2 Reasons Money Market Accounts Are Worth It — Even After Fed Rate Cuts

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The personal finance world (including yours truly) held its collective breath on Sept. 18 as we waited for the verdict from the Federal Reserve. We knew we’d get some kind of benchmark interest rate cut, but we weren’t sure how much it would be.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
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Click here to read our full review for free and apply in just 2 minutes. And as it turned out, the Fed opted to drop its rate by half a percentage point — and since rates on consumer bank accounts tend to follow suit, rates on certificates of deposit (CDs), savings, and money market accounts (MMAs) have followed suit.Money market accounts might not be on your radar, but if you’re interested in the perks of both checking and savings accounts, MMAs are sort of like a hybrid of the two. Here’s a closer look at these accounts — and why you should consider them for your hard-earned cash.1. High APYsThe historically high rates on bank accounts we’ve seen over the last few years are on their way out — but that doesn’t mean we shouldn’t stay on the high-APY gravy train for as long as we can. Thankfully, money market accounts offered by online banks pay rates many times higher than the current national average, which is just 0.61%.With that rate, you’d earn just $61 on a $10,000 balance over a year. But what if you instead picked one of the best money market accounts and earned a rate of 4.00% on your money? After a year, you’d have an extra $408.Have I piqued your interest? Click here for the best money market accounts we’ve found.It’s important to note that based on the way interest rates are trending now (namely, downward), it’s unlikely you’ll get that same high APY for another year at this point.That said, you’re extremely likely to beat the national average rate (which includes big banks that pay a measly 0.01% on savings products) with an MMA at an online bank, even after future Fed rate cuts. These higher APYs are what MMAs have in common with high-yield savings accounts.2. Easy spending accessMMAs resemble checking accounts in the money access they offer. Many money market accounts come with a linked debit card, meaning you can make purchases directly from the account. Some also offer check-writing privileges (paper checks don’t have the safety features of credit cards or even debit cards, but they’re still handy in some situations).Either option means one-step access to your cash — you won’t need to transfer it to another account, like you might with an online savings account. Just be careful not to make too many withdrawals. Checking accounts don’t limit your transactions, but MMAs might. One of these accounts likely isn’t a good choice to entirely replace your checking account.What should you look for in an MMA?Have I convinced you that money market accounts are worth a closer look? Hooray! Before you open one, make sure you look for these features.FDIC insuranceThis one is paramount. Reputable banks are members of the FDIC, which means your money with these banks is protected for up to $250,000 per depositor, per ownership category. Don’t do business with a bank that lacks this. You can find FDIC documentation on the bank’s website if you’re unsure.A minimum deposit requirement you can meetThis is less common now, but in the past, some MMAs had minimum opening deposit requirements of several thousand dollars, which is likely out of reach for a lot of potential account holders. You may still have to pony up some dough to open the account, though.Minimal (or ideally no) feesThe best MMAs keep fees to a minimum. Don’t open one with a bank that charges monthly maintenance fees — why pay money to keep your money in the bank?A well-rated mobile appSince the best MMAs are offered by online banks, you’re likely to enjoy an excellent mobile app with features like peer-to-peer money transfers, budgeting tools, free credit score updates, and more. Check reviews of the mobile app for any bank you’re considering to see what other customers think.All in all, money market accounts can be pretty convenient and lucrative. Keep them in mind if you need a new home for your money — even now that rates have begun to fall.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

The personal finance world (including yours truly) held its collective breath on Sept. 18 as we waited for the verdict from the Federal Reserve. We knew we’d get some kind of benchmark interest rate cut, but we weren’t sure how much it would be.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

And as it turned out, the Fed opted to drop its rate by half a percentage point — and since rates on consumer bank accounts tend to follow suit, rates on certificates of deposit (CDs), savings, and money market accounts (MMAs) have followed suit.

Money market accounts might not be on your radar, but if you’re interested in the perks of both checking and savings accounts, MMAs are sort of like a hybrid of the two. Here’s a closer look at these accounts — and why you should consider them for your hard-earned cash.

1. High APYs

The historically high rates on bank accounts we’ve seen over the last few years are on their way out — but that doesn’t mean we shouldn’t stay on the high-APY gravy train for as long as we can. Thankfully, money market accounts offered by online banks pay rates many times higher than the current national average, which is just 0.61%.

With that rate, you’d earn just $61 on a $10,000 balance over a year. But what if you instead picked one of the best money market accounts and earned a rate of 4.00% on your money? After a year, you’d have an extra $408.

Have I piqued your interest? Click here for the best money market accounts we’ve found.

It’s important to note that based on the way interest rates are trending now (namely, downward), it’s unlikely you’ll get that same high APY for another year at this point.

That said, you’re extremely likely to beat the national average rate (which includes big banks that pay a measly 0.01% on savings products) with an MMA at an online bank, even after future Fed rate cuts. These higher APYs are what MMAs have in common with high-yield savings accounts.

2. Easy spending access

MMAs resemble checking accounts in the money access they offer. Many money market accounts come with a linked debit card, meaning you can make purchases directly from the account. Some also offer check-writing privileges (paper checks don’t have the safety features of credit cards or even debit cards, but they’re still handy in some situations).

Either option means one-step access to your cash — you won’t need to transfer it to another account, like you might with an online savings account. Just be careful not to make too many withdrawals. Checking accounts don’t limit your transactions, but MMAs might. One of these accounts likely isn’t a good choice to entirely replace your checking account.

What should you look for in an MMA?

Have I convinced you that money market accounts are worth a closer look? Hooray! Before you open one, make sure you look for these features.

FDIC insurance

This one is paramount. Reputable banks are members of the FDIC, which means your money with these banks is protected for up to $250,000 per depositor, per ownership category. Don’t do business with a bank that lacks this. You can find FDIC documentation on the bank’s website if you’re unsure.

A minimum deposit requirement you can meet

This is less common now, but in the past, some MMAs had minimum opening deposit requirements of several thousand dollars, which is likely out of reach for a lot of potential account holders. You may still have to pony up some dough to open the account, though.

Minimal (or ideally no) fees

The best MMAs keep fees to a minimum. Don’t open one with a bank that charges monthly maintenance fees — why pay money to keep your money in the bank?

A well-rated mobile app

Since the best MMAs are offered by online banks, you’re likely to enjoy an excellent mobile app with features like peer-to-peer money transfers, budgeting tools, free credit score updates, and more. Check reviews of the mobile app for any bank you’re considering to see what other customers think.

All in all, money market accounts can be pretty convenient and lucrative. Keep them in mind if you need a new home for your money — even now that rates have begun to fall.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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