Money market account rates remain elevated across the banking sector, with top accounts offering annual percentage yields above 4%. The national average interest rate for these accounts is currently 0.58%, according to Federal Deposit Insurance Corporation data.
Between July 2023 and September 2024, the Federal Reserve maintained its federal funds rate target range at 5.25% to 5.50%. As inflation cooled and economic conditions improved, the Fed implemented three rate cuts that year.
In 2025, the central bank made three additional rate reductions. The federal funds rate now stands between 3.50% and 3.75%. Deposit account rates have been declining steadily.
Money market accounts function similarly to savings accounts, providing interest on balances while potentially including debit card access and check-writing capabilities. These features offer account holders liquidity for their funds.
For conservative savers, money market accounts present an appealing option due to FDIC insurance protection and principal preservation. These accounts cannot lose principal value.
Current money market account rates vary significantly between financial institutions. While some banks offer rates well above 4% APY, rates generally do not exceed 4.50%. No money market accounts currently pay 7% interest.
Accounts offering 7% interest are extremely rare and typically appear as limited-time promotions on checking accounts rather than money market products.