Average Money Market Account Interest Rates
Average Money Market Account Interest Rates
As of March 2022, the Federal Deposit Insurance Corporation (FDIC) reported a national average of 0.08% APY on money market accounts.
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.
Money market account 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 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. | |
|---|---|
| U.S. Bank | 0.01% APY on all balances |
| PNC Bank | 0.02% APY on all balances with standard rates |
| Truist Bank | 0.01% APY on all balances |
| TD Bank | 0.01% APY on balances under $2,000; 0.02% APY on balances of at least $2,000 but under $25,000; 0.03% APY on balances of at least $25,000 |
| Fifth Third Bank | 0.01% APY on all balances |
Above, you'll find that rates at many banks remain below average, even with higher balances.
A few banks 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.
Online money market account rates
Online-only banks offer higher average rates on savings and high-yield checking accounts compared with 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 | |
|---|---|
| Vio Bank | 0.8% APY on all balances |
| Prime Alliance Bank | 0.8% APY on all balances |
| Ally Bank | 0.6% APY on all balances |
| Quontic Bank | 0.4% APY on balances under $5,000; 0.5% APY on balances of at least $5,000 but under $150,000; 0.6% APY on balances of $150,000 or more |
| Discover Bank | 0.5% APY on balances under $100,000; 0.55% APY on balances of $100,000 or more |
Online-only banks tend to carry far fewer products than traditional banks, and each of the banks listed above offers just one money market account each. However, it's clear that most of them have higher rates than the 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.