Learn the way a lot you can earn with right this moment’s cash market account charges. The Federal Reserve lower its goal fee thrice in 2025. So deposit charges — together with cash market account (MMA) charges — have been steadily declining. It’s extra vital than ever to match MMA charges and make sure you earn as a lot as doable in your steadiness.
The nationwide common cash market account fee stands at 0.56%, in keeping with the FDIC.
Even so, a number of the high accounts are presently providing charges of 4% APY and up. Since these charges might not be round for much longer, contemplate opening a cash market account now to benefit from right this moment’s excessive charges.
Right here’s a have a look at a number of the high MMA charges obtainable right this moment:
The quantity of curiosity you possibly can earn from a cash market account depends upon the annual share fee (APY). It is a measure of your whole earnings after one 12 months when contemplating the bottom rate of interest and the way typically curiosity compounds (cash market account curiosity sometimes compounds every day).
Say you set $1,000 in an MMA on the common rate of interest of 0.56% with every day compounding. On the finish of 1 12 months, your steadiness would develop to $1,005.62 — your preliminary $1,000 deposit, plus $5.62 in curiosity.
Now let’s say you select a high-yield cash market account that provides 4% APY as an alternative. On this case, your steadiness would develop to $1,040.81 over the identical interval, which incorporates $40.81 in curiosity.
The extra you deposit in a cash market account, the extra you stand to earn. If we took our similar instance of a cash market account at 4% APY, however deposit $10,000, your whole steadiness after one 12 months can be $10,408.08, which means you’d earn $408.08 in curiosity.
