Affiliate marketer Gadget 2020

A money market account can be great for earning a high annual percentage yield (APY). Some accounts may let you write a limited number of checks and also offer a debit card.

Many online banks offer a more competitive yield than brick-and-mortar banks. This is because online banks don’t usually have as much overhead, since they don’t operate physical branches. Online banks need to attract your attention and high yields are a way to do this, which is good for savers.

Choosing a Federal Deposit Insurance Corporation (FDIC) money market account at an online bank can be a great way to get these high-yielding APYs. Just make sure that you’re within the FDIC’s guidelines and limits.

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Methodology for Bankrate’s Best Money Market Accounts

We regularly survey approximately 4,800 banks and credit unions in all 50 states to provide you with one of the most comprehensive comparisons of rates. All of the money market accounts below, which are savings accounts that may let you write a limited amount of checks per month, are insured by the FDIC at banks or the NCUA at credit unions. When selecting the best money market account for you, look for the highest yield while also considering introductory rates, minimum balances and accessibility.

At Bankrate, we strive to help you make smarter financial decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. The top banks listed below are based on factors such as annual percentage yield (APY), minimum balance requirements and broad availability.

Best money market accounts & rates for November 2020

  1. Highest Rate: Navy Federal Credit Union – up to 0.70% APY*
  2. High Rate: First Internet Bank – 0.60% APY
  3. High Rate: Sallie Mae Bank – 0.55% APY
  4. High Rate: CIT Bank – 0.55% APY
  5. High Rate: TIAA Bank – 0.55% APY**
  6. High Rate: Ally Bank – 0.50% APY
  7. High Rate: Synchrony Bank – 0.50% APY
  8. High Rate: Discover Bank – up to 0.45% APY
  9. High Rate: BMO Harris – 0.40% APY

*Highest APY is with at least $250,000 in a Jumbo Money Market Savings Account

**Promotional rate or introductory APY

Note: The APYs (Annual Percentage Yields) shown are as of Nov. 13, 2020. Bankrate’s editorial team updates this information regularly, typically biweekly. APYs may have changed since they were last updated. The APYs for some products may vary by region.

Bankrate’s guide to choosing the right money market account rate

Best money market accounts: Bank details

Here are Bankrate’s top money market accounts for November 2020:

1. Highest Rate: Navy Federal Credit Union – up to 0.70% APY

$250,000 minimum balance for top APY (jumbo money market savings account)

Best for those affiliated with the military

Overview: Navy Federal has been around since 1933. It has more than nine million members. Active duty members of the Air Force, Army, Coast Guard, the U.S. Marines, National Guard and Space Force, veterans and retirees are some that are eligible to join this credit union.

Immediate family members of military members can join Navy Federal Credit Union too.

Perks: Navy Federal Credit Union has a jumbo money market savings account that incrementally keeps increasing its yield until it gets to $250,000 or higher.

What to watch for: You’ll need to put at least $250,000 into a jumbo money market savings account in order to earn the top APY. Also, some people might not meet the membership requirements. Also, you won’t earn interest on balances under $2,500 on the money market savings account.

2. High Rate: First Internet Bank – 0.60% APY

$100 minimum deposit to open account

Best for monthly ATM surcharge rebate

Overview: First Internet Bank’s Money Market Savings gives savers a competitive APY and it’s also an option if you occasionally need to use an ATM. The account also only requires $100 to open one.

Perks: The Money Market Savings account gives you up to $10 per month for ATM surcharge rebates. This can help limit the stress of finding an in-network ATM. But just make sure you don’t surpass the $10 monthly limit.

What to watch for: You need an average daily balance of $4,000 in order to avoid the $5 monthly fee. Beginning savers who won’t be able to keep that balance will probably want to consider options with lower minimum balance requirements.

3. High Rate: Sallie Mae Bank – 0.55% APY

$0 minimum deposit to open account

Best for free first order of checks at opening

Overview: Sallie Mae may be mostly associated with student loans, but it also provides a range of savings products for consumers. The bank offers a money market account, high-yield savings account and CDs.

Perks: You don’t need any money to open this money market account. This account also has check-writing privileges.

What to watch for: There isn’t a minimum deposit needed to open an account. But if you don’t fund the account within 40 days, the account will be closed. Sallie Mae reserves the right to close a dormant account, which the bank defines as an account with $100 or less in it that doesn’t have qualifying activity for the past 12 months.

Order your checks when you open your account. If you don’t, they’ll cost either $5 (10-day standard delivery) or $15 (2-3 business days for expedited delivery).

4. High Rate: CIT Bank – 0.55% APY

$100 minimum deposit to open account

Best for variety of savings options

Overview: CIT Bank is CIT’s national direct bank. CIT Bank, N.A. is a subsidiary of CIT Group Inc. In addition to its money market account, CIT Bank offers two savings accounts. CIT Bank also launched its eChecking account in Nov. 2019.

Besides its liquid accounts, CIT Bank also offers eight terms of CDs, four terms of jumbo CDs and an 11-month no-penalty CD.

Perks: The money market account offers a competitive APY and only requires a $100 minimum balance to open the account. It doesn’t have any service fees, so your interest earnings won’t take a hit. CIT Bank offers nearly every type of bank account, unlike some other online banks.

What to watch for: The money market account at CIT Bank has a $10 excessive transaction fee, which is capped at $50 per month. It also has an overdraft fee of $25 and a $30 stop payment fee.

5. High Rate: TIAA Bank – 0.55% APY (Intro APY)

$500 minimum deposit to open account

Best for a guaranteed competitive intro rate

Overview: TIAA Bank, formerly known as EverBank, provides a range of banking, lending and investing options. Its deposit products include a high-yield money market account, checking, savings and CDs. In addition to competitive rates on banking products, TIAA Bank also offers mobile banking and online tools.

Perks: One of the biggest perks you’ll find with TIAA Bank is its “Yield Pledge,” which maintains that its yield pledge money market account rate will always be competitive and in the top 5 percent. Its money market account also has no monthly fee, allows for mobile check deposits and is IRA-eligible. As long as you keep at least $5,000 in your yield pledge money market account, TIAA Bank will reimburse all ATM fees charged by other banks. Regardless of your balance, you’ll be reimbursed up to $15 for ATM fees incurred by using non-TIAA Bank ATMs.

What to watch for: The APY on its money market account is attractive, but it’s only an introductory APY. After a year, your APY may drop according to your balance.

6. High Rate: Ally Bank – 0.50% APY

$0 minimum deposit for APY

Best for widely available ATM network

Overview: Ally Bank has around two million customers, according to its 2019 annual report. Ally Bank launched in 2009.

Perks: The Ally Bank money market account allows you to have both a debit card and check-writing privileges. Also, the 24/7 customer service, with posted wait times on its website, helps the customer experience.

What to watch for: There’s a $10 excessive transaction fee for each transaction that surpasses six in a statement cycle. You’ll also incur a $25 fee for overdraft items that are paid or returned.

7. High Rate: Synchrony Bank – 0.50% APY

$0 minimum deposit for APY

Best for regular and IRA money market accounts

Overview: Synchrony Bank offers a money market account, a savings account and CDs.

Perks: The Synchrony Bank money market account has check-writing privileges. You just need to ask the bank for checks once you deposit money into your account. Also, you can get an ATM card for your money market account. At the very least, you’ll receive a refund of $5 per statement cycle of ATM fees charged by domestic ATM providers. Those who have Diamond status in Synchrony’s rewards program receive unlimited ATM fee refunds on their accounts.

What to watch for: ATM fees outside of the U.S. aren’t eligible for a refund.

8. High Rate: Discover Bank – up to 0.45% APY

$100,000 minimum deposit for APY

Best for rewarding jumbo balances

Overview: Discover Bank is an online bank that offers a variety of products. It has a money market account, a savings account, a checking account, and 12 terms of both regular CDs and IRA CDs.

Perks: Jumbo balances get a little higher yield in the Discover Bank money market account. Balances of $100,000 earn a little higher rate.

What to watch for: You’ll need $2,500 to open this account. But after you open the account you’re not charged a fee for falling below $2,500.

9. High Rate: BMO Harris – 0.40% APY (varies by market)

$5,000 minimum deposit for APY

Best for high yield and ATM card

Overview: BMO Harris, which has its U.S. headquarters in Chicago, has nearly 600 branches in Arizona, Florida, Illinois, Indiana, Kansas, Minnesota, Missouri and Wisconsin. But people in those states, with the exception of Florida, aren’t eligible for the platinum money market account.

Perks: You can order checks for the platinum money market account, and you can also get an ATM card. The platinum money market account also doesn’t have any monthly maintenance fees, and you don’t need to keep a minimum balance in the account.

What to watch for:Balances lower than $5,000 only earn 0.01 percent APY. Those planning to keep balances under $5,000 should probably look for a different account. There is also a $50 account closing fee if you close the platinum money market account within 90 days of account opening. BMO Harris’ APY on the Platinum Money Market account isn’t available if you live in Arizona, Illinois, Indiana, Kansas, Minnesota, Missouri, and Wisconsin. Also, $1,000,000 or more earns a lower APY in this money market account.

What to consider before opening a money market account

Important money market account terminology

  • Money market account: A type of savings account that may offer an ATM card for ATM withdrawals and/or checks.
  • Check-writing privileges: A money market account may allow you to write checks against the account. This is one of the main differences between money market accounts and savings accounts. Savings accounts usually don’t allow this.
  • Compound interest: Money that you earn for having your funds deposited with a bank.
  • Interest: The amount you have to keep in a savings account in order to avoid a monthly maintenance fee.
  • Interest rate: A number that doesn’t take into account the effects of compounding.
  • Annual Percentage Yield (APY): Takes into account the effects of compounding during the year. The best way to compare yields is to use this number, rather than comparing interest rates. The higher the APY, the more income you’ll earn on your cash.
  • Minimum balance requirement: The amount you have to keep in a savings account in…

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