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The average money market interest rate leaves checking and savings accounts in the dust, but a high-yield savings account could earn even more

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  • The average money market interest rate is .08% APY for accounts under $100,000, according to data from the FDIC. 
  • However, the actual interest rate on your money market account will vary based on several factors, including your account balance and the bank you use.
  • Like any other savings account, money market interest rates change over time. Interest rates on money market accounts have dropped over the past 10 years, but have risen slightly since 2018. 
  • See Business Insider's picks for the best money market accounts of 2020 »

The average money market interest rate is .08% APY, according to data from the FDIC. 

A money market account functions like a savings account — it earns a small amount of interest and can help money grow, and has monthly limits on withdrawals. Like in a savings account, money market accounts keep cash liquid and readily available. While money market accounts act similarly to both high-yield savings accounts and traditional savings accounts, they may not have the highest interest rates available. In some cases, a high-yield savings account is a better option. 

Your money market account's interest rate will vary based on several factors, including the balance, which bank you use, and the current interest rate market.

  • Money market interest rates vs. high-yield savings interest rates
  • Average money market rates by account balance
  • Average money market rate by bank
  • Average money market account rate over time

Money market interest rates vs. high-yield savings interest rates

Money market accounts will typically have higher interest rates than the average savings account's interest rate. But, among banks that have both high-yield savings accounts and money market options, high-yield savings accounts often come out on top.

Bank Current money market interest rate Current high-yield savings interest rate
Ally 0.50% on all balance tiers 0.60% APY
Synchrony 0.50% APY 0.65% APY
CIT Bank 0.60% APY 0.31% to 0.55% APY
Discover 0.45% – 0.50% APY 0.60% APY
PNC Bank 0.02% to 0.15% APY 0.80% APY
PenFed Credit Union 0.05% – 0.15% APY 0.60% APY

Average money market rates by account balance

Your account's balance will influence 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 across six different account balances:

Account balance Average APY High APY
$2,500 .08% 2.60%
$10,000 .10% 1.75%
$25,000 .12% 1.75%
$50,000 .14% 1.75%
$100,000 .18% 2.25%
$250,000 .20% 2.25%

Some money market accounts could have a minimum account balance, so make sure that the account you're considering fits your balance. 

Average money market rate by bank

Each bank sets different rates for its money market accounts. Money market accounts are offered at both brick and mortar banks and online banks. Here are current money market interest rates offered by several popular banks. 

Bank  Money market interest rate
Ally Money Market Account 0.50% on all balance tiers
Synchrony Money Market Account 0.50% APY
CIT Bank Money Market Account 0.60% APY
Discover Money Market Account 0.45% – 0.50% APY
Huntington Relationship Money Market Account 0.05% to 0.20% APY
PenFed Money Market Savings 0.05% – 0.15% APY
Sallie Mae Money Market Account 0.70% APY
PNC Premiere Money Market Account 0.02% to 0.15% APY

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

Average money market account rate over time

Like a high-yield savings account, a money market account's interest rate will almost certainly change with time. Money market interest rates tend to change with the overall economy, and interest rates set by the Federal Reserve. As of October 2020, the average money market interest rate was at .08%, down from .14% in September.

Similarly, the average money market interest rate has changed over the past 12 years, according to data from the FDIC. 

Remember that the bank that has the highest interest when you open your account may not always have the highest rate. With interest rates low right now, the best way to grow your savings is slow and steady saving, especially when using automatic deposits to increase your balance over time. 

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