Best money market account rates reach 5.00% APY on January 6, 2025

As of January 6, 2025, the best money market account rates range from 4.5% to 5.00% APY, significantly higher than the national average of 0.66%. This marks a continuation of elevated rates following recent Federal Reserve interest rate hikes. Historically, money market account rates have fluctuated due to changes in the Federal Reserve's target interest rate. Rates fell to near zero during the COVID-19 pandemic but have since risen sharply since 2022, although they are now beginning to decline. When choosing a money market account, consider factors beyond the interest rate, such as minimum balance requirements and fees. Many accounts offer competitive rates without restrictions, and it's important to ensure the account is federally insured.