What Is a Money Market Account? How Does It Work?

A money market account is a type of bank account that pays a better interest rate than what you can earn on the money in your checking account (which typically pays no interest). That makes it a great place to move some of the funds that you don't need on an everyday basis, boosting the amount of interest you earn over the course of each month. Like a savings or checking account, money market accounts are liquid . That means you have the freedom to deposit and withdraw funds more or less as you choose. But unlike a savings account, money market accounts come with the option to write checks, making them a sort of hybrid between savings and checking accounts.

Are These Top Money Market Accounts FDIC Insured?

Every money market account in our rankings is federally insured—either by the FDIC for banks or the NCUA for credit unions—with up to $250,000 covered per account holder and per institution. FDIC and NCUA insurance works exactly the same regardless of the size of the institution. So banking with a bigger or smaller bank does not change your risk for deposits up to $250,000.

Can I Use a Money Market Account as My Checking Account?

A money market generally isn't a substitute for your checking account because some money market accounts limit how many transactions you can make in a month. In addition, not all money market accounts offer ATM or debit cards. Though the federal regulation limiting withdrawals to six per month was suspended in 2020 , many banks and credit unions still impose withdrawal limits, because reducing the transactional costs of these accounts is what enables them to offer higher interest rates. (Note, however, that ATM and in-branch withdrawals are always unlimited.) Some money market accounts do offer unlimited withdrawals of all types, so if that's important to you, be sure to research account features before making a final choice.

Will My Money Market Account Rate Change?

Yes, the interest rates on money market and savings accounts can change at any time, and without notice. Currently, rates are at record levels due to the Fed's current rate-hike campaign. But that could soon come to an end, and when the Fed begins lowering rates, money market and savings account rates will also decline. If you instead want to lock in a fixed interest rate on money you won't need for a while, one of the top-paying certificates of deposit (CDs) is a great option right now.

Are Online Banks Safe?

Many online banks you encounter in our rankings of the best money market, savings , and CD accounts are actually online divisions of existing brick-and-mortar banks. If the parent bank is FDIC-insured, then the online division is too. Some internet-only banks do exist. But not to worry: Online banks can carry the same FDIC coverage as a physical bank. So if the online bank's website says "FDIC member" or sports the FDIC logo, your deposits there are protected up to $250,000 in exactly the same fashion as at a brick-and-mortar bank.

Best Money Market Account Rates for November 2023

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Brilliant Bank, Surge Money Market – 5.35% APY

Minimum initial deposit: $1,000
Minimum ongoing balance: Any amount
Monthly fee: None with $2,000 balance; otherwise $10/month
ATM card available: Yes
Debit card available: Yes
Withdrawals allowed per month: Unlimited
Checking accounts available: Yes
About: Brilliant Bank is an online division of Equity Bank, which has been an FDIC member since 1985 and has more than 60 branches across Arkansas, Kansas, Missouri, and Oklahoma.

Note: Online accounts from Brilliant Bank are not available to residents of Arkansas, Kansas, Missouri, and Oklahoma.

Note: This account will pay its top APY on a maximum balance of $500,000. Amounts over that will pay a significantly lower APY.

UFB Direct, Money Market Account – 5.25% APY

Minimum initial deposit: $0
Minimum ongoing balance: Any amount
Monthly fee: None with a $5,000 balance; otherwise, $10/month
ATM card available: Yes
Debit card available: Yes
Withdrawals allowed per month: Unlimited
Checking accounts available: No
About: UFB Direct is an online banking portal of Axos Bank, which has branches in San Diego and Las Vegas. Axos has been FDIC-insured since 2000.

Republic Bank of Chicago, Digital Money Market – 5.21% APY

Minimum initial deposit: $2,500
Minimum ongoing balance: Any amount
Monthly fee: None with a $2,500 balance; otherwise, $25/month
ATM card available: No
Debit card available: No
Withdrawals allowed per month: Unlimited
Checking accounts available: Yes
About: Republic Bank of Chicago has 19 locations in the Chicago area. FDIC-insured since 1964, it is headquartered in Oak Brook, Illinois.

Note: The Digital Money Market account is not available to customers in Illinois, Indiana, Iowa, or Michigan.

All America Bank, Mega Money Market Checking – 5.05% APY

Minimum initial deposit: $500
Minimum ongoing balance: Any amount
Monthly fee: None
ATM card available: Yes
Debit card available: Yes
Withdrawals allowed per month: 6, with a fee of $5 each after that
Checking accounts available: Yes
About: FDIC-insured since 1969, All America Bank operates branches in Oklahoma, while serving nationwide customers online.

Note: This account will pay its top APY on a maximum balance of $100,000. Amounts over that will pay a significantly lower APY.

Redneck Bank, Mega Money Market Checking – 5.05% APY

Minimum initial deposit: $500
Minimum ongoing balance: Any amount
Monthly fee: None
ATM card available: Yes
Debit card available: Yes
Withdrawals allowed per month: Unlimited
Checking accounts available: No
About: Redneck Bank is an online division of All America Bank, which has been an FDIC member since 1969, with physical branches in Oklahoma.

Note: This account will pay its top APY on a maximum balance of $100,000. Amounts over that will pay a significantly lower APY.

EverBank (formerly TIAA Bank), Yield Pledge Money Market – 5.00% APY

Minimum initial deposit: $0
Minimum ongoing balance: Any amount
Monthly fee: None
ATM card available: Yes
Debit card available: Yes
Withdrawals allowed per month: Unlimited
Checking accounts available: Yes
About: Complementing its massive retirement account business, EverBank (formerly TIAA Bank) serves nationwide customers online and operates brick-and-mortar branches in Florida. It has been FDIC insured since 1998.

Note: The APY on this account is a 1-year promotional rate, offered for your first year after opening the account.

Merchants Bank of Indiana, Money Market Savings – 5.00% APY

Minimum initial deposit: $50
Minimum ongoing balance: Any amount
Monthly fee: None
ATM card available: No
Debit card available: No
Withdrawals allowed per month: 6, with a fee of $2 each after that
Checking accounts available: Not available online
About: FDIC-insured since 1934, Merchants Bank of Indiana operates branches in the greater Indianapolis area, while serving online customers across the country.

Quontic Bank, Money Market Account – 5.00% APY

Minimum initial deposit: $100
Minimum ongoing balance: Any amount
Monthly fee: None
ATM card available: No
Debit card available: Yes
Withdrawals allowed per month: 6, with a fee of $10 each after that
Checking accounts available: Yes
About: Quontic Bank has branches in New York and Florida, and offers online banking products to customers nationwide. Quontic has been an FDIC member since 2005.

Northern Bank Direct, Money Market Premier – 4.95% APY

Minimum initial deposit: $5,000
Minimum ongoing balance: Any amount
Monthly fee: None
ATM card available: Yes
Debit card available: No
Withdrawals allowed per month: Unlimited
Checking accounts available: No
About: FDIC-insured since 1960, Northern Bank serves online customers across the country with Northern Bank Direct, while also operating branches in Massachusetts.

First Capital Bank, Personal Money Market Checking – 4.85% APY

Minimum initial deposit: $1,000
Minimum ongoing balance: Any amount
Monthly fee: None with $1,000 balance; otherwise $10/month
ATM card available: Yes
Debit card available: Yes
Withdrawals allowed per month: 6 ($10 each after 6)
Checking accounts available: Yes
About: Headquartered in Charleston, South Carolina, First Capital dates back to 1999. It has four locations in South Carolina and North Carolina and serves customers nationwide through online and mobile banking.

Sallie Mae Bank, Money Market Account – 4.75% APY

Minimum initial deposit: $0
Minimum ongoing balance: Any amount
Monthly fee: None
ATM card available: No
Debit card available: No
Withdrawals allowed per month: Unlimited
Checking accounts available: No
About: Alongside its massive student lending operation, Sallie Mae Bank offers online banking products to customers nationwide, with FDIC insurance coverage since 2005.

Prime Alliance Bank, Personal Money Market Account – 4.50% APY

Minimum initial deposit: $0
Minimum ongoing balance: Any amount
Monthly fee: None
ATM card available: No
Debit card available: No
Withdrawals allowed per month: 6, with a fee of $25 each after that
Checking accounts available: Yes
About: FDIC-insured since 2004, Prime Alliance serves customers at its location in Woods Cross, Utah, as well as nationwide through its online portal.

U.S. Bank, Elite Money Market Account – 4.50% APY

Minimum initial deposit: $100
Minimum ongoing balance: $25,000 to earn stated APY
Monthly fee: None
ATM card available: Yes
Debit card available: No
Withdrawals allowed per month: Unlimited
Checking accounts available: Yes
About: FDIC-insured since 1934, U.S. Bank is the fifth-largest bank in the country, with more than 2,000 branches in 28 states.

Ally Bank, Money Market Account – 4.40% APY

Minimum initial deposit: $0
Minimum ongoing balance: Any amount
Monthly fee: None
ATM card available: Yes
Debit card available: Yes
Withdrawals allowed per month: 6, with a fee of $10 each after that
Checking accounts available: Yes
About: One of the nation's largest online-only banks, and the 20th largest consumer bank in the U.S., Ally has been FDIC-insured since 2004.

Presidential Bank, Money Market Advantage Checking – 4.37% APY

Minimum initial deposit: $25,000
Minimum ongoing balance: $25,000 to earn stated APY
Monthly fee: None with $25,000 balance; otherwise $5/month
ATM card available: Yes
Debit card available: Yes
Withdrawals allowed per month: Unlimited
Checking accounts available: Yes
About: Based in Bethesda, Maryland, Presidential Bank operates branches in the greater Washington, D.C. metro area. It has been an FDIC member since 1985.

For money you know you won't need access to for a while, also consider one of the options in our daily ranking of the best nationwide CDs. You may be able to earn a higher APY than with a savings or money market account, and your rate will be locked for the full duration of the CD term.

Pros and Cons of Money Market Accounts

Pros

Pays interest on your balance
Allows withdrawals and deposits when you like
Extremely safe, with virtually no risk
If rates rise, your APY could increase

Cons

Scoring a high APY may require opening an account at another bank
Easy access to your money can make it tempting to spend
If rates drop, your APY could be lowered

Pros Explained

Pays interest on your balance: Unlike a checking account, your balance in a money market will earn an annual percentage yield (APY), usually paid to you at the end of each monthly statement cycle.
Allows withdrawals and deposits when you like: You can deposit money into a money market account at any time, and you can generally withdraw it when you like. Some accounts limit your withdrawals to six per month, but many accounts no longer have this restriction.
Extremely safe, with virtually no risk: You cannot lose money on a money market account, and if you open it at an FDIC-insured bank or NCUA-insured credit union, your deposits are federally insured on the off chance that the institution fails.
If rates rise, your APY could increase: Like a savings account, money market accounts pay a variable rate, which means the APY may rise when interest rates are on an upswing.

Cons Explained

Scoring a high yield may require opening an account at another bank: To earn a leading rate on a money market account, you need to shop around. And the odds are high that scoring a top rate will require opening your account at a bank different than where you have your primary checking account.
Easy access to your money can make it tempting to spend it: Because you can withdraw funds from a money market at any time, there is little to stop the temptation of pulling out money and spending it.
If rates drop, your APY could be lowered: When interest rates are dropping, the rate on your money market account is likely to be reduced.

Tip

If you've never opened an account somewhere other than your primary bank or credit union, you may worry that top-paying small institutions or online-only banks are riskier, or that it will be inconvenient. Fortunately, your funds are as protected as they are at any federally insured institution, regardless of size or whether it has branches. And though transferring funds between institutions can take one to three days, today's online banking systems make transfers very easy.

Alternatives to Money Market Accounts

Here are a few additional options to consider instead of, or in addition to, putting funds in a money market account.

High-Yield Savings Accounts

Savings accounts and money market accounts are fairly interchangeable, with the only specific difference being that money market accounts offer check-writing. If you don't care so much about having paper checks you can write from your savings, then it's smart to also shop the best high-yield savings accounts, as they often pay higher APYs than the best money market accounts.

Warning

Don't assume that because an account has the words "money market" in its name that it is a true money market account with check-writing privileges. In recent years, financial institutions have started to use the phrase "money market" as a marketing term, sometimes applied to accounts with no check-writing abilities and therefore they are essentially high-yield savings accounts.

Certificates of Deposit (CDs)

If you know you can live without a portion of your savings for a number of months or years, you stand to earn more by investing in a certificate of deposit (CD). That's because banks and credit unions typically offer a higher APY on CDs in exchange for your agreement that you'll keep the funds in the CD until its maturity date.

The other advantage of a CD over a money market account is that its rate is fixed, not variable. So if interest rates drop in the future, your money market rate will drop as well, but a CD rate is locked for the full CD term. Additionally, because withdrawing CD funds early will trigger a penalty, CDs can be a useful tool for thwarting the temptation to spend your savings.

U.S. Savings Bonds and Treasuries

Another option for your cash savings is U.S. savings bonds. EE bonds offer a fixed interest rate that you'll know at the time of making your deposit decision, while I bonds offer a rate that changes every six months based on current inflation levels (hence, the name I bonds). These investments are exceptionally safe, but note that they do not, for any reason, allow a withdrawal within the first 12 months.

You could also consider a U.S. Treasury bill. T-bills allow you to lend money to the U.S. government for a short, fixed amount of time. Considered one of the safest investments in the world, T-bills offer durations ranging from four weeks to one year.

Frequently Asked Questions

What Is a Money Market Account? How Does It Work?

A money market account is a type of bank account that pays a better interest rate than what you can earn on the money in your checking account (which typically pays no interest). That makes it a great place to move some of the funds that you don't need on an everyday basis, boosting the amount of interest you earn over the course of each month.
Like a savings or checking account, money market accounts are liquid. That means you have the freedom to deposit and withdraw funds more or less as you choose. But unlike a savings account, money market accounts come with the option to write checks, making them a sort of hybrid between savings and checking accounts.
Are These Top Money Market Accounts FDIC Insured?

Every money market account in our rankings is federally insured—either by the FDIC for banks or the NCUA for credit unions—with up to $250,000 covered per account holder and per institution. FDIC and NCUA insurance works exactly the same regardless of the size of the institution. So banking with a bigger or smaller bank does not change your risk for deposits up to $250,000.
Can I Use a Money Market Account as My Checking Account?

A money market generally isn't a substitute for your checking account because some money market accounts limit how many transactions you can make in a month. In addition, not all money market accounts offer ATM or debit cards.
Though the federal regulation limiting withdrawals to six per month was suspended in 2020, many banks and credit unions still impose withdrawal limits, because reducing the transactional costs of these accounts is what enables them to offer higher interest rates. (Note, however, that ATM and in-branch withdrawals are always unlimited.)
Some money market accounts do offer unlimited withdrawals of all types, so if that's important to you, be sure to research account features before making a final choice.
Will My Money Market Account Rate Change?

Yes, the interest rates on money market and savings accounts can change at any time, and without notice. Currently, rates are at record levels due to the Fed's current rate-hike campaign. But that could soon come to an end, and when the Fed begins lowering rates, money market and savings account rates will also decline.
If you instead want to lock in a fixed interest rate on money you won't need for a while, one of the top-paying certificates of deposit (CDs) is a great option right now.
Are Online Banks Safe?

Many online banks you encounter in our rankings of the best money market, savings, and CD accounts are actually online divisions of existing brick-and-mortar banks. If the parent bank is FDIC-insured, then the online division is too.
Some internet-only banks do exist. But not to worry: Online banks can carry the same FDIC coverage as a physical bank. So if the online bank's website says "FDIC member" or sports the FDIC logo, your deposits there are protected up to $250,000 in exactly the same fashion as at a brick-and-mortar bank.

Rate Collection Methodology

Every business day, Investopedia tracks the rate data of more than 60 banks and credit unions that offer money market accounts to customers nationwide. We determine daily rankings of the top-paying money accounts. To qualify for our list, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account's minimum initial deposit must not exceed $25,000. The account also must allow check-writing.

Banks and credit unions must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don't meet other eligibility criteria (e.g., you don't live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. If the account is accessible only through a mobile app, we require that the app be available on both the iOS and Android platforms.

For more about how we choose the best money market accounts, read our full methodology.

Best Money Market Account Rates for November 2023—Up to 5.35%

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