Average Money Market Rates 2021

Average Money Market Rates 2021

As of March 22, 2021, the Federal Deposit Insurance Corporation (FDIC) reported a national average of 0.06% APY on money market accounts with deposits under $100,000. For accounts with deposits over $100,000, the average was 0.11% APY.

Money market accounts typically offer better rates than regular savings accounts, but this is largely because they require much larger opening deposits. In this article, we cover the money market rates offered at some of the largest banks in the U.S., as well as through relationship rates and online accounts.

Money market rates at largest U.S. banks

We looked at some of the largest banks in the U.S. that offer money market accounts to see how their money market rates compare to the current average reported by the FDIC. Here’s what we found.

Money market account rates at the largest banks in the U.S.
$0.01 -$10,000$10,000 -$25,000$25,000 -$50,000$50,000- $100,000$100,000+
Citizens Bank0.01%0.01%0.01%0.01%0.01%
Fifth Third Bank0.01%0.01%0.01%0.01%0.01%
Huntington National Bank0.00%0.00%0.05%0.05%0.05%
KeyBank0.01%0.01%0.01%0.01%0.01%
M&T Bank0.02%0.02%0.02%0.02%0.02%
PNC Bank0.02%0.02%0.02%0.02%0.02%
Regions Bank0.01%0.01%0.01%0.01%0.01%
TD Bank0.01% - 0.03%0.03%0.05%0.05%0.05%
US Bank0.01%0.01%0.01%0.01%0.01%

Above, you'll find that rates at many banks remain below average, even with higher balances. Citizens Bank, for instance, offers the same 0.01% APY for money market accounts with $1 as it does for accounts with over $100,000.

A few banks do offer more than one money market account, each of which may offer a different interest rate for the same balance. However, these accounts will also differ in their fees and waiver requirements, and some may only be available if you also open a checking account at the same bank.

Relationship rates for money market accounts

One way to boost the rates you earn on a money market balance is by seeking out banks that offer boosted "relationship" rates for customers who have more than one account at the same institution.

The table below lists some of the relationship rates you can expect to see at major banks.

Relationship rates for money market accounts at major banks
$0.01 -$10,000$10,000 -$25,000$25,000 -$50,000$50,000 -$100,000$100,000+
Citizens Bank0.03%0.03%0.03%0.03%0.03%
Fifth Third Bank0.02%0.02%0.02%0.02%0.02%
Huntington National Bank0.00%0.00%0.05% - 0.08%0.05% - 0.08%0.05% - 0.08%
PNC Bank0.03%-0.05%0.03% - 0.05%0.03% - 0.05%0.03% - 0.05%0.03% - 0.05%
TD Bank0.01% - 0.05%0.05%0.10%0.10%0.10%

The rates above are only available to bank customers who link a checking account to their money market accounts. We've listed a few banks as examples of typical relationship rate policies:

Fifth Third Bank: Any Fifth Third checking account other than a Basic Checking or Express Banking account will double your money market account rate, but Fifth Third's rates may be lower if you live in certain areas.

PNC Bank: Linking a checking account changes the rate to between 0.03% and 0.05% on balances up to $100,000. This is up from the standard rate of 0.02%.

TD Bank: TD Bank's relationship rate requires you to arrange an automatic transfer of $50 or more from a linked TD Bank checking account. On balances of at least $25,000, this doubles your interest rate. Lower balances get a better rate as well.

Online money market accounts

Online-only banks offer higher average rates on savings accounts and high-yield checking compared to brick-and-mortar banks, so it's no surprise that their money market accounts offer better APYs as well.

Money market account rates at major online-only banks
$0.01$10$1,500$10,000$100,000
ableBanking0.50%0.50%0.50%0.50%0.50%
Ally Bank0.50%0.50%0.50%0.50%0.50%
Synchrony Bank0.35%0.35%0.35%0.35%0.35%
Discover Bank0.30%0.30%0.30%0.30%0.35%
Axos Bank0.60%0.60%0.60%0.60%0.60%
Capital One0.30%0.30%0.30%0.30%0.30%
Radius BankN/A0.05%0.05%0.10%0.10%
TIAA Bank0.40%0.40%0.40%0.40%0.40%

Online-only banks do tend to carry far fewer products than traditional banks, and each of the banks listed above offer just one money market account each. However, it's clear that most of them have higher rates than the premium money market options at a brick-and-mortar bank.

You should also be comparing these rates to those found on the savings accounts that are also provided at online-only banks. The average APY on such accounts tend to be similar or better than online money market rates.

Other important details about money market account rates

In general, we found that money market accounts at standard brick-and-mortar banks are similar to regular savings accounts, except that they often offer better rates at the cost of higher account fees and higher minimum balance requirements. However, the opposite is true online: The interest rates on money market accounts at online-only banks tend to be higher than those at brick-and-mortar banks, but lower than rates for online savings accounts.

Relationship rates are one of the big benefits to opening a brick-and-mortar money market account. If you already have a checking account at a traditional bank, it might be more beneficial to open a money market account there than at a new bank, since you'd have to open an additional checking account to improve on the money market rate.

Finally, it's important to remember that checking accounts come with their own fees and requirements, which may cancel out the interest you earn if you don't have the right balance or banking habits to meet the fee waiver conditions.