The Best Money Market Accounts

The 5 Best Money Market Accounts for 2020

The best money market account accounts give you high rates (i.e. high APY) and good features (e.g. checks and ATM cards).

It’s like having a high-yield savings account and checking account rolled into one.

But there are a TON of money market accounts out there. That’s why we want to give you a list of a few we like to help make your choice a little easier.

The 5 Best Money Market Accounts

Discover Bank Money Market Account

Discover Bank is great for people looking for a more digital banking experience. They have an intuitive app you can use to deposit checks, find an ATM, and even freeze a debit card if you lose it. Their rates are also some of the best out there.

  • 1.55% APY for balances less than $100,000
  • 1.60% APY for balances more than $100,000
  • No minimum balance fees
  • No monthly fee
  • 60,000 ATM network
  • Debit card and checks (limited to six transactions per month)

TIAA Bank’s Yield Pledge Money Market

TIAA Bank offers a money market account with a “yield pledge.” That means that they “guarantee that your yield will always be high” by comparing and adjusting their rates against their competitors each week to make sure they’re in the top 5% of accounts. They also have a host of lucrative features such as mobile check deposits and ATM fee reimbursement (for accounts with at least $5,000).

  • 1.75% APY
  • $500 to open account
  • No monthly fee
  • ATM free reimbursement for accounts with at least $5,000
  • 24/7 customer support
  • Mobile banking

CIT Bank Money Market Account

The CIT Bank’s money market account offers one of the highest rates out there with 1.85% for accounts with a minimum of $100—which isn’t that high as far as minimum deposits go. There’s also no monthly fees. An all around great money market account.

  • 1.85% APY
  • $100 to open account
  • No monthly fees
  • Handy mobile app for convenient banking

SallieMae Money Market Account

SallieMae offers a fairly lucrative money market account with 1.75% APY and zero minimum balance required. Plus it comes with nice features like checks.

  • 1.75% APY
  • No minimums to open
  • No monthly fees
  • Good online platform
  • Checks

BMO Harris’s Platinum Money Market Account

BMO Harris offers the Platinum Money Market Account. Depending on where you live, this account might provide some of the highest interest rates in the country at 1.95%. Granted, you’ll need a minimum balance of $5,000. Anything below that rate earns .05% APY — which isn’t great. But if you have the money, this can be a very lucrative option.

  • 1.95% APY for balances at $5,000 or more (depending on your location)
  • .05% APY for balances less than $5,000
  • No monthly fees
  • No minimums
  • Mobile banking

Money Market Accounts Vs. Savings Accounts Vs. Checking Accounts

Though money market, savings, and checking accounts share a lot of similarities, they actually vary in small but important ways.

First let’s take a look at the definition of each:

Savings account: A bank account where you can store money while earning interest. It is harder to get your money from a savings account and typically takes 3-5 business days before you can do so. Transactions are typically limited.

Checking account: A bank account that allows you to withdraw and deposit your money more easily. With tools like ATMs, checks, and debit cards, you have much easier access to your funds. Typically earns little interest (if any at all). Transactions are typically unlimited or have a higher ceiling.

Money market account: A bank account that is a hybrid of savings and checking accounts. You can store your money there and earn interest long term. Also, you have easy access to it via ATMs, checks, and debit cards. Transactions are typically limited.

So a money market account is essentially the best of both a savings account and checking account. Does that mean that you should only get a money market account and not a savings or checking account? Absolutely not.

Your decision ultimately depends on your preferences and goals.

Do you want to save your money but also have easier access to it in case of emergencies? A money market account might be a good decision.

Do you plan on using your money often each month? Then you’ll want to get a checking account.

Are you saving long term and don’t even want the temptation of accessing the money? Get yourself a savings account.

In reality, you might want to get all three — which is great! Your personal finance system is unique to you. What it ultimately looks like is your decision.

How to Choose The Best Money Market Account

When looking for the best money market account for you, you need to look at two things: The bank and the accounts themselves.

After all, the money market account might look great—but if the bank is bad, you’re not going to have a good experience.

(cough Bank of America cough)

To find a good bank, you’ll want to look at three things:

  1. Trust. You need to find a bank that you trust to not do underhanded things. Trust is something some big banks like Wells Fargo and Bank of America do not have. You can’t trust banks that nickel-and-dime you through minimums, overdraft fees, and expenses.
  2. Convenience. You need a bank that you can take advantage of and is readily available to you. You need to be able to get your money easily, and also make deposits when you need to. Luckily, many banks now come with handy mobile apps and great customer support teams.
  3. Features. The best banks offer the best features. They will have things like sub-savings accounts, debit cards, free checks, plenty of ATM locations, and more. Be sure to research a bank’s features before signing on with them.

When it comes to money market accounts, you’ll want to take a look at just two things:

  1. High rates. A high APY can help you save and earn more in the long term.
  2. Good features. Just like banks as a whole, a good money market account will come with convenient features that make your life easier—and help you earn more money.

The most important rule to keep in mind: Don’t chase rates.

First, interest rates are constantly changing. Even the rates we’ve talked about above are liable to change.

Second, the difference between different rates is often tiny. So tiny that it’s not worth the effort to find the biggest rate you can.

For example, imagine a 1% rate difference on a balance of $10,000. That’s $100 / year or $8.33 / month. That’s a small win. So small you’d be better off focusing on the Big Wins.

Do yourself a favor and don’t chase rates.

Making Your Choice

The best money market account for you is one that has good rates and good features. BUT you need to also look at the bank offering the account too.

After all, you don’t want to sign a contract with a bank that nickel-and-dimes you at every turn.

If you’re interested in learning more about the banks and accounts we love and trust here at I Will Teach, here are a few articles you should check out:

The Best Money Market Accounts is a post from: I Will Teach You To Be Rich.