Here are the best money market accounts for January 2023

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If you’re a saver who likes to have easy access to your account, a money market account may be ideal for you. A money market account is a type of savings account that usually has a tiered interest rate or easy access to your account through check writing or a debit card.

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Below, you’ll find our picks for the best money market accounts right now. Our top picks are also free of monthly service fees, with the exceptions of CFG Bank and First Internet Bank of Indiana.

CFG Bank waives its fee if you maintain an account balance of $1,000. First Internet Bank of Indiana waives its fee if you maintain an account balance of $4,000.

CFG Bank Money Market Account

Northern Bank Direct Money Market Account

First Internet Bank of Indiana Money Market Account

Sallie Mae Money Market Account

Discover Money Market Account

Ally Money Market Account

Quontic Money Market Account

TIAA Bank Money Market Account

Comparing the best money market accounts of January 2023

CFG Bank High Yield Money Market Account (jump to CFG Bank account details »)

Why it stands out: CFG Bank offers a competitive interest rates on its money market account.

Rate: 1.15% to 1.25% APY APY (Annual Percentage Yield)

Minimum opening deposit: CFG Bank High Yield Money Market Account

What to look out for: You’ll need CFG Bank High Yield Money Market Account to open a money market account with CFG and maintain it. Otherwise, you may not earn competitive interest, and have to pay a $10 monthly service fee.

Northern Bank Direct Money Market Account (jump to Northern Bank Direct account details »)

Why it stands out: Northern Bank Direct will likely good option if you’re searching for a competitive interest rate on a money market account. The account also doesn’t charge monthly service fees.

Rate: Northern Bank Direct Money Market Account APY

Minimum opening deposit: Northern Bank Direct Money Market Account

What to look out for: You’ll need a minimum of $5,000 to open a money market account with Northern Bank Direct. This is pretty steep compared to most financial institutions, which typically require around $1,000 to get a money market account.

First Internet Bank of Indiana Money Market Account (jump to First Internet Bank of Indiana account details » )

Why it stands out: First Internet Bank of Indiana has a tiered interest rate system with competitive APYs. The money market account pays 3.04% APY on account balances $1 million or under and 3.87% APY on account balances over $1 million.

Rate: First Internet Bank of Indiana Money Market Account APY

Minimum opening deposit: First Internet Bank of Indiana Money Market Account

What to look out for: This money market account has a $5 monthly service fee. To waive the fee, you’ll need to maintain at least $4,000 in your account.

Sallie Mae Money Market Account (jump to Sallie Mae account details »)

Why it stands out: Sallie Mae pays a competitive rate, and the bank doesn’t require an opening deposit. Sallie Mae also sends paper checks for you to access your money.

Rate: 1.10% APY APY

Minimum opening deposit: Sallie Mae Money Market Account

What to look out for: There’s no debit card or ATM card included. You will receive paper checks, though.

Discover Money Market Account (jump to Discover account details »)

Why it stands out: The Discover Money Market Account gives you easy access to your money with a debit card and paper checks. You’ll earn 3.20% APY if you have an account balance under $100,000. If you have an account balance over $100,000, the rate increases to 3.25% APY. 

Rate: Discover Money Market Account APY

Minimum opening deposit: Discover Money Market Account

What to look out for: You’ll need at least $2,500 to open this Discover account.  If you’re looking for a money market account that has a lower minimum opening deposit requirement, some of our other top picks let you open an account with $0.

Ally Money Market Account (jump to Ally account details »)

Why it stands out: You can get paper checks and a debit card to make purchases when you open a money market account with Ally, and there’s no minimum deposit. The bank reimburses up to $10 per month in fees charged by out-of-network ATMs.

Rate: 0.50% APY APY

Minimum opening deposit: Ally Money Market Account

What to look out for: If you make more than six withdrawals per month, you’ll pay a $10 fee. (Ally may waive this fee during the COVID-19 pandemic, though.)imburses up to $5 per month in out-of-network ATM fees. But you can find banks that refund more money.

Quontic Money Market Account (jump to Quontic Bank account details »)

Why it stands out: Quontic is offering a competitive interest rate regardless of your account balance.

Rate: Quontic Money Market Account Annual Percentage Yield (APY)

Minimum opening deposit: Quontic Money Market Account

What to look out for: If you use an out-of-network ATM, you won’t be reimbursed for ATM fees.

TIAA Yield Pledge® Money Market Account (jump to TIAA account details »)

Why it stands out:  TIAA Bank has a straightforward money market account that comes with a debit card and paper checks. You’ll receive unlimited out-of-network ATM reimbursements if your balance is at least $5,000, and $15 per month in refunds for lower balances.

Rate: TIAA Yield Pledge® Money Market Account APY

Minimum opening deposit: TIAA Yield Pledge® Money Market Account

What to look out for: The account pays a solid interest rate regardless of your account balance, but other online banks may have money market account with higher interest rates.

Money market accounts that didn’t make the cut and why

Synchrony Money Market Account: Synchrony has a Synchrony Money Market Account minimum opening deposit, but our top picks offer higher rates or offer unique bonuses that make them more appealing. Read the full review of Synchrony Bank here.Premier Members Credit Union Money Market Account: Premier Members Credit Union has a low initial deposit, but our top picks pay more competitive interest rates right now. Read the full review of Premier Members Credit Union here.CIT Bank Money Market Account: Our top picks offer more competitive interest rates right now. Read the full review of CIT Bank here.Affinity Plus Federal Credit Union Superior Money Market Account: Affinity Plus Federal Credit Union has a solid money market account, but you’ll need to meet certain requirements or you’ll only earn 0.10% APY. Our top picks may pay a higher interest rate or have easier requirements for earning the highest rate. Read the full review of Affinity Plus Credit Union here.Axos High Yield Money Market Account: This money market accounts offers both paper checks and a debit card with your account, but its rates are lower than other accounts on our list. Read Insider’s full review of Axos here. NBKC Money Market Account: This is a solid money market account, but its rate isn’t quite as high as what you’ll earn with our top picks. Read Insider’s full review of NBKC here. UFB Elite Money Market Account: While the UFB High Rate Money Market Account has a high interest rate, you’ll need to keep at least $5,000 in your account to avoid a $10 monthly service fee. Our top picks either have no monthly service fees or require a lower minimum account balance. Read Insider’s full review of UFB Direct here.Investors eAccess Money Market Account: This money market account doesn’t require any minimum account balance, but its APY is slightly lower than more competitive money market accounts.Redneck Bank Money Market Account: This is another solid reverse-tiered option, but it requires a Redneck Bank Money Market Account opening deposit, and you’ll need to perform certain transaction requirements each month to earn a high interest rate.Sun East Federal Credit Union Money Market Account: You’ll need maintain an account balance of Sun East Federal Credit Union Money Market Account at Sun East Federal Credit Union, but our top picks either offer higher interest rates or don’t have minimum balance requirements.Pacific National Bank Money Market Account: You’ll need an initial deposit of Pacific National Bank Money Market Account to open this account; you’ll need to maintain a Pacific National Bank Money Market Account balance to avoid monthly fees and $10,000 to earn interest.Prime Alliance Bank Personal Money Market Account (Member FDIC): You’ll earn a high rate with this account, but it doesn’t grant you easy access to your money with checks, an ATM card, or a debit card.

Which banks are the most trustworthy?

The Better Business Bureau measures businesses by looking at responses to customer complaints, honesty in advertising, and transparency about business practices.

Here are the BBB scores for each institution on our list:

InstitutionBBB gradeSallie MaeA+AllyADiscoverA+Northern Bank DirectA+CFG BankFQuontic BankA+First Internet Bank of IndianaA+TIAA BankA+

CFG Bank has the lowest BBB grade because they haven’t responded to customer complaints filed on the BBB website. Meanwhile, Ally received an A rating from the BBB because it has three unresolved complaints. 

A strong BBB rating does not guarantee that you’ll have a smooth relationship with a company, though. You still may want to ask friends and family about their experiences to see if a bank is right for you. 

TIAA Bank is the only bank on our list that’s been involved in a recent public controversy.

The bank’s most recent public scandal was its firing of the CEO, Blake Wilson, in 2019. TIAA fired Wilson for violating policies, but it didn’t specify which policies. But considering the company fired a leader for unacceptable practices, you may decide you feel comfortable banking with TIAA.

Why trust our recommendations?

Personal Finance Insider’s mission is to help smart people make the best decisions with their money. We understand that “best” is often subjective, so we noted the advantages and disadvantages of each account. We spent hours reviewing the features and fine print of various products so you don’t have to.

Methodology: How did we choose the best money market accounts?

There are a lot of money market accounts out there. Through our research, we’ve found that the best money market accounts are offered by banks with a strong online presence and mobile access.

We reviewed money market accounts at nearly two dozen institutions to identify the strongest options. 

While interest rates are an important aspect of any money market account, we also considered minimum deposit and balance requirements, overdraft and excess transaction fees, ability to access funds, and any other standout features. 

Personal Finance Insider’s mission is to help smart people make the best decisions with their money. We understand that “best” is often subjective, so in addition to highlighting the clear benefits of a financial product or account — a high APY, for example — we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don’t have to.

Frequently asked questions

Which is better, a money market account or a high-yield savings account?

Money market accounts typically make it easier to access your money than high-yield savings accounts. Many come with check-writing privileges, debit cards you can use to make purchases, or ATM cards for withdrawing cash. Money market accounts and high-yield savings accounts both offer more interest and nearly as much flexibility as traditional checking or savings accounts. 

Are you on the fence about whether to open a money market or high-yield savings account? You could choose a company and compare its money market and savings accounts. One may have a higher rate, lower initial deposit, or lower monthly fee. 

You may want to work with a specific bank or credit union, but it only offers either a high-yield savings account or a money market account, not both. This limitation could help you make a decision, too.

Are money market accounts worth it?

Yes — a money market account has very few downsides, if any. There’s no risk that you’ll lose money, your account is insured by the FDIC or NCUA (usually up to $250,000, but up to $1 million in some cases), and it gives you a shot at beating inflation.

The only time a money market account may not be worth it is if you’re paying excessive maintenance fees that eat into your interest payments or you find yourself restricted by the monthly transfer limit or time it takes for your money to get to your checking account.

What is the average rate for a money market account?

As of December 2022, the national average APY on money market accounts is 0.38% according to the FDIC. Online banks usually offer a higher interest rate on money market accounts, though. The most competitive money market accounts pay 3.00% APY or more.

Rates fluctuate along with the federal funds rate, so banks that offer the highest APY now might not down the road, and ones with lower rates now could hike their rates later.

How often do money market account rates change?

Interest rates on money market accounts closely follow the federal funds rate. That is to say, rates are variable and can change multiple times per year at the whim of the Federal Reserve. 

The Fed meets eight times a year and decides whether to increase, decrease, or maintain interest rates. If the Fed cuts rates, the APY on your savings account can drop within days. When rates are lower, you won’t earn as much interest on your savings. But that doesn’t mean you shouldn’t save at all. When interest rates inevitably go back up, you’ll see a greater return on your money than if you started from scratch. 

The Fed raised interest rates in 2022, and savings interest rates have slowly been going up, too. Even if they were to drop, however, it’s best practice to keep saving. That way, when rates inevitably do go back up, you’ll be earning interest on a larger amount of principal.

Experts’ advice on choosing the best account for you

To learn more about what makes a good money market account and how to choose the best fit, four experts weighed in:

Insider

We’re focusing on what will make a money market account most useful, including APY, access to your money, and more.

Tania Brown, certified financial planner at SaverLifeRoger Ma, certified financial planner with lifelaidout® and author of “Work Your Money, Not Your Life”Mykail James, MBA, certified financial education instructor, BoujieBudgets.comLaura Grace Tarpley, associate editor of banking, Personal Finance Insider

Here’s what they had to say about money market accounts. (Some text may be lightly edited for clarity.)

What makes a money market account good or not good?

Laura Grace Tarpley, Personal Finance Insider:

“You might like a money market account if the APY is higher than what you’ll find with a high-yield savings account. Money market accounts should also give you a way to access your funds, whether it’s a debit card, ATM card, paper checks, or access to Zelle. Whichever one the bank offers, make sure it’s the right fit. For example, if a bank only offers paper checks, but you make all your payments digitally, then that money market account probably isn’t for you.”

Roger Ma, CFP:

“I don’t really recommend a money market accounts for parking your money. I don’t know if their fees are really that competitive versus high-yield savings accounts. For most people, I think what makes sense is a high-yield savings account for your emergency fund and any short-term goals.”

How should someone decide whether to put their money in a high-yield savings account, money market account, or CD?

Tania Brown, CFP:

“So I guess we’ll start off with how much money you want to put in and the level of transactions you want to have. If you want to have any transactions, that automatically takes out CDs. Then you’re stuck between the high-yield savings and the money market account.”

Mykail James, CFEI:

“How soon do you need the money? What kind of access do you need to it? And if you want your money to grow and you want to keep temptation away, then I would put it in a CD.”

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