Guide to Money Market Accounts and Current Interest Rates
Discover the essentials of money market accounts, understanding their interest rates, benefits, and criteria for choosing the right one. Learn about top rates offered by banks in 2018 and important considerations before opening an MMA to maximize your savings and financial growth.
Guide to Money Market Accounts and Current Interest Rates
To understand and evaluate money market rates, it’s essential to grasp what a money market account (MMA) entails. An MMA is a savings account that limits the number of checks you can write each month. The interest earned on your balance is calculated as an annual percentage yield (APY). While MMAs often require a higher minimum balance than standard savings accounts, they typically offer better APYs, making them an attractive option for savers seeking higher returns without sacrificing access.
Is a money market account right for you?
Not everyone favors MMAs because of their restrictions. However, if you want occasional access to your funds and prefer higher yields, an MMA could be suitable. Rates vary among banks, and some offer more competitive APYs. Do not choose an account solely based on interest rates; consider the minimum balance and potential penalties if you fall short. Carefully evaluate the benefits and limitations before opening an account.
Top money market accounts for 2018
Select an account with a favorable APY and minimum balance that fits your financial situation. Rates differ across banks and may involve slight variations in terms. Remember, higher APYs lead to better earnings, especially as interest is compounded periodically and credited quarterly. Comparing rates and balance requirements is crucial before opening an MMA. In 2018, VirtualBank led with a 2.01% APY and a $100 minimum balance. All America Bank and Redneck Bank followed with 2% APY and $500 minimums. Note that rates fluctuate based on economic factors.
