Money Market Account
A money market account (MMA) is a hybrid of a savings and checking account at an FDIC-insured bank or credit union. Like a savings account, an MMA pays a (usually) higher APY than basic checking and is FDIC-insured up to $250,000 per depositor, per insured bank, per ownership category. Like a checking account, an MMA typically allows limited check writing, debit card access, and bill pay. Important distinction: a money market **account** is a bank deposit, FDIC-insured. A money market **fund** is a mutual fund, not FDIC-insured, regulated by the SEC. The two are often confused because the names sound nearly identical, but the consumer protections are different.
Current US money market account rates
Typical range across leading online money market accounts. Rates change frequently — verify the current rate at the institution before opening an account.
See top banks →Current rates at these banks may fall outside the range shown above — verify at the institution.
These are widely-recognized banks offering money market accounts. APYCalculator does not earn commissions on links from this site and is not affiliated with any of these institutions.
Why most online savers no longer need both an MMA and an HYSA. The historical advantage of MMAs over savings accounts was check-writing privilege. That advantage has eroded for two reasons. First, ACH transfers from online HYSAs typically settle in 1–3 business days and are free, removing most of the practical need to write a paper check from a savings account. Second, the Federal Reserve suspended Regulation D's six-transactions-per-month savings account withdrawal limit in April 2020, eliminating another reason to prefer an MMA's looser transaction rules. Many online HYSAs now offer the same effective transaction freedom as MMAs without the higher minimum balance requirements.
Where MMAs still make sense. Three cases. (1) Brick-and-mortar bank relationships where the MMA pays meaningfully more than the savings account at the same bank, and the saver values consolidating relationships at one institution. (2) Large balances where the bank's MMA tier structure rewards balances above $25,000 or $100,000 with materially higher APYs than the standard savings account. (3) Frequent check-writing for savings purposes — for example, paying contractors from a designated savings bucket — where you genuinely need physical checks rather than ACH or bill pay.
The tier structure problem. Many MMAs use balance tiers: a base APY below $10,000, a higher APY between $10,000 and $25,000, and the highest "headline" APY only above $25,000 or $100,000. Always compute the effective APY on your actual balance, not the headline number. A 4.75% APY that only applies to balances above $100,000 may earn you 2.50% blended on a $20,000 balance.
MMA vs MMF — a real distinction. MMAs are deposits at a bank; the bank owes you the money, and the FDIC insures the obligation up to $250,000. MMFs are mutual funds that hold short-term debt instruments; you own a share of the fund's assets, no FDIC insurance applies, and (rare but real) the fund's net asset value can drop below $1.00 per share — this is called "breaking the buck." Reserve Primary Fund did this in 2008. MMFs typically pay a higher yield than MMAs for this additional risk.