June 4, 2023

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  • According to the data, the average annual interest rate on money market accounts is 0.14% Federal Deposit Insurance Corporation.
  • The effective interest rate on a money market account may depend on the account balance and bank.
  • As with any other savings account, money market interest rates change over time.

A money market account functions like a savings account—it earns a small amount of interest, helps money grow, and has a monthly withdrawal limit.

The interest rate on your money market account will vary based on several factors, including your balance, the bank you use, and the current interest rate market.

Money Market Rates and High Yield Savings Rates

Interest rates on money market accounts are usually higher than those on regular savings accounts. But among banks that have both high-yield savings accounts and money market options, high-yield savings accounts tend to come out on top.

Average money market interest rate by account balance

Your account balance will affect your interest rate.

According to data from S&P Global, the higher your balance, the higher your interest rate. Here are the average interest rates for six different account balances:

Some money market accounts may have minimum account balances, so make sure the account you are considering is suitable for your balance.

Bank Average Money Market Rate

Each bank sets different interest rates for its money market accounts. Both brick-and-mortar banks and online banks offer money market accounts. Below are the current money market rates offered by several popular banks.

Some banks offer higher interest rates for people who have multiple accounts at one bank. Check with your bank to see if a special relationship rate may apply to your money market account.

Average money market account rate over time

Interest rates on money market accounts may fluctuate over time. Money market interest rates tend to change with the broader economy and the rate set by the Federal Reserve.

according to Data from the Federal Deposit Insurance Corporationaverage money market rates have generally declined since 2009.

In 2022, the Fed will raise interest rates several times. As a result, the average money market account is slowly rising again. According to data from the current average money market rate for accounts with balances below $100,000 is 0.14% APY Federal Deposit Insurance Corporation.

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