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A money market account combines the features of a checking and savings account. When you open an account, you’ll typically receive an interest rate that beats most standard savings accounts; as well as a debit card or checks. Although, is a money market account right for you? Here we gathered the best five options for you to know.
Table of contents
- 5 Best Money Market Accounts
- Best Money Market Accounts for 2022: Our Top Picks
- Sallie Mae – Top-Tier APY With No Minimum Balance
- TIAA Bank Yield Pledge – An Adjustable APY Helps Keep It Competitive
- BMO Harris Platinum – Solid APY That Requires a High Minimum Balance
- Redneck Bank Mega – A Bank With an Unusual Name That Offers Real Benefits
- Axos Bank High Yield – An Online Bank That Features a High APY and No Minimum Balance Requirements
- Money Market – The Bottom Line
- Quick Questions
5 Best Money Market Accounts
- Sallie Mae Money Market: Competitive APY and no minimum balance
- TIAA Bank Yield Pledge Money Market: Adjustable APY that keeps it among the best
- BMO Harris Platinum Money Market Account: High APY but with a high minimum balance requirement
- Redneck Bank Mega Money Market: One of the highest APYs available
- Axos Bank High Yield Money Market: Tied for highest APY but a significant opening balance is required
Best Money Market Accounts for 2022: Our Top Picks
Sallie Mae – Top-Tier APY With No Minimum Balance
The Sallie Mae Money Market is well-regarded for a variety of reasons. You won’t pay any monthly maintenance fees and there’s no minimum balance.
On top of the lack of fees, you’ll also earn a high APY of 0.55% from this account. When you combine this with Sallie Mae’s online tools and check writing ability, you’ll find it easy to access your funds when you need to.
Due to the high APY and lack of fees, this is one of the best accounts available.
TIAA Bank Yield Pledge – An Adjustable APY Helps Keep It Competitive
The TIAA Bank Yield Pledge Money Market offers a unique feature that other banks don’t match. The Yield Pledge means that every month TIAA adjusts the APY to ensure it’s in the top 5% of competitive accounts.
This allows you to keep your money in one place instead of going APY hunting regularly. As of November 2020, TIAA Bank offers a 0.55% APY for the first year after opening your money market account. After that first year, the rate drops to 0.40% APY. While there’s no minimum balance, you do have to deposit $500 to open the account.
BMO Harris Platinum – Solid APY That Requires a High Minimum Balance
This money market account from BMO Harris currently offers one of the best APYs for consumers. With a minimum balance of $5,000, you earn 0.40% APY.
There’s also no monthly fee attached to the account, so you won’t find your earned interest going towards fees instead of your pocket. However, if your balance falls below $5,000, your APY drops to a paltry 0.01% APY. Also, if you live in a state where physical BMO branches are available, you may see a lesser rate even if you meet the minimum balance requirement.
Redneck Bank Mega – A Bank With an Unusual Name That Offers Real Benefits
While this bank may not win any awards for its name, it offers one of the highest APYs for a money market account available. You can earn 0.60% APY on balances up to $50,000. Accounts with higher balances receive 0.25% APY.
There’s no minimum balance. However, to open an account, you need to make an initial deposit of $500. Once you’ve opened the account, you’ll receive a variety of perks, such as a free VISA debit card and electronic monthly statements.
Though this bank has an unfortunate name, its benefits are very real.
Axos Bank High Yield – An Online Bank That Features a High APY and No Minimum Balance Requirements
Axos is an online bank that passes the savings of its business model onto its customers. When you open a this with Axos Bank, you earn 0.60% APY regardless of the balance. This ties with Redneck Bank for the current highest APY for consumers.
Along with that high-interest yield, you won’t have any monthly maintenance fees or minimum balance requirements. However, you do need an initial deposit of at least $1,000 to open the account. You also have the ability to request a debit card and write checks off the account.
Money Market – The Bottom Line
These accounts offer a great balance of financial liquidity and high-interest yield rates. However, the best rates often require significant opening deposits.
A savings account doesn’t usually allow for debit card purchases or the ability to write checks. However, some high-yield savings accounts may have comparable or better APYs than money market accounts.
If you can find a money market that offers a higher APY than your savings account, it can be advantageous to open one. However, it’s important to check whether the new account contains fees or minimum balances.
Interest rates are on a downward trend as of November 2020. While a solid APY at this time last year was well over 1%, you’ll have difficulty finding that today. Generally, a “good” money market APY is at least 0.40%
Another option is a high yield savings account, check out our guide to the best here.