Why choose a money market account
Conservative savers find money market accounts attractive because they sometimes offer higher yields than other savings accounts and more liquidity than certificates of deposit. There are some downsides, of course: The interest rates are variable, the best money market accounts often have high minimum deposits, and there are limits to your liquidity.
If you’ve decided that a money market account is right for you or your business, shop around for a great rate. And take a look at the best personal, business, and jumbo money market accounts (by APY) below.
First, a quick note about money market account liquidity: Regulation D (Reg D) from the Federal Reserve Board limits money market account holders to six withdrawals per statement cycle on several transaction methods — financial institutions can charge fees, convert the account to a checking account or even close the account if you exceed the limit. All money market accounts are subject to the regulation, though fees vary by institution.
Personal Money Market Accounts
Bank/Institution
APY
Min to earn APY
Northern Bank Direct
Money Market
Business Money Market Accounts
Bank/Institution
APY
Min to earn APY
Premier Members Credit Union
Business Money Market Account
How we chose the best money market accounts
We used data from DepositAccounts.com, a LendingTree company, to compare nationally available money market account products by annual percentage yield (APY) in three categories: personal, business and jumbo. We excluded institutions with a health rating below a B, as well as credit unions with very restrictive membership requirements.
From there, we chose the two money market accounts with the highest APY in each category. If the top two money market accounts had the same APY, we broke the tie by choosing the institution with the least fluctuation in its rate history (we consider that a better choice than an account with rates that tend to change often). All products in this list are insured up to $250,000 by either the Federal Deposit Insurance Corp. (FDIC) or the National Credit Union Administration (NCUA).
Don’t confuse a money market account with a money market fund
A money market account is not the same as a money market fund and the two should not be confused. Money market accounts are insured by the FDIC or the NCUA. Investments in money market funds are not. The reason some people are willing to invest in money market funds is that they offer the potential for a higher return, but that comes with a higher risk of losses.