Best money market accounts of October 2025 (Up to 4.25%)

BANKRATE EXPERT FAQ

What our industry experts are saying

D’Andre Clayton

Marguerita Cheng

Mark Hamrick

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D’Andre Clayton

Co-founder, Clayton Financial Solutions

All money market accounts are not created equally, so you want to check for competitive rates. Check what the minimum balance requirements are because some require thousands of dollars. Obviously, the fees are important; that goes without saying. The last thing you want to do is have fees so high that they destroy the interest earnings. Some money market accounts even have tiered rates. For example, higher balances have higher interest earnings, possibly. Finally, ensure FDIC/NCUA insurance. Always confirm your money is covered up to $250,000 per depositor, per institution.

Marguerita Cheng

CFP, Chief Executive Officer at Blue Ocean Global Wealth

It is important to have cash reserves for any emergencies or opportunities that arise. Money market accounts may offer a higher yield than a checking account or traditional savings account. Money market accounts allow individuals to maintain liquidity and access with the opportunity for their cash to work harder for them.

Mark Hamrick

Senior Economic Analyst, Bankrate

The widespread expectation right now is that interest rates will head lower over the foreseeable future. The Federal Reserve has set the tone in that direction, though we still live in an uncertain world. As we all strive to meet our financial goals, savers should focus on earning the most competitive yields, regardless of where rates go next. The good news is a constant: the top-yielding accounts pay far more than the average ones. It makes sense in the current environment to consider locking in rates before they move lower. Keep in mind that some savings must remain liquid for emergencies. For those with a longer-term horizon, certificates of deposit with a term that fits your needs can be an excellent choice.

• How Bankrate calculates the national average

  In June 2023, Bankrate updated its methodology that determines the national average savings account rates. More than 500 banks and credit unions are surveyed to generate weekly national averages. Among these institutions are those that are broadly available and offer high yields, as well as some of the nation’s largest banks. 

A money market account works similar to a savings account, where you can deposit and withdraw money and earn interest. Money market accounts might also offer check-writing privileges.

How to open a money market account

A money market may pay a competitive rate and provide some of the key perks of a checking account. Here’s everything you need to know about opening one.

Learn more

• Is a money market account safe?

  Money market accounts are safe at federally-insured banks or credit unions as long as they’re within limits and guidelines. When banks are covered by the Federal Deposit Insurance Corp. (FDIC)  for example, funds are covered up to $250,000 per depositor, per insured bank for each account ownership category. An account at a credit union that’s a member of the National Credit Union Administration (NCUA) offers the same insurance coverage. Whether your money market account is in a member FDIC bank or a member NCUA credit union, your money that’s within limits and guidelines is protected and backed by the full faith and credit of the U.S. government should the bank or credit union fail.
  
  To check whether a bank you're considering is FDIC-insured, use the FDIC’s BankFind tool, which can help you realize if multiple banks use the same FDIC certificate, or NCUA’s Credit Union Locator. Always double-check with the FDIC or NCUA and your financial institutions to confirm insurance coverage.

• What is a money market account?

  A money market account is a type of savings account offered by banks and credit unions that typically pays a higher interest rate than regular savings accounts. There are sometimes limits on the number of certain withdrawals or transfers you can make each month.

• How does a money market account work?

  A money market account is different from a savings account in that it has some transactional features. For example, a money market account may come with a debit card and checks. These features make it easier to access your money. Money market accounts offer a combination of interest and liquidity.

• Are money market rates fixed?

  Most money market rates are variable, not fixed. That means the rate and APY you receive can rise or fall as market conditions change. A fixed introductory APY is the exception. During the promotional period, the fixed yield gives you a certain APY for a specific period of time. You might lose the fixed yield, however, if you don’t follow certain rules. An introductory rate may also require a deposit made with new money, which usually must come from outside the bank.

• Are money market accounts taxed?

  All taxable and tax-exempt interest must be reported on your federal income tax return. Most interest that you receive or that’s credited to an account that you can withdraw without penalty is taxable income in the year it becomes available to you, according to the Internal Revenue Service. Consult with an accountant to answer your specific tax questions.

• Banks we monitor

  Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Airlines Federal Credit Union, American Express National Bank, Apple Bank, Axos Bank, Banesco USA, Bank of America, Bank of Hope, Bank5 Connect, BankPurely, BankUnited Direct, Barclays Bank, Bask Bank, BMO Alto, BMO Bank, Boeing Employees’ Credit Union, Bread Savings, BrioDirect, Capital One, CFG Bank, Charles Schwab Bank, Chase Bank, CIBC Bank USA, CIT Bank, Citibank, Citizens Access, Citizens Bank, Colorado Federal Savings Bank, Comerica Bank, Connexus Credit Union, Credit One Bank, Cross River Bank, Customers Bank, Delta Community Credit Union, Discover Bank, E*TRADE from Morgan Stanley, East West Bank, Emigrant Bank, Emigrant Direct Bank, EverBank, Fifth Third Bank, First Citizens Bank, First Internet Bank of Indiana, First National Bank of America, First Tech Credit Union, FNBO Direct, Forbright Bank, FourLeaf Federal Credit Union, Frost Bank, Golden 1 Credit Union, Heritage Bank, Huntington National Bank, iGOBanking.com, Jenius Bank, KeyBank, Lake Michigan Credit Union, Laurel Road, LendingClub Bank, Limelight Bank, Live Oak Bank, M.Y. Safra Bank, M&T Bank, Marcus by Goldman Sachs, Merrick Bank, Mountain America Credit Union, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, North American Savings Bank, Northpointe Bank, Openbank, Patelco Credit Union, Peak Bank, Pentagon Federal Credit Union, PNC Bank, Popular Direct, Presidential Bank, Provident Bank, Quontic Bank, Quorum Federal Credit Union, Randolph-Brooks Federal Credit Union, Regions Bank, Ridgewood Savings Bank, Rising Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, SoFi, SouthState Bank, Star One Credit Union, State Employees' Credit Union, Suncoast Credit Union, Synchrony Bank, Synovus Bank, TAB Bank, TD Bank, Texas Capital Bank, The Federal Savings Bank, Third Federal Savings and Loan, Truist Bank, UFB Direct, Umpqua Bank, US Bank, USAA Bank, Valley Bank, Varo Bank, Vio Bank, VyStar Credit Union, WebBank, Webster Bank, Wells Fargo, Western State Bank, Zions Bank, ZYNLO Bank