Calculate how much interest your money market account will earn over time. Compare daily, monthly, and annual compounding with optional recurring deposits.
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A money market account (MMA) is an interest-bearing deposit account at a bank or credit union that typically offers higher rates than standard savings accounts. MMAs combine features of checking and savings accounts — earning competitive yields while offering limited check-writing and debit card access. They are FDIC-insured up to $250,000.
A money market account (MMA) is an FDIC-insured bank deposit account. A money market fund is an investment product (mutual fund) that invests in short-term debt securities — it is not FDIC-insured. MMAs are safer; money market funds generally offer higher yields.
The best money market account rates in 2025 range from 4.5% to 5.0% APY at online banks and credit unions. Traditional brick-and-mortar banks often offer significantly lower rates (0.5–1.5%). Always compare using the APY, not the nominal rate.
Many high-yield money market accounts require a minimum balance of $1,000–$10,000 to earn the advertised APY and avoid monthly fees. Online banks often have lower or no minimums.
Yes. Bank money market accounts are FDIC-insured up to $250,000 per depositor, per institution. Credit union MMAs are insured by the NCUA up to the same limit. This makes them one of the safest savings vehicles.
Most MMAs compound interest daily and credit it monthly. Daily compounding produces slightly more than monthly compounding at the same nominal rate. Always compare the APY (Annual Percentage Yield) which accounts for compounding.
You cannot lose money in an FDIC-insured bank MMA as long as your balance stays under the $250,000 insurance limit. This is distinct from money market funds, where — while extremely rare — it is theoretically possible to lose value.