8 Best Money Market Accounts for October 2022

Money market accounts (MMAs) offer some of the flexibility of a checking account while paying higher interest rates like a savings account. If you want to store your cash somewhere it’s easily accessible and still earn a high APY, opening a money market account is an excellent idea.

We analyzed dozens of options from various banks and credit unions to find the best money market accounts.

1. Quantic Bank

Right now, Quontic has one of the best money market accounts paying 2% APY. There is a minimum opening deposit of $100 and no monthly or overdraft fees. Like most money market accounts, you are limited to six transfers or withdrawals per statement cycle.

If you make additional transfers, you pay $10 per transfer. You can also get a free debit card for your Quontic account to make spending easier.

2. UFB Direct

UFB Direct, which is a division of Axos Bank, is another excellent money market account that pays 3.01% APY. And best of all, there is no minimum deposit requirement to open an account. However, you must deposit $5,000 to waive the fees. You also get six free transfers in one statement cycle and pay $10 for each subsequent transfer.

UFB Direct also offers low interest mortgage options, but is not a full service bank. If you want additional banking and investment features, you can always open an MMA with UFB Direct and do your main banking with axes or another bank.

3. Vio Bank

Vio Bank is an online bank that focuses on money market accounts, high-yield savings accounts and certificates of deposit (CDs). And with their Cornerstone Money Market account, you currently earn 2.80% APY on all balance levels.

Like Quontic, there is a minimum funding requirement of $100 to open an account. You pay no monthly fees, but if you make more than six withdrawals per statement cycle, you pay $10 for each additional withdrawal.

4. Ally Bank

If you’re looking to open a money market account with a full-service bank, Ally is one of our top picks. Your money market account pays 2.10% APY on all balance levels and there are no maintenance fees or minimum balance requirements.

Like other accounts, you get six free monthly withdrawals and pay $10 for additional withdrawals. You also get free ATM withdrawals at over 43,000 AllPoint ATMs. Ally also has many other useful banking features, including active investing, a robo-advisor, and checking and savings accounts.

5. CIT Bank

Currently paying CIT Bank money market account 1.55% APY and has a minimum deposit requirement of $100. Pay no monthly fees and get six free withdrawals per month. And right now, you can get a free year of Amazon Prime if you open a new CIT Bank money market account and fund it with at least $15,000 for at least 60 days. Just use the code AMZN22 when you sign up for your account.

We also like CIT Bank because it has multiple savings account options and a variety of CDs. Their savings accounts currently pay up to 1.00% i 2.70% APY respectively. If you’re looking for a good home for your emergency fund and several CDs, CIT Bank could be an excellent choice.

6. Sallie Mae

Sallie Mae is an online bank known for its variety of student loan and savings products. Their money market account currently pays 2.25% APY and there is no minimum balance requirement or monthly fee. Their high-yield savings account also pays 2.15% APY, making Sallie Mae another great option for parking idle cash you’re not currently investing.

7. Discover

A downside to some money market accounts is that certain deposit levels don’t pay very high interest rates. But with the Discover money market account, you currently earn 2.05% APY for balances under $100,000 i 2.10% APY on balances above this amount.

There are no monthly fees or minimum balance requirements. And right now, Discover says it’s not enforcing the six-transaction monthly limit for its money market account.

8. Synchrony

One last money market account to consider is Synchrony, which currently pays 1.60% APY on all balance levels. There is no minimum deposit requirement like some of the other major MMAs. And Synchrony also offers IRA money market accounts so you can get tax advantages and great CD rates.

Factors to consider when choosing a money market account

Now that you know some of the highest paying money market accounts out there right now, here are a few more factors to consider when choosing:

1. APY: The main reason for opening a money market account is to earn more interest on your idle cash. So, compare APYs among your options to find where you can maximize your dollars. Just be aware that APYs are variable, not fixed, and tend to change regularly.
2. Minimum deposit requirements: Many leading money market accounts currently have no balance requirements or only require $100 to fund an account. But sometimes there are higher requirements to open an account or to avoid monthly fees.
3. Check write privileges: A money market account isn’t as flexible as a checking account, but ideally you should get check-writing privileges so you can still make some payments if you want.
4. ATM access: Most money market accounts allow you to make six free trades per month. Some also include a debit card and include fee-free ATM withdrawals at certain ATM operators.
5. Online Support vs: Online-only banks tend to have money market accounts with higher APYs. But if you want in-person support, going with a bank or credit union with physical branches makes more sense.
6. Promotions: If you can get cash bonuses or other gifts for opening a new money market account, it’s worth going for a slightly lower APY.

Are money market accounts safe?

Money market accounts are a safe investment and are usually FDIC insured up to $250,000. Banks and credit unions also use money market account funds for short-term investing, Low Risk investments like CDs and bonds to generate returns.

Who should open a money market account?

Because money market accounts are like a hybrid between a checking and savings account, there are several instances when you might want to open one. Some common use cases for opening a money market account include:

• Have a place to keep your emergency fund or cash reserve
• Earn interest on your cash without locking up your money in CDs or bonds
• Earn a higher APY than a basic checking or savings account
• Keep your extra money in a safe and secure place

The main downside to money market accounts is the limit of six free monthly transactions/withdrawals. And you can often find higher interest rates with some CDs, savings accounts or inflation-proof investments like I Bonds. But for a safe and flexible place to store your emergency fund or work towards a savings goal, money market accounts are useful.

Money market account vs. Money Market Funds: What’s the Difference?

A money market account is a deposit account that is like a cross between a checking account and a savings account. You can open money market accounts at many banks or credit unions, and they offer some flexibility in spending while still earning interest.

In contrast, a money market fund is a mutual fund that invests in short-term investments such as commercial paper and US Treasuries. These funds are popular for putting extra money into your portfolio rather than putting it on the sidelines, as money market funds invest in low-risk investments.

Methodology

At Investor Junkie, our writing and editorial teams reviewed dozens or more banks and credit unions to find the most competitive money market accounts. From there, we selected the best options based on factors such as interest rates, minimum deposit requirements, potential fees and many other criteria. The companies included in this list in no way influenced our decision-making process or their ranking.

There are still other money market accounts you can consider. Also note that interest rates are variable and subject to change. The interest rates in this article are current as of July 11, 2022. Our editorial team regularly reviews money market account rates and updates this particular article monthly.