NerdWallet’s Best Online Money Market Accounts
Interest rates are at an all-time low. As of January 10, 2013, the national average for money market account yields is just over 0.10%. But don’t give up on them just yet. You can earn up to 10 times the national average just by looking online.
Money market accounts are similar to savings accounts in that they earn interest, and limit account holders to 6 withdrawals per month. In exchange for maintaining a higher minimum balance than a savings account will typically require, most money market accounts offer higher yields and many are tiered, meaning the interest rate increases with higher balances. Some also allow check writing on the balance. Check out NerdWallet’s favorite online money market accounts below, or to learn more visit NerdWallet’s FAQ on money market accounts.
Mutual of Omaha Bank - Online Money Market (0.85% APY*)
Discover Bank - Money Market Account (0.75% APY*)
EverBank - Yield Pledge Money Market (0.61% APY*)
Ally Bank - Money Market Account (0.85% APY*)
Bank of Internet USA - Money Market Savings Account (0.75% APY*)
First Internet Bank - Money Market Savings (0.80% APY*)
Why bank online?
Online banks save a ton of money on personnel and maintenance costs because they have no physical branches. The result is more money for you. Better yet, online savings accounts are surprising easy to maintain. You have to manage your account online, but you can access your money 24/7 and transfer it between accounts anytime. You can’t talk to a representative in person, but they’re always available online or over the phone. And, if you need to withdraw money or deposit checks, you can always do that via mail, usually for free. Thus, if you’re tech-savvy, an online bank is incredibly convenient.
Should you open a money market account?
By federal law, you’re limited to six withdrawals a month with any money market account, which includes those accounts that offer checks. They are a good place to set aside money you might need to access quickly, but ideally would like to save. A money market account is great for building an emergency fund, for example, or setting aside money for a large purchase or vacation.
Looking for an account with a brick-and-mortar bank instead?
Check out our tool to find a money market account closer to home.
*Rates updated weekly