If you're looking to get a better interest rate on your savings, you need to consider opening a money market account.
Money market accounts operate extremely similar to savings accounts, and they are available at most banks. However, you're typically going to find the best money market accounts at online banks.
A money market account can be a great place to park your savings, your emergency fund, your down payment for your house, or any other large sum of cash.
We break down our favorite money market accounts, as well as provide a list of the best money market accounts everyday in our table that updates daily. Given that interest rates change daily, make sure you check the table to get the best rates.
Our Top 10 Best Money Market Account Picks This Year
We evaluate money market accounts based on their annual percentage rate (the interest you receive), the minimum balance requirements, and the terms and conditions of having the account.
Based on that, here are our recommendations of the best money market accounts.
Note: The savings offers that appear on this site are from companies from which The College Investor receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). The College Investor does not include all savings companies or all savings offers available in the marketplace.
1. CIT Bank
The CIT Bank Money Market Account is one of our top money market picks because they consistently have one of the highest interest rates offered to consumers.
Also, their platform in incredibly easy to use, with the ability to sign up and get started in minutes.
You can currently get 1.75% APY if you meet the requirements (whether balance or deposits).
There are no gimmicks with CIT Bank - you earn interest on your entire balance, and you have a low minimum to get started. Read our full CIT Bank review here.
2. UFB Direct
UFB Direct is an online bank with a top yielding money market product. It follows a very traditional money market setup with a higher minimum balance requirement, but it does pay well.
It does require a $5,000 minimum balance to open, and you don't earn anything until you clear $25,000.
You can currently get 1.70% APY on balances over $25,000.
3. Discover Bank
Discover Bank has been around for a long time online, but not many people realize they have a bank beyond their credit cards.
They do pay a higher interest rate on balances over $100,000 - so they operate much like a traditional money market account. And best of all, they are fee free!
Right now you can earn 1.40% APY on balances over $100,000, and 1.35% APY for balances under $100,000.
Read our full Discover Bank review here.
Marcus is another online bank that has been gaining real traction. Marcus is the online bank run by Goldman Sachs, and they offer extremely competitive yields on their banking products.
They have no minimum deposit and no transaction fees, which is great considering that they are usually always one of the top yielding accounts available.
Right now you can earn 1.70% APY.
Check out our full Marcus by Goldman Sachs review here.
5. Barclays Bank
Barclays Bank has a fairly standard online savings account that's highly comparable to other money market accounts on this list.
Unlike others on this list, there is no minimum balance required to open an account with Barclays.
They are about as traditional a bank as you get. Plus, they also don't charge any monthly fees as well.
You can currently get 1.50% APY.
Read our full Barclays Bank review here.
Betterment Everyday™ is the newest robo-advisor to start offering a money market account.
You can currently get 0.30% APY.
The great thing about this account is that it's not linked to their robo-advisor - which means no fees. They also have no minimums, and FDIC insurance up to $1,000,000.
Check out our full Betterment review here.
The BBVA Money Market Account is another of our favorites because they also consistently have a top rate, low minimum to get started, and a great mobile banking platform.
BBVA also allows you to earn the full annual percentage yield (APY) on your entire balance, no matter how much is in your account.
You can currently get 0.80% APY, with a minimum of $10,000.
8. BMO Harris
BMO Harris Bank is a new-comer to this list, but it's an established bank that's working to grow market share online. As a result, it's offering an incredibly high yield online savings account.
Right now you can earn up to 1.75% APY. You do need to maintain a minimum $5,000 to get this APY.
Read our full BMO Harris Bank review here.
9. Capital One 360
Capital One 360 is another online bank that has been around for a long time. This one is more recognizable for being a bank, but they are still very well known for their credit cards.
They have a good yield on their account (which they actually call their Performance Savings account), and they also are offering bonuses for opening a new account. With no monthly fees, this is a solid choice.
You can currently get 1.50% APY on any balance!
Read our full Capital One review here.
10. TIAA Bank
TIAA Bank offers a solid account paying a great interest rate. They offer a variety of online banking options, and are consistently near the top of the list. They have a "yield pledge" where they consistently pledge to have their rate in the top 5% of all rates out there.
There is a $500 minimum to open an account.
Right now you can earn 1.40% APY. APY Variable and Subject to Change. This is also an introductory rate that is only guaranteed for one year.
Best Money Market Accounts | Daily Updated List
The Difference Between A Savings Account And A Money Market Account
It's important to note that there is very little difference between a savings account and a money market account.
Both accounts are FDIC insured, both have limits on how many checks and transfers you can do, and both are offered by banks, credit unions, and investment firms.
The big difference is that a money market account typically pays a little bit higher interest, but it also typically requires a slightly higher minimum balance.
That's not always the case, though.
You can check out our list of the best high yield savings accounts here.
For example, one of our favorite picks, CIT Bank does only have a $100 minimum, which isn't much.
Money Market Accounts vs. Certificates of Deposit (CDs)
Money markets also have the advantage over certificates of deposit because they are liquid - you can get a higher interest rate on your money but you don't have to worry about tying your money up for a long period of time.
While there are some CDs that earn higher rates than you'll find in a money market account, those CDs typically have 5-10 year time frames.
Depending on where you open a money market account, it may not be FDIC insured. CDs are typically always FDIC insured. Learn more what it means to be FDIC insured here.
And if you sell before your expiration date, you typically face large penalties.
You can get a glimpse of the best CD rates here, but if you need liquid savings, you're better off going with a savings account or money market account.
A money market account can be a great way to save your money.
You typically earn higher interest rates, but there are some restrictions above and beyond what you usually find for savings accounts.
Just like any account, make sure you're opening the best money market account for your needs so you can reap the rewards.