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Money market accounts combine checking access with savings interest
The national average MMA rate is 0.61%, while some institutions advertise 3% to 4% APY.
Money market accounts (MMAs) are deposit accounts that pay interest and offer limited access to funds, blending features of savings and checking accounts. According to Yahoo Finance, you may be able to write checks and/or use a debit card for transactions, while your balance earns interest.
Rates on money market accounts are often competitive but typically vary by institution. Yahoo Finance cites a national average MMA rate of 0.61%, with some banks offering rates as high as 3% to 4% APY, and notes that MMA rates can be tiered and variable over time.
Because MMAs generally allow easier access than savings accounts, there may be limits on certain withdrawals or transfers. Yahoo Finance also says MMAs at FDIC insured banks or NCUA insured credit unions are generally insured up to $250,000 per depositor, per institution, and some accounts may require higher minimum balances and may charge fees if you do not meet those thresholds.