This list provides five of the best money market accounts of 2018 with the highest rates based on the purpose of the account and the minimum deposit required. It includes the best money market account for small balances, the best money market account for balances of over $25,000, the best money market account for high balances, the best money market account to save for college, and the best money market account with a guaranteed rate for one year. The best accounts for each category are Premier Members Credit Union, BankPurely, Customers Bank Ascent Money Market Savings, Sallie Mae Money Market Account, and VirtualBank eMoney Market respectively. View more money market accounts available to you:
What is a Money Market Account?
A Money market account is a kind of savings account offering some features of both checking accounts and investment accounts. To their functionality, money market accounts usually offer better interest rates than conventional savings accounts but include FDIC insurance to safeguard the account. Money market accounts operators invest the funds like mutual funds, but deposits can only be made into investments with very low risks such as government bonds. Money market accounts allow the issuance of checks. However, withdrawals are limited to six times per month similar to savings accounts. Money market accounts are attractive because of their interest rates and account features in some conditions. Like a conventional savings account, money market accounts are a good source of emergency funds, savings for down payment and other savings targets where your principal is not at risk but want to access better interest rates than what a checking account offers. If you thinking of opening a money market account, this is a look at five of the best money market accounts based on their interest rates in 2018.
Best Money Market Accounts of 2018
1. Best for Small Balances: Premier Members Credit Union
One of the best money market accounts in 2018 is Premier Members Credit Union. It offers the best interest rates for small balances with up to 4.00% APY. Premier Members Credit Union pays 4 percent APY on the first $2,000. It pays higher interest rates on lower balances and has the highest APY among all the money market accounts. It offers a variety of rates based on the deposit size. A $5,000 balance yields a blended 2.50 percent APY whereas a balance of over $250,000 yields anywhere between 0.30 percent and 0.44 percent APY. It requires no minimum balance. Only one money market account per type per social security number is allowed. The money market accounts offered are IRA Money Market, Business Money Market tied to a business account, and Money Market.
2. Best Money Market Account for $25,000+ Balances: BankPurely
Among the best money market accounts for 2018 is BankPurely. BankPurely offers the best money market account for balances of over $25,000 with an APY of 2.25%. Besides Premier Members Credit Union, BankPurely offers the highest interest but gives the highest APY for a minimum deposit of $25,000. The minimum opening balance required is $25,000 in order to earn interest. For every PurelyMoneyMarket account opened, the bank plants a tree as a part of their green initiative named PayItGreen.
3. Best for High Balances: Customers Bank Ascent Money Market Savings
The best money market account for high balances in 2018 is Customers Bank Ascent Money Market Savings. It offers the highest interest of a minimum of 2.25% APY which is guaranteed thru June 30, 2019. The minimum opening deposit of is required to earn the above mentioned APY is $25,000. Deposits under $25,000 do not earn any interest. The account needs to be funded within 30 days of approval of the application; otherwise, it is closed.
This interactive list provides the most comprehensive comparisons of rates of money market accounts from banks and credit unions in all 50 states. You enter your deposit amount and your ZIP code and it gives you a list of the best rates in real time based on your location.
4. Best to Save for College: Sallie Mae Money Market Account
Sallie Mae Money Market Account is one of the best money market accounts in 2018 with 2.12% APY. It is the best money market account to save for college. Sallie Mae is best known for its student loan business and with its low-risk account and high APY, it makes saving for college education easier. Sallie Mae is closely connected with higher education as well. The money market account requires no minimum balance and no monthly maintenance fee is involved. The bank charges a fee for overdraft or stopped payment but not on any inactivity or low balance fees.
5. Best Guaranteed Rate for One Year: VirtualBank eMoney Market
VirtualBank eMoney Market is among the best money market accounts for 2018. It offers the best-guaranteed rate for one year of 2.01% APY. VirtualBank is a subsidiary division of IberiaBank located in Louisiana. VirtualBank eMoney Market offers the highest guaranteed APY of 2.01 percent for one year to new account holders which is the best among its competitors. It has a low minimum opening deposit of $100 and requires a daily minimum balance of $100 to avoid a monthly service charge of $5. It offers free online banking, mobile banking, and free mobile deposits.
This calculator computes the compound interest earnings on money market accounts given the interest rate, length of time, initial deposit, and periodic deposit amount. It also shows a year-to-year investment growth chart.