pay other fees to maintain your account.
Note that the average percentage yield (APY) for a money market account fluctuates as banks adjust their rates to the market. As you can imagine, rates have been dropping lately because of the worldwide crisis. You should look at account features other than APY – like fees – for this very reason. If you’re interested in locking in your savings APY, consider a certificate of deposit (commonly referred to as a CD). CIT has a no-penalty CD that is popular with risk-averse investors who are concerned about accessing their cash.
Noteworthy Money Market Accounts:
Highest-Paying Money Market Accounts in October 2022
If you’re ready to open your money market account, here are five different kinds to look into. They are all FDIC-insured up to the legal limit of $250,000, so you can feel safe and secure.
UFB Direct
Secure application on issuer’s website.
UFB Direct Elite Money Market Account
APY: Up to 3.01% APY
Monthly Fees: No maintenance fees with balances of $5,000 or more
Features:
Free debit card and postage-paid envelopes
Some check-writing privileges
Bank from anywhere with mobile app and SMS banking
FDIC insured
We like the UFB Direct Elite Money Market account because it offers a solid APY of 3.01%. You need to have a minimum balance of $5,000 in your account at all times to avoid paying a $10 monthly fee, so if you don’t have this much, it isn’t a good option.
UFB Direct, which is a product from the San Diego-based Axos Bank, offers 24/7 access through its digital banking tools, so you can see what’s in your account whenever you want. You must be a U.S. citizen or a resident alien in order to apply and have a Social Security number, a valid state ID and a valid U.S. address that isn’t a P.O. Box.
Vio Bank
Secure application on issuer’s website.
Vio Bank Cornerstone Money Market Savings Account
APY: 2.80% APY
Monthly Fees: None
Minimum Opening Balance: $100
Compounding Period: Daily
Features:
Automatic transfers
Mobile check deposits
FDIC insured
Vio Bank’s Cornerstone Money Market Savings account takes online-only to a new level. For example, it doesn’t provide a debit card or the ability to write checks, and it has no ATM network for easy cash withdrawals. Also, if you opt for paper statements, there’s a $5 monthly fee, so it’s best to go electronic for those. But if you’re thinking about getting a money market account strictly to stash your cash, and you plan to do your regular banking with another account, the 2.80% APY can be worth it.
The account does have a $100 minimum opening deposit, but there’s no minimum to earn the account’s high yield. There’s also no monthly fee to worry about. You can deposit checks via mobile deposit, but you can’t deposit cash with no ATM network.
The bank also offers an online savings account and certificates of deposit.
Quontic Bank
Secure application on issuer’s website.
Quontic Bank Money Market Account
APY: 2.00% APY
Monthly Fees: None
Minimum Opening Balance: $100
Compounding Period: Daily
Features:
Person-toperson transfers via Zelle®
Receipt tracking
No overdraft fees
FDIC insured
Quontic Bank’s money market account offers a 2.00% APY, regardless of your balance. And while there is a $100 minimum opening deposit, you don’t need to meet a certain balance requirement to avoid a monthly fee. What’s more, Quontic Bank also doesn’t charge overdraft fees.
The account also comes with other features, including bill pay, remote deposit, person-to-person transfers, check-writing privileges and even receipt tracking to help improve your money management.
One thing that sets Quontic Bank apart from the competition is how it uses your deposits. Specifically, the bank is dedicated to helping low-income families, immigrants, people of color, small business owners and others who are unable to obtain a home mortgage through traditional channels to realize the dream of homeownership.
Quontic Bank also offers other solid banking products, including checking accounts that offer cash and Bitcoin rewards on your debit card purchases. Like many other online banks, Quontic doesn’t accept cash deposits.
CIT Bank
Secure application on issuer’s website.
CIT Bank Money Market
APY: 1.55% APY
Monthly Fees: None
Minimum Opening Balance: $100
Features:
Access your money easily with Zelle® and Bill Pay
Daily compounding interest
FDIC insured
With only a $100 minimum deposit to open and a 1.55% APY, the CIT Bank money market account is a great choice if you want to start small and work your way up. You’ll earn interest on your entire daily balance, and that interest will be paid out monthly. There is no monthly service fee, but if you send an outgoing wire transfer (domestic only), you will pay $10 if your account has less than $25,000 in it.
For a limited time, new accountholders can earn a free year of Amazon Prime, which currently retails for $139 per year. To access this perk, use promo code AMZN22 on your application, then fund your account with at least $15,000 in the first 15 days of account opening. After that, you’ll need to maintain a balance of at least $15,000 for at least 60 days following the 60 day funding period.
CIT doesn’t offer the highest interest rate out there, but at least you only need $100 to start your account. After that, there’s no minimum balance required. The bank provides 24-7 online access to your account, which you can easily link to your Zelle or PayPal to make payments.
Sallie Mae® Bank
Secure application on issuer’s website.
Sallie Mae Bank Money Market Account
APY: 2.25% APY
Monthly Fees: None
Minimum Opening Balance: None
Compounding Period: Daily
Features:
Check-writing privileges
Easy online account management
Free transfers
FDIC insured
The Sallie Mae Bank money market account is relatively basic, offering a solid 2.25% APY. You don’t need a certain balance to earn that rate and you also don’t have to worry about a minimum opening deposit or monthly fee. In terms of other features, you’ll get what you generally expect with money market accounts, including check-writing privileges, the ability to manage your account online, free transfers and FDIC insurance.
Unfortunately, Sallie Mae Bank doesn’t accept either cash or money order deposits, so you’ll need to have another bank account you can deposit those into and then transfer the money to your money market account. The bank also offers other savings products and credit cards.
CFG Bank
Secure application on issuer’s website.
CFG Bank High Yield Money Market Account
APY: 2.90% APY
Monthly Fees: $10 with option to waive
Minimum Opening Balance: $1,000
Compounding Period: Daily
Features:
Competitive APY
Free access to over 1,600 M&T Bank ATMs where available
FDIC insured
Depending on your situation, the CFG Bank High Yield Money Market Account may be the perfect option for you. The bank only has two physical locations located near Baltimore, MD, but it also gives customers access to over 1,600 M&T Bank ATMs, which are located throughout the East Coast in states like MD, NJ, CT, DE, NY, PA, VA, WA and Washington DC. While you can technically open an account from anywhere in the US, you may want to consider other options if ATM access is important to you and you’re not on the East Coast.
This account also offers some of the highest interest rates available, with 2.90% APY being over 14x the national average for money market accounts.
The downside is if you go under $1,000, you’ll pay a $10 monthly fee and you won’t earn interest. On the plus side, you can fund accounts with mobile deposit, wire transfers, checks and bank transfers, and you’ll have access to more than 2,000 ATMs free of charge. To apply for an account, you must be a U.S. citizen or a resident alien and provide your address, Social Security number and driver’s license or state ID. You must initially fund your account with electronic transfer (ACH).
Ally Bank®
Secure application on issuer’s website.
Ally Bank High Yield Money Market Account
APY: 2.10% APY
Monthly Fees: None
Minimum Opening Balance: None
Compounding Period: Daily
Features:
Broad ATM access
No overdraft fees
Free transfers
FDIC insured
The online Ally Bank’s high-yield money market account is hard to pass up with its high 2.10% APY, no minimum balance requirement, no overdraft fees and no monthly fees. You’ll also earn that rate regardless of your balance.
While you’re still restricted to six withdrawals per month, you’ll have an easy time accessing your cash through a network of more than 43,000 fee-free ATMs. Other standard features Ally Bank offers include remote check deposit, free cashier’s checks, free incoming wire transfers, check-writing privileges and more.
One drawback to consider is that Ally Bank doesn’t accept cash deposits. In addition to a high-yield money market account, Ally also offers several checking and savings products, an investment platform, mortgage loans, auto loans and personal loans.
Premier Members Credit Union
Secure application on issuer’s website.
Premier Members Credit Union Money Market Account
APY: 2.00% APY on balances $2,000 or less
Monthly Fees: None
Minimum Opening Balance: $5
Compounding Period: Monthly
Features:
Unique “reverse-tiered” interest rates
No minimum balance requirements Free transfers
Paper checks
The Premier Members Credit Union Money Market Account does things a little differently, in that it utilizes a unique “reverse-tiered” interest system that grants higher APY to lower balances. In order to qualify for 2.00% APY, you’ll need to hold a balance of $2,000 or less; go over that, and your APY drops to 0.35% for balances of $2,000.01 – $5,000, and continues to drop all the way down to just 0.10%.
A big upside of this account? There is no minimum balance required. There is a very low minimum deposit of $5 to open the account, which is ideal if you don’t have a lot of money to put into your account right now. Dividends are paid out monthly and they provide checks as well.
As you might expect, this account may not be for you if you have several thousands of dollars to invest since you can unlock a higher APY with a different bank.
Which Money Market Account Is Right for You?
High-yield money market accounts often provide a high savings rate with some of the benefits of a checking account. However, each bank has its own spin on money market accounts in terms of fees and features, so it’s important to think about what matters most to you.
For example, a higher APY may not be worth it if the account’s features are somewhat limiting. But if you don’t plan on using the account for anything other than a savings fund, limited features may not be a big deal to you. You’ll also want to review minimum opening deposits and balance requirements to earn interest. Fortunately, plenty of high-yield money market accounts have low or no requirements for these features.
In addition to money market accounts, it’s a good idea to compare high-yield savings accounts to ensure that you’re getting the best deal on your savings.
