Think of a money market account as a mixture between a savings and checking account, often offering competitive interest rates and typically requiring a higher minimum balance. By placing your funds in a high-yield savings account, you’ll earn interest and you’ll hopefully also be less inclined to spend the money. Keep in mind that savings accounts are better suited to achieve a particular goal, such as maintaining an emergency fund or amassing a down payment on a home. ![]() MMAs often require a higher minimum deposit or balance, but banks and financial institutions typically reward clients for maintaining larger balances with higher rates.Ĭurrently, the average rate on an MMA with a $10,000 minimum balance in Curinos’ dataset stands at 0.54% APY, while the average rate you’ll find on a savings account with a $10,000 balance is a mere 0.23% APY. Money market account rates usually offer higher yields than what you’ll find on savings accounts, especially those offered at brick-and-mortar banks. If you were to invest $10,000 into an MMA with a 5.08% interest rate that compounds daily, you would earn more than $520 in interest over a year, assuming no withdrawals or additional contributions are made. The highest rate in the Curinos dataset sits at 5.08%, so you may be able to find higher rates in your own research. Money market accounts with a $10,000 minimum balance currently offer an average APY of 0.54%, per Curinos data, slightly higher than last week.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |