Maximize Your Savings with High-Yield Money Market Accounts: June 2025 Rates and Historical Context

If you're looking for a place to store your cash that offers a relatively high interest rate, liquidity, and flexibility, a money market account (MMA) could be a great option. Unlike traditional savings accounts, MMAs typically offer better returns and may also provide check-writing privileges and debit card access. This makes these accounts ideal for holding long-term savings that you want to grow over time, but can still access when needed for certain purchases or bills.

Current Money Market Account Rates:

The national average interest rate for money market accounts is currently 0.62%, according to the FDIC. However, the best money market account rates often pay above 4% APY - similar to the rates offered on high-yield savings accounts. Here is a look at today's highest money market account rates:

• The best MMAs currently offer 4.51% APY or more.
• Online banks and credit unions tend to offer the highest rates.
• The best rates are often subject to minimum balance requirements, fees, and withdrawal limits.

Historical Context:

Money market account rates have fluctuated significantly in recent years, largely due to changes in the Federal Reserve's target interest rate, known as the federal funds rate. In the wake of the 2008 financial crisis, interest rates were kept extremely low to stimulate the economy. The Fed slashed the federal funds rate to near zero, which led to very low MMA rates. During this time, money market account rates were typically around 0.10% to 0.50%, with many accounts offering rates on the lower end of that range.

Eventually, the Fed began raising interest rates gradually as the economy improved. This led to higher yields on savings products, including MMAs. However, in 2020, the COVID-19 pandemic led to a brief but sharp recession, and the Fed once again cut its benchmark rate to near zero to combat the economic fallout. This resulted in a sharp decline in MMA rates.

Starting in 2022, the Fed embarked on a series of aggressive interest rate hikes to combat inflation. This led to historically high deposit rates across the board. By late 2023, money market account rates had risen substantially, with many accounts offering 4.00% or higher. Throughout 2024, MMA interest rates remained elevated, and it was possible to find accounts that paid well above 5% APY. Today, rates remain high by historical standards, though they've begun a downward trajectory following the Fed's most recent rate cuts later in late 2024.