Best money market accounts & rates for May 2021
- Highest Rate: BrioDirect – 0.60% APY.
- High Rate: Ally Bank – 0.50% APY.
- High Rate: First Internet Bank – 0.50% APY.
- High Rate: Navy Federal Credit Union – up to 0.50% APY**
- High Rate: CIT Bank – 0.45% APY.
- High Rate: Sallie Mae Bank – 0.40% APY.
- High Rate: TIAA Bank – 0.40% APY.
One may also ask, can you lose your money in a money market account?
Money market accounts are insured by the Federal Deposit Insurance Corp. (at banks) and the National Credit Union Administration (at credit unions), so you won’t lose your deposits even if the financial institution goes out of business.
Similarly, where can I get the highest interest rate on my money?
- Open a high-interest online savings account. You don’t have to settle for cents of interest that you may get from a traditional brick-and-mortar bank’s regular savings account. …
- Switch to a high-yield checking account. Some checking accounts have high rates, with some hoops. …
- Build a CD ladder. …
- Join a credit union.
Is it better to have a CD or money market account?
Money market accounts are better than CDs if you’re looking for a more accessible account. … MMA rates are typically higher than basic savings accounts and short-term CD rates. CDs can have higher rates than a money market account, but those are often the long-term accounts from two years and upward.
What are the disadvantages of a money market account?
Drawbacks of Money Market Accounts
- Minimum balance requirements. Every bank has different rules for the minimum amount needed to open a money market savings account. …
- Interest rates. …
- Fees. …
- Withdrawal restrictions.
Should I put my money in a money market account?
That’s because they can invest in low-risk, stable funds like Treasury bonds (T-bonds) and typically pay higher rates of interest than a savings account. While the returns may not be not much, money market accounts are still a pretty good choice during times of uncertainty.
Should I put my savings in a money market account?
If you want to earn a higher APY and you can meet a higher account minimum, a money market account is a good choice. It’s a good pick, too, for people who need easy access to their money. If you know that you won’t need the money for a while, and you want to earn an even higher APY, a CD works well.
Why is my money market interest so low?
The U.S. Federal Reserve and terrible disasters are the two main causes of decreases in the interest rates on money market investments. … Disasters lower short-term interest rates because investors take their money out of other investments, such as stock, and put it into the safest investments they can find.
What is the current money market interest rate?
Average
| Money Market Rates | ||
|---|---|---|
| Bank | Account Balance | Rates |
| Capital One 360 | $0 – $9,999 $10,000+ | 0.85% 1.50% |
| Citizens Bank | All balances | 0.01% |
What is the best cash investment?
Here are the best short-term investments in May:
Short-term corporate bond funds. Money market accounts. Cash management accounts. Short-term U.S. government bond funds.
How much should you put in a money market account?
Most money market accounts have a minimum balance of at least $2,500 (although some have lower minimums, as low as $1). If your account drops below this minimum, you may be subject to fees and other costs that can quickly deteriorate your funds and any added perks that the higher interest rate provided.
Where can I get 5% interest on my money?
There are two companies – Insight and Netspend – that offer prepaid debit cards that also come with FDIC insured savings accounts that earn 5% interest. They take some work to set up, but once you go through that process, the accounts run themselves.
How much interest will I get on $1000 a year in a savings account?
How much interest can you earn on $1,000? If you’re able to put away a bigger chunk of money, you’ll earn more interest. Save $1,000 for a year at 0.01% APY, and you’ll end up with $1,000.10. If you put the same $1,000 in a high-yield savings account, you could earn about $5 after a year.