Are you earning the most from your savings and money market deposit accounts? Savings and MM accounts are the foundation of a strong financial plan, providing you with financial stability as you work to achieve your goals. There are many banks and credit unions that offer savings and money market accounts. This article aims to help you find the highest interest rates for this type of deposit account.
Of course, a high-interest rate is not the only factor to consider when selecting an account. This article will help you choose the best deposit account for your specific needs.
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How to Find the Best Money Market and Savings Interest Rates
Finding the best savings account rate is a simple matter at first glance: Just look in the right place for what you want. Looking at individual bank sites or visiting physical branches is time-consuming, so skip the individual search and look online for websites that aggregate the best deposit account rates.
- SmartAsset – SmartAsset is a major player in this space. For your convenience, we’ve partnered with SmartAsset to provide you with their live data feed. You can see their rate table below.
- Top Lists – You can check out various “top lists” by searching online. Top lists typically include online banks that provide higher interest rates than their brick and mortar counterparts.
- Alternative Options – Last but not least, there are alternatives to traditional savings and money market accounts that could provide competitive interest rates. Just remember that these options are not your typical savings accounts; you have to understand how they work before you decide to commit your money.
Remember that the best interest rate is not the only factor to consider; you should also find the fees and make sure that you maximize your earnings and convenience with your savings.
In case, it is not apparent; this page does not include all available savings account offers from all banks.
SmartAsset Recommended Savings Accounts
The following table lists banks and credit unions that offer the highest yield savings account and money market rates as of today. To get more information, you can follow the link to the bank website.
Top 10 Best High-Interest Savings Accounts for December 2019
As of right now, these are some of the best offers online with no monthly fee (updated 12/4/2019). Since the last update, about half of the banks dropped their rates further (⇓), while the other half held their rate steady. Overall, it is now rare to find a yield higher than 2%. This month HSBC Direct and BMO Harris Bank moved to first place after BBVA dropped their rate significantly.
|HSBC Direct Savings||2.05%||$1 minimum. No maintenance fees.|
|BMO Harris Bank Platinum Money Market Account||2.05%||$5,000 minimum. No maintenance fees.|
|UFB Direct Money Market Account||2.00%||No monthly maintenance fees with a $5,000.00 balance, otherwise the fee is $10.00 per month.
Minimum opening deposit of $5,000.00.$25,000 minimum to earn the highest interest rate.
|CIBC Agility™ Online Savings Account||1.85% ⇓||$0.01 minimum. No maintenance fees.|
|Live Oak Bank||1.85% ⇓||$0 minimum. No maintenance fees.|
|CIT Bank Savings Builder||1.85% ⇓||$100 minimum to open an account plus, $100 minimum single deposit per month to earn the highest interest rate.
Get up to $300 bonus when you open an account.
|Citizens Access Online Savings Account||1.85%||$5,000 minimum. No maintenance fees.|
|Wealthfront Cash Account||1.82%||$1 minimum. No fees. Unlimited free transfers.|
|Betterment Everyday™||1.78% ⇓||$10 minimum. Zero fees. You get ATM fees reimbursed worldwide, with no account fees, overdraft fees, or minimum balances.|
|Marcus by Goldman Sachs||1.70% ⇓||$0 minimum. No maintenance fees.|
|Personal Capital Cash™ High-Yield Account||1.55%||$0 minimum. No fees. Unlimited transfers.|
|BBVA Money Market Account||1.50% ⇓||$10,000 minimum plus $100 sign up bonus. You can avoid the $15 monthly Service Charge by maintaining an account balance of $10,000+ or with an automatic recurring $25 monthly transfer from a BBVA checking account|
Alternative Options to Savings and Money Market Accounts
In addition to high yield savings accounts and money market accounts, here are some alternatives that may work for you:
|Certificates of Deposit: Another option to high-interest savings is certificates of deposit. There are CDs with a term as short as 3 months and as long as 10 years. Generally, longer-term CDs pay more than savings but require a long-term commitment.|
|High Yield Checking Accounts: Generally, there are more restrictions around high yield checking to be eligible for the best rate. However, it may be worthwhile if you can meet the requirements.|
|Lending Club and Prosper||Lending Club and Prosper are social lending sites where you can invest in 3-year and 5-year loans with as little as $25 per loan. The interest rate you earn depends on the quality of the loan (based on borrower’s credit rating, loan amount, loan length, etc.) Currently, Lending Club claims “Our 11-year track record represents average historical returns of 4–8% per year” and Prosper claims “Historical Returns of 5.3% on average”.
IMPORTANT: Please note that there are unique risks associated with social lending.
|Discount Brokers: Many discount brokers offer a money market account that acts as the default account for funds deposited into your brokerage account. It usually pays some interest (not as high as an online savings account), but a brokerage account also gives you access to other investment opportunities, e.g., income investing in dividend-paying stocks.|
If you know a bank that offers a higher rate than the ones above, we’d love your insight in the comments.
Frequently Asked Questions and Answers
What is the best way to choose a savings account?
When selecting a savings account, determine the features that are most important to you. For example, you may order the features as follows: high-interest rates, excellent customer service, low fees, and a good reputation.
Are online savings accounts better than a traditional one?
Online savings accounts are more popular each day. Typically, you have to complete most of your transactions online or using the ATM, since there may not be brick and mortar locations in the “real” world. In exchange, you enjoy a higher interest rate than average and pay lower fees.
How does FDIC insurance protect savings accounts?
When selecting a bank, make sure that it is FDIC insured. The federal government offers this insurance to participating banks, and it protects your money (up to $250,000 per depositor at each banking institution) against loss if the bank goes out of business.
What does the FDIC deposit insurance cover?
FDIC insurance covers all deposit accounts, including savings accounts, money market accounts, certificates of deposit (CDs), and checking accounts.
Please review the information associated with each offer before you sign up. Rates and conditions change constantly, and I have reported what I believe to be the most accurate information at the time the article was updated.
Pinyo Bhulipongsanon is the owner of Moolanomy Personal Finance and a Realtor® licensed in Virginia and Maryland. Over the past 20 years, Pinyo has enjoyed a diverse career as an investor, entrepreneur, business executive, educator, financial literacy author, and Realtor®.