Best Money Market Accounts of 2021: Our Top Picks
Here are our top choices for money market accounts (MMAs) this year. Our list was determined by the interest rates and features offered on each account.
How to Choose the Right Money Market Account
On the surface, a money market account might look identical to a savings account. After all, the interest rates are usually very similar, the account features are the same, and you’re bound to the federal maximum of six withdrawals in a given statement cycle. However, there’s a big difference between MMAs and savings accounts: MMAs have the capability for check writing and/or debit card purchasing.
If you want to earn enviable interest on your savings while also having flexible access to those funds when you need it most, an MMA might be right for you. Your funds will still be protected and you’ll have many of the same withdrawal, deposit, and account management features. However, if you want to make a debit card purchase from your savings, withdraw cash on the go, or even utilize online bill-pay, the right MMA can do that.
Deciding which money market account to choose can be tricky. You want to avoid fees where you can while also maximizing returns on your specific balance. If you’re an on-the-go banking customer, a mobile app (especially with e-check deposit) is a lifesaver. And, for some, having access to local bank branches could be imperative.
Here’s a look at eight of our favorite money market accounts for this year, and why each bank made the list. All of the banks shown here are FDIC-insured and all of them are online banks in some capacity. Oh, and all eight offer returns that are well above the national average.
1Sallie Mae
When you think of Sallie Mae, you probably think first of student loans. So, you might be surprised to learn that this education lending bank also offers money market accounts. Not only that, but they’re also some of the best available, boasting totally free accounts with a competitive interest rate.
- Minimum money market account deposit: $0
- Current interest rate: 0.50% APY compounded daily, no matter your balance (as of October 11, 2021)
- Monthly maintenance fees: None
- Minimum balance required: None
- ATM card provided? ATM debit cards are not available with this account
- Checks provided? You can order free checks when you open your account; subsequent check orders are provided in increments of 25
- How to deposit funds into your MMA: Sallie Mae e-deposit (mobile check deposit), direct deposit, ACH transfer, or send a check by mail for deposit
- How to withdraw funds from your MMA: ACH transfer, write a check
- Mobile app offered? No
- Mobile check deposit available? Yes, through Sallie Mae e-deposit
There are no Sallie Mae banking branches, for those who like to conduct transactions or get help in person. However, their online platform allows you account access 24/7, and customer service is available to help over the phone Monday through Friday.
2CIT Bank
Another free money market account option comes from CIT Bank. The interest rate offered is substantially larger than the national average, and there’s a low opening deposit requirement on the account.
- Minimum money market account deposit: $100
- Current interest rate: 1.85%, regardless of balance (as of October 11, 2021)
- Monthly maintenance fees: None
- Minimum balance required: None
- ATM card provided? ATM/debit cards are not available with the money market account. However, a bill-pay option is in the works, and funds can currently be transferred P2P through the People Pay system
- Checks provided? Checks are not provided with the CIT Bank money market account
- How to deposit funds into your MMA: Transfer from an existing CIT Bank account, ACH transfer from an external bank account, or send a check by mail for deposit
- How to withdraw funds from your MMA: Transfer to an existing CIT Bank account, ACH transfer to an external bank account, transfer to someone else via the People Pay (P2P) system, or pay bills using bill-pay (coming soon)
- Mobile app offered? No
- Mobile check deposit available? No
CIT Bank is an online bank and, as such, there are no local branch locations to utilize.
3Discover
A free money market account with an excellent interest rate, free ATM debit cards (and free expedited replacements), and no longer charging fees on deposit accounts (such as an NSF or excessive transaction fee)? If that all appeals to you, you might want to consider a money market account from Discover.
- Minimum money market account deposit: $2,500
- Current interest rate: 0.30% APY for balances under $100,000; 0.35% APY for balances $100,000+ (as of October 11, 2021)
- Monthly maintenance fees: $0
- Minimum balance required: $2,500 average daily balance required, but no fees are charged if you drop below this number
- ATM card provided? Yes
- Checks provided? Yes
- How to deposit funds into your MMA: Transfer from an existing Discover account, ACH transfer from an external bank account, mobile check deposit, direct deposit, mail in a check for deposit
- How to withdraw funds from your MMA: Transfer to an existing Discover bank account, ACH transfer to an external bank account, ATM cash withdrawals, debit card purchases at participating retailers, write a check from your account, use online bill pay, request an official bank check to be mailed to you
- Mobile app offered? Yes
- Mobile check deposit available? Yes
4Capital One 360
If you’re looking to save a little more, you can still net one of the best MMA interest rates around with Capital One 360. The best thing about this bank, though is the flexibility. Not only can you get all of your banking needs met with Capital One 360 — including checking accounts, CDs, and high-yield savings accounts — but you will also have access to Capital One Bank local branches. On top of that, 360 offers a highly-rated mobile app for easy account management on the go.
- Minimum money market account deposit: $0
- Current interest rate: 0.85% for balances under $10,000; 2.00% for balances $10,000+ (as of October 11, 2021)
- Monthly maintenance fees: None
- Minimum balance required: None
- ATM card provided? No, but if you have an existing checking account, you can use your ATM debit card to deposit funds into your MMA from a Capital One ATM
- Checks provided? No, checks are not provided for Capital One 360 MMAs
- How to deposit funds into your MMA: Transfer from an existing Capital One/Capital One 360 account, ACH transfer from an external bank account, mobile check deposit, mail in a check for deposit, or deposit cash/checks at a Capital One ATM
- How to withdraw funds from your MMA: Transfer to an existing Capital One/Capital One 360 account, ACH transfer to an external bank account
- Mobile app offered? Yes, and it’s very highly rated
- Mobile check deposit available? Yes
5TIAA Bank
The more you save, the more you earn — at least, that’s the name of the game with the TIAA Bank Money Market Account. Their interest rates are significantly higher than the national average (even on the lowest savings tier), but the more you have saved, the higher that rate will continue to climb.
Plus, if you keep at least $5,000 in your account, TIAA will reimburse you for all ATM fees charged by other banks each statement cycle. (If your balance is less than $5,000, TIAA Bank will reimburse you for up to $15 in ATM fees each month.)
- Minimum money market account deposit: $500
- Introductory first-year interest rate: 0.40% APY, regardless of balance held (as of October 11, 2021)
- Monthly maintenance fees: None
- Minimum balance required: None
- ATM card provided? Yes, you’ll receive a Visa debit card
- Checks provided? No
- How to deposit funds into your MMA: Transfer from an existing TIAA account, ACH transfer from an external bank account, mobile check deposit, mail in a check for deposit
- How to withdraw funds from your MMA: Transfer to an existing TIAA account, ACH transfer to an external bank account, use your Visa debit card to withdraw cash or make a purchase
- Mobile app offered? Yes
- Mobile check deposit available? Yes
6Synchrony
Want check-writing capability, an ATM debit card, and the same interest rate no matter how much you deposit into your savings? Then look no further than an MMA from Synchrony Bank.
- Minimum money market account deposit: $0
- Current interest rate: 0.35% APY, regardless of balance (as of October 11, 2021)
- Monthly maintenance fees: None
- Minimum balance required: None
- ATM card provided? Yes, which can be used wherever your card is accepted or at ATMs around the country
- Checks provided? Yes
- How to deposit funds into your MMA: Transfer from an existing Synchrony account, ACH transfer from an external bank account, mobile check deposit, incoming wire, send a check by mail for deposit
- How to withdraw funds from your MMA: Transfer to an existing Synchrony account, ACH transfer to an external bank account, use your ATM/debit card to make purchases or withdraw cash from ATMs, write a check, outgoing wire, request a check to be mailed to you
- Mobile app offered? Yes
- Mobile check deposit available? Yes
7Ally Bank
There are no minimums to worry about with an Ally money market account. However, the more you save with them, the higher the interest rate your MMA will earn. Plus, you’ll have access to 24/7 live customer care with Ally, to help you with any questions you may have day or night.
- Minimum money market account deposit: $0
- Current interest rate: 0.35% APY for balances less than $25,000; 0.35% APY for balances $25,000+ (as of October 11, 2021)
- Monthly maintenance fees: None
- Minimum balance required: None
- ATM card provided? Yes
- Checks provided? Yes
- How to deposit funds into your MMA: Transfer from an existing Ally account, ACH transfer from an external bank account, mobile check deposit, incoming wire transfer, mail in a check for deposit
- How to withdraw funds from your MMA: Transfer to an existing Ally account, ACH transfer to an external bank account, use your ATM debit card to withdraw cash (up to $10 in out-of-network ATM fees reimbursed each month), write a check, outgoing wire
- Mobile app offered? Yes
- Mobile check deposit available? Yes
8iGoBanking
Want to earn one of the highest MMA interest rates possible and have a significant amount to tuck away in savings? Then the iGoBanking money market account might be right for you. It offers one of the highest rates around, but note that it does have a significant deposit requirement.
- Minimum money market account deposit: $25,000
- Current interest rate: 0.50% APY, regardless of balance (as of October 11, 2021)
- Monthly maintenance fees: None
- Minimum balance required: $25,000
- ATM card provided? Yes, you’ll receive a debit MasterCard
- Checks provided? No
- How to deposit funds into your MMA: Transfer from an existing iGoBanking account, ACH transfer from an external bank account, mobile check deposit
- How to withdraw funds from your MMA: Transfer to an existing iGoBanking account, ACH transfer to an external bank account, use your debit MasterCard to make purchases or withdraw cash at ATMs
- Mobile app offered? Yes, as well as a Flexible Deposit mobile software option
- Mobile check deposit available? Yes
When to Choose a Money Market Account
The debate between high-yield savings accounts and money market accounts can be confusing. After all, they’re so similar, it might seem like you’re splitting hairs when debating one over the other.
And truthfully, there isn’t much of a difference at all. The only reason to choose an MMA over a savings account is if you want to have even more flexible access to your funds, and the ability to use them directly out of your account (versus needing to transfer to a checking account first). That’s because with MMAs, you can often find check-writing capabilities or, depending on the bank, ATM debit cards.
With these, you can make large purchases from your savings account, write checks directly out of the account, withdraw cash from ATMs, and even use an online bill-pay platform. This added flexibility may simplify your life considerably, allowing you to not only maintain your high-yield savings account, but use the funds when you need them.
Are Money Market Accounts Safe?
Though they earn interest, money market accounts are not investments. As such, they are safe financial products and you don’t need to worry about your money being at risk.
An MMA is no different from your checking or high-yield savings account in that respect. The money you put into the account will still be there when you need it most — plus some interest, if you choose the right bank. Most banks (especially those listed here) are FDIC-insured, as well, meaning that you have an added peace of mind that your money is protected.
Money market accounts (MMAs) are an excellent way to set your savings aside for your future goals, while also earning an enviable interest rate and maintaining flexible access to your funds. You can use your money when, and how, you need it with an MMA, making it a wise financial product to add to your collection.
