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5 Best Money Market Rates for 2018

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The best money market rates today pay interest in the top 5% of all deposit accounts. These rates come from online banks. Here’s our list of the top 5.

best money market rates

I’ve never been a big saver. And that’s especially when it comes to putting money into an online savings account or money market. During the adult period of my life, where I had disposable income, rates have been terrible. Over the last 18 months, however, rates have steadily been on the rise. And today there’s good reason to put money away in an online money market account.

Why should you open a money market account?

  1. All money is FDIC insured for up to $250,000 per depositor, per bank. This means that the federal government has insured your money should anything happen to the bank holding your funds.
  2. Your portfolio is diversified. A strong financial balance sheet typically consists of investments from across the spectrum. Funds, stocks, deposit accounts etc. Owning a great money market account is important to achieve that portfolio.
  3. Emergency funds are available. When you have savings in a money market account, you can draw from it immediately or transfer it to another account in a business day or two. Having funds on hand for a “worst case scenario” is always a smart financial decision.

Below you’ll find a list of the best money market accounts the internet has to offer. If you think there’s a bank out there that can compete with the offers you see below, feel free to leave a comment and we’ll see if they deserve to be added.

Best Money Market Accounts

CIT Bank: We start with the very new CIT Bank Money Market account. It’s a little different and more restrictive than most money market accounts. But it still packs a big punch. Starting May 24th, 2018, the CIT Money Market account offers a 1.85% APY, which is far and away the best of any savings or MMA on the market today.

But I did say it’s a little restrictive. Currently, there is no debit card associated with the account (although they are coming in the future). Also, there is no check writing available (and it will not become available). To access your funds, you can send an electronic transfer to another bank or send a wire transfer. You can also use PeoplePay to send money to anyone with a bank account or PayPal account or request a check through the mail.

Six withdrawals are allowed per month and additional withdrawals cost $10.

  • Minimum deposit to open an account is $100

UFB Direct: UFB is a bank that isn’t well know, but it offers a top notch interest rate. All balances earn a 1.60% APY. In order to stay fee free on the account, you must maintain an average daily balance of $5,000. This is also the minimum deposit requirement, so it prices out a fair amount of potential customers.

For that high dollar requirement, you are provided quality account features. UFB offers free mobile deposit, free “myDeposit”, an app that allows you to deposit checks and free postage paid envelops to mail checks if you need to. Also, a free Visa debit card is included, to make your withdrawals or pay for things from your Money Market account.

  • Minimum deposit to open an account is $5,000

EverBank : The Yield Pledge Money Market account from EverBank requires a $5,000 minimum deposit to open. When you meet this requirement, Everbank refunds all ATM fees refunded (if you use a foreign ATM for example). EverBank offers a first year APY of 1.50% for balances up to $250,000. After the first year, the APY shifts lower to a tiered structure between 1.05% – 1.25%.

The excessive transfer fee is $10, cashiers check fee is $10 and the returned deposit fee is $10. EverBank provides you with a debit card that can be used for any purchase or cash withdrawal. EverBank has a wide variety of other deposit products that include the Yield Pledge guarantee. There is a mobile app that allows you to make check deposits and if you live in the Jacksonville area, you can go to a branch if needed.

  • Minimum deposit to open an account is $5,000

Cap One 360: Cap One 360 offers an APY of 1.60% on their Money Market account for customers who keep a balance of over $10,000. For balances with less, the APY drops to a poor 0.85%. Perhaps the biggest benefit of the Cap One 360 MMA account is that there is no requirement to avoid a monthly fee. There is no minimum deposit required to open this Money Market account.

Cap One will issue a debit card for purchases and withdrawals and provide access to their mobile app. While I personally do not have an account with Cap One 360, my wife does. I have to say the mobile app is far and away the best of any bank. Easy to use, fast, and it allows you to move your money in a variety of ways. Depositing checks with their mobile check deposit feature is also a snap.

Minimum deposit to open an account is $1

Discover Bank: Cracking the top five is Discover Bank, and their High Yield MMA account. This account currently offers a 1.50% APY on balances less than $100,000 and a 1.55% APY on balances greater than $100,000. Included with this account is a debit card that allows for unlimited cash withdrawals. The same six per month withdrawal threshold must be adhered to for transfers however.

Discover is straight forward about their fee structure. No ATM fees, no check fees, no account closure fees but there is a $10 monthly maintenance fee for balances of less than $2,500. There’s also a $15 excessive withdrawal fee and a $30 fee for outgoing wire transfers (but nothing to make ACH transfers).

  • Minimum deposit to open an account is $2,500

Updated June 13, 2018 and originally published March 22, 2018.

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