Is a money market account safe?

Money market accounts are safe at federally-insured banks or credit unions as long as they’re within limits and guidelines. When banks are covered by the Federal Deposit Insurance Corp. (FDIC), for example, funds are covered up to $250,000 per depositor, per insured bank for each account ownership category. An account at a credit union that’s a member of the National Credit Union Administration (NCUA) offers the same insurance coverage. Whether your money market account is in a member FDIC bank or member NCUA credit union, your money that’s within limits and guidelines is protected and backed by the full faith and credit of the U.S. government should the bank or credit union fail.To check whether a bank you're considering is FDIC-insured, use the FDIC’s BankFind tool, which can help you realize if multiple banks use the same FDIC certificate, or NCUA’s Credit Union Locator. Always double-check with the FDIC or NCUA and your financial institutions to confirm insurance coverage.

How do money market accounts differ from money market funds?

Money market funds and money market accounts are different products. You’ll find money market accounts at FDIC-insured banks and at NCUA credit unions. You’ll likely find money market funds at a brokerage. Money market mutual funds aren’t insured by the FDIC or the NCUSIF at an NCUA credit union. But they’re considered to be low-risk investments that are liquid. Some money market funds may also be exempt from income taxes. Both money market accounts and money market funds may offer the ability to write checks.

Why do money market accounts pay higher interest?

Generally, a high-yield money market account pays a higher APY than a checking account because banks can assume that your money will be in there for a longer period. You can withdraw from a money market account just like a checking account, although you may be limited to a certain maximum number of transfers or withdrawals per month.

Are money market rates fixed?

Most money market rates are variable, not fixed. That means the rate and APY you receive can rise or fall as market conditions change. A fixed introductory APY is the exception. During the promotional period, the fixed yield gives you a certain APY for a specific period of time. You might lose the fixed yield, however, if you don’t follow certain rules. An introductory rate may also require a deposit made with new money, which usually must come from outside the bank.

Are money market accounts taxed?

All taxable and tax-exempt interest must be reported on your federal income tax return. Most interest that you receive or that’s credited to an account that you can withdraw without penalty is taxable income in the year it becomes available to you, according to the Internal Revenue Service. Consult with an accountant to answer your specific tax questions.

Best money market accounts of May 2025 (Up to 4.36% APY )

Written by

Matthew Goldberg

Edited by

Marc Wojno, MBA

Reviewed by

Greg McBride, CFA

Updated May 2, 2025

At Bankrate we strive to help you make smarter financial decisions. Though our partners compensate us from links on this page, we maintain editorial integrity, and partners don't influence our product evaluations. Here's how we make money and here is our advertiser disclosure.

A money market account (MMA) is a type of savings account and can be an ideal place to earn a competitive yield on your savings. They charge you minimal fees and usually have a low minimum deposit. What's more, some accounts offer check-writing privileges and/or debit card access, which gives you more flexibility when withdrawing your money. While the average MMA annual percentage yield (APY) is only 0.46, Bankrate’s best money market accounts pay more than eight times as much. This list includes Bankrate’s highest-rated accounts, offering the highest APYs from FDIC banks or NCUA credit unions. Our team has verified the accuracy of these rates as of May 2, 2025.

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Best money market accounts and rates for May 2025

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Vio Bank

4.8 Bankrate MMA score

Annual percentage yield

4.36%
Min. balance for APY

$0
Min. deposit to open

$100

Why Vio Bank?

Vio Bank’s Cornerstone Money Market Savings Account comes with a high APY and low minimum deposit of $100 to open. As long as you opt-in to e-statements, you won’t pay a monthly maintenance fee. But this account doesn’t come with check-writing privileges or a debit card so it functions more like a regular savings account.

Pros

The Vio Bank Cornerstone Money Market Savings Account earns a very competitive yield.
Cons

The account doesn’t include a debit card or the ability to write checks.
A $5 monthly fee is charged if you receive paper statements.

Read review

CFG Community Bank

4.2 Bankrate MMA score

Annual percentage yield

4.32%
Min. balance for APY

$1,000
Min. deposit to open

$1,000

Why CFG Community Bank?

CFG Bank’s High Yield Money Market account earns a very competitive APY, although you’ll only earn interest on the portion of your balance greater than $1,000. You’ll also need at least $1,000 to open the account, and maintaining a lower daily balance results in a $10 monthly service fee. The account also doesn’t include check-writing privileges or an ATM card.

Pros

CFG Bank’s High Yield Money Market account earns a top-notch rate of return
Cons

You only earn interest if your balance is $1,000 or more.
You’ll pay a $10 monthly service fee if you don’t keep a daily balance of at least $1,000 in the account.
The account doesn’t allow for check writing or ATM access.

Read review

Quontic Bank

4.9 Bankrate MMA score

Annual percentage yield

4.25%
Min. balance for APY

$1
Min. deposit to open

$100

Why Quontic Bank?

Quontic Bank’s Money Market Account offers a competitive yield and requires a $100 minimum opening deposit. Included are a debit card and check-writing privileges. The bank also offers mobile check deposit as well as Zelle for sending money to others. But note that you cannot deposit cash into this account.

Pros

Quontic Bank’s money market account offers a high APY.
The account doesn’t charge monthly service fees or overdraft fees.
Account holders have access to 90,000 fee-free ATMs nationwide.
Cons

You can only make six transfers and withdrawals from your money market account per statement period.
There’s no way to deposit cash into the account.

Banesco USA

4.0 Bankrate MMA score

Annual percentage yield

4.00%
Min. balance for APY

$2,500
Min. deposit to open

$2,500

Why Banesco USA?

You may not have heard of Banesco USA Bank, but its Online Money Market account may be worth a look if you have enough money in the bank. It earns one of the highest yields among money market accounts, but does require that you keep a minimum of $2,500 in the bank to earn that yield, and to avoid the $15 monthly maintenance fee. The account comes with domestic wire transfers, mobile banking, Zelle and check writing privileges. This account is only good for savers who don't plan on amassing, or spending, more than $100,000 a year, as that's the limit for annual outgoing and incoming activity in the account (excluding the initial deposit). And there are a few other limits: no cash deposits and no international wires.

Pros

Competitive APY.
Check writing privileges.
Access to peer-to-peer payments.
Cons

Relatively high minimum balance to earn the competitive APY.
High monthly maintenance fee if you dip below a balance of $2,500.

Read review

Sallie Mae Bank

4.3 Bankrate MMA score

Annual percentage yield

3.90%
Min. balance for APY

$0
Min. deposit to open

$0

Why Sallie Mae Bank?

Sallie Mae Bank’s Money Market Account comes with a high APY and the ability to write checks. It requires no minimum balance to open and doesn’t charge monthly maintenance fees. The bank’s mobile app allows customers to deposit checks and set up customized account notifications. The account doesn’t come with a debit card or allow for ATM access so you won’t be able to deposit cash.

Pros

Sallie Mae Bank’s Money Market account earns a competitive yield and doesn’t require a set minimum balance.
You can use the account to write checks, and mobile check deposit is available.
Cons

The account doesn’t offer a debit card or ATM access.
No cash deposit.
Customer service hours are limited compared to other banks on this list. You’re only able to reach Sallie Mae Bank during the week from 9 a.m. to 6 p.m. Eastern.

Read review

Western State Bank

4.3 Bankrate MMA score

Annual percentage yield

3.75%
Min. balance for APY

$0
Min. deposit to open

$5,000

Why Western State Bank?

The High Yield Money Market account from Western State Bank earns a competitive APY on all balances but you’ll need to deposit at least $5,000 when opening the account. Once open, there’s no monthly maintenance fee or set minimum balance required to avoid one. Access to your funds is more limited with this account: it doesn’t come with a debit card, ATM access or check-writing privileges.

Pros

Western State Bank’s money market account earns a competitive yield and doesn’t charge monthly maintenance fees.
Cons

The $5,000 minimum opening deposit is higher than what some other banks require.
The account doesn’t allow for check writing or provide a debit or ATM card.
Other than the money market account, Western State Bank doesn’t offer additional accounts that can be opened online.

Read review

Ally Bank

4.4 Bankrate MMA score

Annual percentage yield

3.60%
Min. balance for APY

$0
Min. deposit to open

$0

Why Ally Bank?

Ally Bank’s Money Market Account earns a high APY on all balances, without charging monthly service fees or overdraft fees. Customers receive fee-free access to more than 75,000 ATMs in the Allpoint and MoneyPass networks. Ally also offers up to $10 per month for fees charged at other ATMs. Other account perks include check-writing privileges and 24/7 phone customer service.

Pros

Ally Bank’s money market account reimburses up to $10 of out-of-network ATM fees per statement cycle.
The account provides check-writing privileges, a debit card and mobile check deposit.
Cons

While the bank doesn’t charge fees for excessive transactions, it does impose a combined limit of 10 withdrawals and transfers from your Ally savings and money market accounts per statement cycle.

Read review

Discover Bank

4.5 Bankrate MMA score

Annual percentage yield

3.50%
Min. balance for APY

$0
Min. deposit to open

$0

Why Discover Bank?

Discover Bank offers a strong yield on its Money Market Account, and it doesn’t require a minimum opening deposit. There is a tiered APY structure, however, and you’ll need at least $100,000 balance to earn the highest APY (though that APY isn’t all that much higher). The account comes with ATM access and a debit card, and you’ll be able to write checks but you won’t be able to deposit cash.

Pros

Discover Bank’s money market account earns a competitive APY.
The account offers a debit card and check-writing privileges.
There is no excessive transaction fee or limit.
Account owners get fee-free access to more than 60,000 ATMs nationwide.
Cons

You won’t be able to deposit cash into this account.

Bankrate's expertise

Bankrate’s trusted industry knowledge

Read our full methodology

Our banking editorial team regularly evaluates data from more than a hundred of the top financial institutions across a range of categories (brick-and-mortar banks, online banks, credit unions and more) to help you find the options that work best for you.

48 years

of industry experience

3 k

deposits rates tracked

120

banks reviewed

Bankrate staff insights

"My partner and I opened up a money market account soon after getting married because our bank was offering a higher rate on that account than on its savings account,” says a Bankrate staff member. “We also sometimes wrote one or two checks from the account in a month, so we appreciated the ability to do that."

Recent news on money market rates

Yields on deposit accounts, such as money market accounts, tend to move with the Fed’s interest rate moves. Banks usually increase their yields when the Fed raises rates, and they lower yields when the federal funds rate declines.

On March 19, the Federal Reserve chose to hold rates at a target range of 4.25-4.5 percent, marking the second consecutive rate setting meeting during which no changes took place. Before these meetings, the Fed lowered rates by a total of 100 basis points, or 1 percentage point, during three meetings in late 2024.

Even though national averages on some deposit accounts, including money market accounts, have decreased, top money market account rates are currently at their highest in over a decade, outside of the current rate cycle. And the yields are still outpacing inflation, so your cash in a money market account isn’t losing purchasing power.

The money market account national average APY is at 0.46 percent, according to Bankrate’s most recent survey of banks. Top money market account yields, like from accounts on this page — are around eight times the national average.

But money market accounts have variable APYs, so if you’re looking to lock in a set rate for a certain amount of time, consider a certificate of deposit (CD) instead.

BANKRATE EXPERT FAQ

What our industry experts are saying

Greg McBride

CFA, Bankrate Chief Financial Analyst

As a saver, if you have your money in the right place, 2025 is going to be another good year. Seeking out the most competitive money market accounts will produce returns that are currently well ahead of inflation, and that is poised to continue for the foreseeable future. Interest rates will likely come down further, but the Fed is only going to cut interest rates if they’re comfortable that inflation is moving lower as well.

How to choose a money market account

Money market accounts are a good option for achieving your savings goals. Choosing the right money market account should help you earn a competitive annual percentage yield (APY). Some of the best money market accounts allow savers to earn a high yield as well as have check-writing privileges.

Here are the three most important things to consider when choosing a money market account:

What to know about money market accounts

A money market account with a high yield is similar to a high-yield savings account, except it might offer check-writing privileges.

A money market account is a type of savings deposit account that can be found at banks and credit unions. Money market accounts work like a savings account, where you can deposit and withdraw money. You will also earn interest on the money you keep in a money market account.

Check-writing privileges: A money market account may allow you to write checks against the account. This is one of the main differences between money market accounts and savings accounts. Savings accounts don’t usually offer this.
Interest: Money that you earn for having your funds deposited with a bank.
Compound interest: Earning interest on the previous interest you’ve earned.
Interest rate: The percentage of your balance that is paid to you over the course of one year for having your funds on deposit. This number doesn't take into account the effects of compounding.
Annual percentage yield (APY): This takes into account the effects of compounding during the year. The best way to compare yields is to use this number, rather than comparing interest rates. The higher the APY, the more interest you’ll earn on your cash.
Minimum balance requirement: The amount you have to keep in a savings account in order to avoid a monthly maintenance fee.

Learn more: How does a money market account work?

Who should get a money market account?

A money market account could be an ideal option if you’re someone who’s looking for an account to boost your savings or looking for more flexibility to withdraw your savings without incurring penalties. Some of the popular reasons savers open a money market account include:

You can find competitive money market accounts that earn yields much higher than those of traditional savings accounts, for instance. Large banks are known for paltry yields at or near 0.01 percent APY.
Money market accounts can sometimes provide easier access to your funds than with a savings account, if they come with a debit card or check-writing privileges.
Money market accounts, like savings accounts, are a good place for your emergency fund. You can build your savings while also having access to your money whenever you need it.
Compared to some other accounts, money market accounts give you more freedom to deposit and withdraw your money whenever you want, although there are many that impose limits on the number of withdrawals every month.

Here are three instances when opening a money market account is advantageous to your personal finances:

Yields on MMAs are high and you want your money to outpace inflation.
You’re building your emergency fund.
You want a flexible savings account that’s federally insured in case of a bank failure.

Money market accounts make particularly good sense in such situations as:

Making payments with a check

Some money market accounts let you write checks from the account.

Withdrawing funds using a debit card

Some money market accounts offer a debit card, which can help you access, and deposit, your savings at an ATM.

Planning – and making expenses for – a major event

A money market account that gives you check-writing privileges can help pay for major expenses from your savings. But first check with your bank to see if it allows unlimited payments using checks or if there’s a withdrawal limit.

How to open a money market account

A money market may pay a competitive rate and provide some of the key perks of a checking account. Here’s everything you need to know about opening one.

Learn more

Pros and cons of money market accounts

Some money market accounts have certain features that you won’t find in a savings account. Here’s a look at some of the key advantages and disadvantages of money market accounts.

Pros

You can earn a competitive APY.
You may have check-writing privileges and/or a debit card.
Some money market accounts allow you to withdraw money from an ATM.

Cons

Some savings accounts and CDs might offer higher yielding APYs.
You may be restricted to six withdrawals per statement cycle at certain banks.

Alternatives to money market accounts

High-yield savings account

An account that typically earns a higher yield compared with a traditional savings account (although it doesn’t offer check-writing privileges as with a money market account).

Checking account

An account designed to deposit and access your money, specifically for everyday transactions such as buying goods and services and paying bills.

CDs

A time deposit account that earns a fixed rate of return over a set period of time, with terms typically ranging from three months to five years.

No-penalty CDs

A no-penalty CD helps you earn a fixed yield while still being able to access your money if you need to.

Money market account FAQs

Meet our Bankrate experts

Written by: Matthew Goldberg, Senior Consumer Banking Reporter

Matthew is a senior consumer banking reporter with more than two decades of journalism and financial services expertise, helping readers make informed decisions about their personal finance needs. His banking career includes being a banker in New York City and a bank officer at one of the nation's largest banks. Matthew is currently a member of the Board of Governors at the Society for Advancing Business Editing and Writing (SABEW), chairing its training member engagement committee and is co-chair of its Finance Committee.

Research methodology

Bankrate researches over 100 banks and credit unions, including some of the largest financial institutions, online-only banks, regional banks and credit unions with both open and restrictive membership policies.

To find the best money market accounts, we rated these institutions on their money market account’s APY, fees, minimum deposit requirements, funds access and more.

The highest-rated money market accounts from broadly-available banks and credit unions, with the highest APYs, made our list. Learn more about how we choose the best banking products and our methodology for reviewing banks.

Learn more

Research

Best money market accounts of May 2025 (Up to 4.36% APY )

Best money market accounts and rates for May 2025

Vio Bank

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why Vio Bank?

Pros and cons

CFG Community Bank

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why CFG Community Bank?

Pros and cons

Quontic Bank

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why Quontic Bank?

Pros and cons

Banesco USA

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why Banesco USA?

Pros and cons

Sallie Mae Bank

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why Sallie Mae Bank?

Pros and cons

Western State Bank

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why Western State Bank?

Pros and cons

Ally Bank

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why Ally Bank?

Pros and cons

Discover Bank

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why Discover Bank?

Pros and cons

Bankrate's expertise

Bankrate’s trusted industry knowledge

Recent news on money market rates

What our industry experts are saying

How Bankrate calculates the national average

How to choose a money market account

Get a competitive yield

Confirm the bank has check-writing privileges

Make sure you won’t be paying fees

What to know about money market accounts

Who should get a money market account?

How to open a money market account

Pros and cons of money market accounts

Pros

Cons

Alternatives to money market accounts

Money market account FAQs

Is a money market account safe?

How do money market accounts differ from money market funds?

Why do money market accounts pay higher interest?

Are money market rates fixed?

Are money market accounts taxed?

Meet our Bankrate experts

Research methodology

Banks we monitor

Learn more

Pros and cons of a money market account

Bank ratings and reviews

Average money market rates