Where to find a money market account

Money market accounts are offered by most traditional banks, online banks, and credit unions. The institutions that offer them vary widely in their interest rates, minimum balances, and fees — so the bank you already use may not be your best option.

You have three main categories to choose from: national banks with physical branches (like Bank of America, Wells Fargo, or Chase), online-only banks (like Ally, Marcus, or Discover), and credit unions. Each has different trade-offs. National banks are convenient if you need to deposit cash or speak to someone in person, but they typically pay lower interest rates. Online banks usually pay higher rates because they have lower overhead costs, but you cannot walk into a branch. Credit unions often fall somewhere in the middle and may offer better rates to members, but membership requirements vary.

Key Takeaways

  • Online banks typically offer the highest interest rates on money market accounts because they do not maintain physical branches.
  • National banks with branches offer lower rates but let you deposit cash in person and speak to staff face-to-face.
  • Credit unions may offer competitive rates to members, but you must meet membership requirements to open an account.
  • The interest rate, minimum balance requirement, and monthly fees vary significantly between institutions, so comparing a few options before opening is worth your time.

Online banks and their money market rates

Online banks have become the most common source of high-rate money market accounts. Because they operate without branch networks, they pass savings on to customers through higher interest rates. Banks like Ally, Marcus (owned by Goldman Sachs), Discover, and American Express all offer money market accounts with no physical locations.

The trade-off is that you cannot deposit cash directly. You transfer money from another bank account using ACH (automated clearing house) transfers, which typically take one to three business days. If you need to deposit a check, you can use mobile deposit through their app. Most online banks also do not offer debit cards tied to money market accounts, so you would need to transfer funds to a checking account first if you want to spend the money.

Online banks are worth comparing because rates change frequently and vary between institutions. The same bank may offer different rates depending on your account balance. Some online banks also waive minimum balance requirements, while others require $2,500 or more to open.

National and regional banks with branches

If you prefer to handle banking in person, national banks like Bank of America, Wells Fargo, Chase, and Citibank all offer money market accounts. Regional banks — institutions that operate in specific states or regions — also offer them. Examples include PNC, U.S. Bank, Fifth Third Bank, and SunTrust.

The advantage of a branch-based bank is convenience. You can deposit cash without waiting for a transfer to clear, and you can speak to a banker if you have questions. Some branches also offer notary services or other financial services you might need.

The disadvantage is that interest rates at branch banks are typically much lower than online banks. A national bank might offer 0.01% APY on a money market account while an online bank offers 4% or higher — the difference compounds significantly over time. Branch banks also tend to charge higher monthly maintenance fees if your balance falls below a certain threshold.

Credit unions

Credit unions are member-owned financial institutions that often offer competitive rates on money market accounts. Unlike banks, which are for-profit, credit unions return earnings to members through better rates and lower fees. Examples include Navy Federal Credit Union, Connexus Credit Union, and Alliant Credit Union.

The catch is that you must be a member to open an account, and membership requirements vary. Some credit unions are open to anyone in a geographic area. Others require you to work for a specific employer, belong to a certain organization, or live in a particular county. A few allow membership if you donate to a may have access to charity or open a savings account with them first.

If you already belong to a credit union through your employer or a professional association, it is worth asking whether they offer money market accounts. Credit unions often have lower fees and competitive rates, especially for members with larger balances.

How to compare money market accounts across institutions

When you are looking at different banks and credit unions, focus on three things: the annual percentage yield (APY), the minimum balance requirement, and the monthly maintenance fee.

The APY is the interest rate you earn, expressed as a yearly percentage. It changes over time as the Federal Reserve adjusts interest rates, so a rate that is high today may not be high in six months. Check the current rate on the institution's website rather than relying on rates you saw weeks ago.

The minimum balance requirement is the amount you must keep in the account to earn the stated rate or avoid fees. Some banks require $1,000, others $10,000 or more. If you cannot meet the minimum, you may earn a lower rate or pay a monthly fee. A few online banks have no minimum at all.

The monthly maintenance fee is charged if your balance falls below the minimum or if you do not meet other conditions (like setting up direct deposit). Most online banks waive this fee entirely. Branch banks often charge $10 to $25 per month if you fall short of the minimum.

Checking current rates and opening an account

Interest rates on money market accounts change frequently, sometimes weekly. The best way to find current rates is to visit the bank's or credit union's website directly and look for their money market account page. You can also use rate comparison websites, but verify the rate on the institution's own site before opening an account.

Once you have chosen an institution, opening an account is usually straightforward. Online banks let you open an account entirely through their website or app in about 10 minutes. You will need your Social Security number, a government-issued ID, and proof of address (usually a recent utility bill or bank statement). You will also need to link a bank account to transfer your initial deposit.

At a branch bank or credit union, you can open an account in person or online, depending on the institution. If you open in person, bring your ID and proof of address. If you open online, the process is similar to opening at an online bank.

What to watch for when choosing

Before you open an account, read the account agreement to understand the withdrawal limits. Money market accounts are designed for saving rather than frequent spending, and federal regulations once limited you to six withdrawals per month. That rule has been relaxed, but individual banks may still impose limits or charge fees for excess withdrawals.

Also check whether the bank offers FDIC insurance (for banks) or NCUA insurance (for credit unions). This protects your money if the institution fails. Most banks and credit unions are insured up to $250,000 per account holder per institution, so if you have more than that, you would need to split it across multiple institutions to keep it all insured.

Finally, consider whether you might need to access your money quickly. Money market accounts are not designed for frequent withdrawals, and transfers between banks take one to three business days. If you need immediate access to cash, a regular savings account or checking account may be more practical, even if the interest rate is lower.

Frequently Asked Questions

Can I open a money market account at my current bank?

Probably, but it may not be your best option. Most national and regional banks offer money market accounts, but their rates are typically much lower than online banks. Contact your bank directly or check their website to see what they offer and compare the rate to online alternatives before deciding.

Do I need a minimum balance to open a money market account?

It depends on the institution. Some online banks have no minimum balance requirement. Others require $1,000, $2,500, or more. Check the specific bank's requirements before opening. If you cannot meet the minimum, you may be charged a monthly fee or earn a lower interest rate.

How long does it take to transfer money out of a money market account?

Transfers to another bank account typically take one to three business days through ACH transfer. Some banks offer faster options like wire transfers, but those may have fees. Transfers within the same bank are usually instant. Check your bank's transfer options before opening if speed matters to you.

What is the difference between a money market account and a money market fund?

A money market account is a bank or credit union deposit account insured by FDIC or NCUA. A money market fund is an investment product sold by brokerages and mutual fund companies that is not insured. Money market accounts are safer but typically offer lower returns. Money market funds carry investment risk but may offer higher yields.

Can I use a debit card with a money market account?

Most money market accounts do not come with a debit card. If you need to spend the money, you would transfer it to a checking account first. Some banks offer money market accounts with limited check-writing privileges instead. Ask the bank what access options they provide before opening.