Best Money Market Accounts

Earn Interest With One of These Checking-Savings Hybrid Accounts

Updated February 03, 2023

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A money market account is a useful financial tool to save money with the added benefit of liquidity, the ability to access your cash should you need to make a withdrawal.

Acting as both a savings account and a checking account, money market accounts commonly pay interest, allow for a limited number of free withdrawals per month, and offer the ability to write checks on the account. Some also feature ATM and debit card access to your funds.

However, financial institutions have different policies for their money market accounts. Rates, fees, withdrawal policies, and other features should be considered when choosing your account. We've compiled a list of the top national contenders, making it easy to choose the best money market account for you.

The Best Money Market Accounts for 2023

Best Overall: Prime Alliance Bank
Best for Small Balances: Patelco Credit Union
Best for Debit Users: Axos Bank
Best for Flexibility: Ally Bank
Best IRA Options: Synchrony Bank

You don't need to open a money market account at the same bank or credit union where you have checking or savings accounts. Find the best rates and features for your money market account and connect your financial institutions via online banking.

Best Overall : Prime Alliance Bank

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Want to earn as much as you can, but do not need ATM or debit transactions? Prime Alliance’s money market account is a rate leader that offers a simple, straightforward account at a great rate, making it our top choice.

Pros

Competitive interest rate
No minimum balance requirement
No monthly maintenance fees

Cons

Withdrawals limited to six per month
No ATM availibility
No debit card access

For those who want to park their cash without the need for frequent withdrawals, Prime Alliance provides an easy-to-use account that pays an interest rate of 3.58% and a variable APY of 3.65%.

Founded in 2004 in Woods Cross, Utah, Prime Alliance has zero monthly fees and no minimum balance requirement.

Withdrawals, limited to six per month, can be made by check, electronic payment, or electronic transfer. ATM or debit card transactions are unavailable with this account.

Best for Small Balances : Patelco Credit Union

Open Account

With an interest rate structure that favors small balances, no monthly fees, no balance minimums, and free checks, Patelco Credit Union is our winner for the best money market account for small balances.

Pros

Competitive interest rate for balances of $2,000 or less
No monthly maintenance fees or minimum balance requirement
ATM and Zelle capability

Cons

Non-competitive rates for larger balances
Check writing limited to three checks per month
Free credit union membership is required

Patelco Credit Union, headquartered in California, is a credit union that offers a free membership process. Members benefit from Patelco’s money market account, which pays a high-interest rate for small balances without monthly maintenance fees.

The interest rate on Patelco’s Money Market account is a declining rate, where members earn the best rate on low balances. Your first $2,000 earns 2.00% APY, and the next $3,000 earns 1.5%.

Rates decline further to 1.0%, paid on the next $5,000 up to balances of $10,000. Balances above $10,000 and up to $50,000 earn 0.25%. Deposits of over $50,000 and up to $100,000 earn 0.20%. The lowest rate bracket pays 0.15% for balances of more than $100,000.

Patelco offers the convenience of Zelle for payment transactions and limits check writing to three per month.

Best for Debit Users : Axos Bank

Open Account

If having access to your money market funds via debit card is a necessary feature, the regular no-fee High-Yield money market account from Axos Bank is an excellent option. Its combined ATM/debit card coupled with an APY of 0.25% earns it our honor for the best money market account for debit users.

Pros

Highly competitive interest rate
No minimum balance requirement
No monthly maintenance fees

Cons

Initial minimum deposit of $1,000
No refunds on ATM charges
No brick and mortar locations

Axos was founded in San Diego in 2000 as one of the first digital banks. Whether you use your debit card for transactions or initiate online payments and transfers, you can do that without monthly fees with an Axos account.

All balances earn the 0.25% APY from Axos High-Yield money market account with an initial minimum deposit of $1000 and without a minimum monthly balance requirement.

Although it offers nationwide access to ATMs using its online locator tool, Axos does not provide any ATM fee reimbursements.

Read the full Axos Bank review.

Best for Flexibility : Ally Bank

Open Account

Although Ally doesn’t offer the most competitive rate in money market accounts, it offers many ways to access your money. That’s why we’ve chosen it as the best money market account for those who need transactional flexibility.

Pros

Competitive interest rate
No minimum balance requirement or monthly fees
ATM/debit card and Zelle capability

Cons

Withdrawals limited to six per month
ATM fee reimbursements capped at $10 per month
No brick and mortar locations

Once the financial division of General Motors, Ally transitioned to an online-only bank in 2009. As of 2022, Ally is the largest digital bank and is ranked 22nd in overall bank size in the U.S.

Ally combines multiple customer-friendly facets into its money market account while paying 3.40% APY on all balances as of February 2023. There are no minimum balances to open or maintain an account and no monthly maintenance fees. However, withdrawals are limited to six per month.

Ally provides customers with a combined ATM/debit card, and Ally will reimburse you for up to $10 for ATM fees each month. With Ally, all money market checks are free and Ally’s participation in the Zelle network makes it easy for you to electronically send or receive money.

Read the full Ally Bank review.

Best IRA Options : Synchrony Bank

Open Account

In addition to a traditional money market account, Synchrony Bank offers an IRA money market account to help boost your retirement savings and you can choose between a traditional IRA or Roth IRA account. This feature makes Synchrony Bank our choice for IRA money market options.

Pros

Competitive interest rate
No minimum balance or monthly fees for traditional or IRA money market accounts
IRA Rollover options available

Cons

Tax and penalty consequences on withdrawals from IRA money market accounts
Required Minimum Distributions (RMD) may apply
Income affects contribution limits to IRA money market accounts

You can transfer your current IRA, roll over your employer-sponsored IRA, or roll over a deceased account holder’s Qualified Retirement Plan to a beneficiary IRA with Synchrony Bank.

Synchrony Bank pays a competitive interest rate of 2.25% APY on all balances, with zero maintenance fees, and no minimum opening or ongoing balance requirements for both its traditional and IRA money market accounts.

Within IRS rules, you can contribute to your IRA money market account at any time and access your balances online or with the Synchrony Bank app. Whether you choose a traditional IRA or Roth IRA account, IRS rules apply for both early withdrawal penalties and taxation.

You can deposit to your IRA money market through electronic transfer (ACH) from a non-Synchrony Bank account that you’ve linked to your account or by mobile check deposit via the Synchrony Bank mobile app. Paper deposits such as personal or cashier’s checks are accepted by mail.

Read the full Synchrony Bank review.

Compare Providers

Financial Institution	Why We Picked It	Key Benefit
Prime Alliance Bank	Best Overall	Competitive interest rate for any balance
Patelco Credit Union	Best for Small Balances	Higher APY for smaller balances
Axos Bank	Best for Debit Users	Full debit card access with no monthly fees
Ally Bank	Best for Ultimate Flexibility	Access your funds online, through ATM, debit, or Zelle
Synchrony Bank	Best IRA Options	Rollover an existing IRA to an IRA money market account

Frequently Asked Questions

What Are the Limits of a Money Market Account?

Money markets generally aren’t a substitute for your checking account because, in exchange for a higher interest rate, most money market accounts limit how many transactions you can make in a month and not all accounts offer ATM and debit card privileges.

What Should You Use a Money Market Account For?

Money market accounts are well-suited to those banking customers who have money in savings that they’d like to keep separate from their transactional checking account, and for whom the ability to write checks is useful. A money market can serve as the perfect hybrid between a savings account and a checking account.

How Safe Are Money Market Accounts?

Money market accounts offered by banks and credit unions are just as safe as any other deposit account offered by these institutions, such as checking, savings, and certificate of deposit accounts. That’s because the vast majority of institutions are federally insured by the FDIC for banks and the NCUA for credit unions with up to $250,000 insured per account holder.

Are Money Market Accounts Taxed?

The interest paid on a money market account is taxed the same way as the interest paid on any other kind of bank account. Whether you earn money on savings, checking, or CD account—or some combination—all of that interest will be reported to the IRS at the end of the year as interest income, which is taxed the same as your regular income.

The Bottom Line

Money market accounts can pay a competitive interest rate on your money while also offering various customer-friendly features. Prime Alliance Bank is our choice for the best overall money market account based on its interest rate, zero fees, and no minimum balance requirements. The other banks on our list feature debit card access, high rates for small balances, and IRA money market options, options that may fit your needs and give you peace of mind that you’re earning as much as you can for the features you value most.

How We Chose the Best Money Market Accounts

To be able to serve the largest number of readers possible, we looked only at money market accounts that are available nationwide. The accounts can be opened online from anywhere in the country. Roughly 120 accounts made this first cut.

We then sorted that list based on the interest rate, as the best accounts are going to be those that rank highest on earning ability. This filter distilled our list to about two dozen accounts that currently pay 0.50% APY or higher.

Lastly, we dug into these to find which ones charge no monthly fee, have reasonable minimum balance requirements, and offer an attractive mix of options and features, resulting in our five winners above.

Best Money Market Accounts — d3sign / Getty Images

Article Sources

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