5 Best Money Market Account Rates and Hacks to Invest in Them

Do you want your savings to work and earn big for you? Money market accounts are just the thing you need. Now is an ideal time to invest in the money market. But we won’t emphasize the Money market account benefits here. The time is rife. You need to invest swiftly. So, we will do a quick-check on the best Money market account rates.

But know the Money market account rates before you plunge into an investment.

The national average APY from investments accounts is 0.42% in the US. However, money markets offer at least 11 times higher returns at a stable rate. Generally, the highest-grossing money market accounts offer better APY than the conventional saving A/Cs.

These accounts also have other facilities like check withdrawal. Hence, you can pull out your earnings at will.

Quick Facts about the Money Market

• The Federal Reserve slashed the federal funds rate by 50 basis points in September.
• So, yields from money market accounts may slump soon.
• But the top Money market account rates are currently faring above inflation.
• So, your investments can earn you higher purchasing power.

The Best Money market account rates

Money market accounts are now yielding above the inflation rate (2.4%). The best rate that you can claim now is 5%. Many banks and credit unions are offering the same or slightly higher. For example, Quontic Bank is offering 5.02% at present.

However, the national average for the money market accounts is only 0.61% APY. Meanwhile, only 15 or so money market accounts offer lofty rates like this.

Common mistakes while investing in money market accounts

Often, people complain that they can’t get reasonable money market account rates while investing. Let me tell you, they are making a significant mistake. You might be indulging in the same flaw.

What people do is get confused between money market accounts, money market funds, and money market mutual funds. The latter two are investment accounts. However, money market accounts run on fixed interest rates. Unlike the other two, you won’t lose your money here due to a sudden slump in return rates.

Difference between the best accounts and best rates

Here’s something most experts won’t tell you. Invest in the best money market accounts if you want your investment to grow significantly with time. But those who crave quick benefits can check out the best rates the market offers.

Some of the Best Money Market Accounts

Remember that the best money market accounts also offer competitive Money market account interest rates. But their rates may not be the highest in the market. Still, they have some undeniable advantages on offer. Let’s take some examples for clarification:

As we can see, the best money market accounts do not offer the highest rates. However, investing in these accounts is easier since there are least minimum A/C balance requirements.

These accounts also do away with other Money market account requirements like monthly maintenance fees and unique hidden charges.

At the same time, all these accounts allow you to open accounts at negligible initial investments. However, money market accounts like CFG Community Bank need a $1000 minimum account balance. At the same time, a $10 monthly fee is also applicable.

But there is one thing where CFG stands out. The bank offers upto 5.50% return rates.

The Highest Money Market Account Rates

Here, we will consider accounts that offer the highest return rates. Meanwhile, other pros and cons won’t matter much. Also, remember that credit unions offer better interest rates than banks. However, banks provide stability and assurance that you won’t lose money.

Now, you have to decide where to invest:

Harborstone credit Union

Harborstone is one of the best money market deposit accounts that you’ll find in the US. So, it also tops our chart of the highest money market interest rates.

But let me tell you, the rates may change over time. Down 2 financial years, others may offer higher rates, or Harborstone’s rates may trickle down. But there is a catch. The money market rates do not fluctuate overnight like the investment accounts like stocks and index funds.

APY offered: 5.20%

Minimum balance requirement: $1

Hanover Bank

One of the private banks offering the best money market account rates is Hanover Bank’s money market deposit account.

Hanover Bank will ensure your money is not lost as an FDIC member bank. Meanwhile, the membership reflects that the bank can offer steady interest returns to A/C holders. It also shows that the banks have adequate stock capital to clear dues in case of any emergency.

APY rate: 5.05% (flat)

Minimum balance requirement: $1

VIO Bank

Another private bank offering high money market account rates is VIO Bank from the US. They are also an FDIC member bank. So, they ensure stable and assured returns. In other words, your money is safe with VIO Bank.

One of the best things about the bank is the $0 monthly maintenance charge. However, they have a $100 minimum A/C balance requirement, and that’s non-negotiable.

APY rate: 5.05% (flat)

Minimum balance requirement: $100 (compulsory for all money market account holders)

Quontic Bank

Quontic’s money market accounts are perhaps the most popular in the US. They have plenty of investment options. Meanwhile, their return and return success rate is the highest among banks offering high (5% or higher) money market account rates.

An obvious FDIC member, Quontic is one of the rare banks offering a $0 minimum A/C balance to operate money market accounts with them. But. There’s a pitfall too. Quontic will charge $100 to open an account with them the first time.

Indeed, it is no service charge. And the whole $100 goes towards your account. Yet, that’s not too bad. Once you invest the amount, you can enjoy more significant earnings. Again, you can withdraw any amount as and when you wish.

Guess what? They provide check writing facilities as well.

APY offered: 5.00%

Minimum balance requirement: $100 (compulsory for all money market account holders)

Start investing in money market accounts today!

You’re losing a lot, if you are not yet investing in money market accounts. So, check out the offers of these best 5 money market accounts and invest ASAP.

But why do you need to go after the highest rates? The money market account rates are the highest at the moment. However, the Federal Reserve lowered the funds rate by half last month. It will soon take its toll. And the return rates will not be the same anymore.

I recommend investing in accounts that offer accessible withdrawal facilities. But besides that, you don’t need to put your head into diverse parameters. Just find who’s giving the highest interest and invest promptly.

Lastly, all banks and unions offer customary leverage if you invest a handle amount. So, try to capitalize on the benefits if you can.

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