With interest rates as low as they are, you might be looking for any way to earn a little bit more on your savings. One option is to open a money market account. You won’t have as free access to funds as you would with a standard savings account — just a handful of withdrawals per month are allowed — but the interest rate is generally higher (although still low compared with other investment options). Think of it as a mix of flexibility and growth.
Here’s a roundup of the best money market accounts:
Best interest rate
ableBanking, 1.00% APY
At this writing, the national average APY for money market accounts was 0.08%. It’s not too hard to beat that rate, but few banks offer yields as high as ableBanking, a division of Northeast Bank in Maine.
The ableBanking money market account has a minimum opening deposit of $250, but after that you need to keep only a single penny in there to maintain it. You get up to six withdrawals per month, and there’s no monthly account fee.
Best for high balances
BBVA Compass ClearChoice, 1.10% APY
It is perhaps no surprise that keeping more money in an account can earn you more in interest. BBVA Compass offers a 1.10% APY for balances from $10,000 to $5 million in its ClearChoice money market account. Although you need only $25 to open the account, you’ll have to keep a balance of at least $10,000 or set up recurring monthly transfer of $25 from a BBVA Compass checking account in order to avoid a $15 monthly service charge.
If you have a large chunk of money to set aside and want to earn the best possible return but don’t want to lock it away in a certificate of deposit or give up the security of FDIC insurance, this BBVA Compass money market account might be an option.
Easiest to access your money
Bank of Internet Money Market
Because of federal limits on “convenience” withdrawals from a money market savings account, it’s unlikely you could get by without also having a checking account. But Bank of Internet USA’s offering comes pretty darn close to providing that simplicity.
This account comes with the ability to write checks (the bank provides the first set for free if you order them when the account is opened), a debit card and online bill-payment services. There are a few unusual perks too, such as providing postage-paid envelopes for deposits by mail. Bank of Internet also offers an array of online and mobile banking tools, including check deposits and fund transfers.
If you want a savings account with many of the same features as a checking account, Bank of Internet’s money market account may be a good choice.
Ally Money Market
Ally Bank offers a debit card with its money market accounts, and there’s no limit on the number of ATM withdrawals. This feature alone puts Ally out in front of most competitors. Because federal regulations limit most withdrawals (via check, online transfer or debit card purchase) to six per month, having the convenience of unlimited ATM access is a boon.
The interest rate isn’t too shabby, either. At an APY of 0.85%, it’s roughly 10 times the national average.
ATM withdrawals are free at over 43,000 Allpoint ATMs, and Ally will reimburse up to $10 per statement cycle for fees incurred at out-of-network cash machines.
Best introductory rate
EverBank, 1.11% APY
EverBank, based in Jacksonville, Florida, offers an introductory APY of 1.11% for the first year on its Yield Pledge money market account. After 12 months, the yield drops to the bank’s standard APY, currently 0.61%. The introductory rate is for balances up to $150,000.
You’ll need $1,500 to open a money market account. For customers with balances above $5,000, Everbank will cover 100% of the fees charged by out-of-network ATMs in the U.S.
Lowest minimum deposit
Ally
You can’t beat zero, and that’s what Ally requires to open a money market account. The account earns a 0.85% APY, one of the highest yields around. And Ally charges no monthly maintenance fees, has unlimited deposits and ATM withdrawals, and provides a debit card for up to six additional transactions each statement period.Best accounts at brick-and-mortar banks
PNC Bank Premiere Money Market
If you live in the Midwest and prefer banking at a traditional institution, PNC Bank offers a good product. You can open a Premiere money market account online or in any of its more than 2,600 branches for as little as $100.
The APY you earn depends on your balance and whether you have a checking account with the bank. If you have a Performance Select checking account, for example, your money market account could earn as much as 0.8% APY. Even though you can open an account with a small initial deposit, you’ll need a $5,000 average balance to avoid a $12 monthly service charge.
Santander Money Market Savings
Santander Bank has more than 650 branches across the country, and its money market savings account begins with a 0.30% APY. But as with many bricks-and-mortar institutions, it takes a high minimum balance to get the most from the account. You need only $25 to open, but the balance will need to be at least $10,000 in order to avoid a $10 monthly fee and to get a rate as high as 0.9%. (You can also avoid the monthly fee by having a Santander checking account.)
Santander is especially good for those who like to bank on the go. Its Apple and Android mobile apps receive consistently high reviews.
BBVA Compass Money Market
BBVA Compass’ money market account earns an attractive 1.10% APY for balances from $10,000 to $5 million. (You don’t need that much to open it — just $25.) You can apply online, by phone or in person at one of nearly 700 branches, many in the Sunbelt region.If you have a lot to deposit and prefer to bank at traditional branches, BBVA Compass may be for you.
Bank of America Rewards Money Market Savings
This Bank of America account can be opened for as little as $25, and the initial APYs are pretty small, at around 0.03%. But if you have other accounts with BofA, you can take advantage of its relationship booster to earn a slightly higher yield. You’ll also be able to bank at one of its nearly 5,000 locations nationwide.
Margarette Burnette is a staff writer at NerdWallet, a personal finance website. Email: mburnette@nerdwallet.com. Twitter: @margarette. Virginia C. McGuire of NerdWallet contributed to this story.
This post has been updated.
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METHODOLOGY
To determine the best accounts, we took a close look at more than 50 financial institutions: the largest U.S. banks based on assets, debit card volume and Internet search traffic, the nation’s largest credit unions with broad-based membership requirements, and other notable and/or emerging players in the industry.
Financial institutions surveyed included ableBanking, Alliant Credit Union, Ally Bank, American Express, AmTrust Direct, Associated Bank, Bank5 Connect, Bank of America, Bank of Internet, Barclays, BB&T, BBVA Compass, Boeing Employees Credit Union, BMO Harris, Capital One, Charles Schwab Bank, Chase, CIT, Citibank, Citizens Bank, Comerica Bank, Connexus Credit Union, Discover, Everbank, Fidelity, Fifth Third Bank, First Convenience Bank, GO Bank, HSBC Bank USA, Huntington Bank, KeyBank, MetaBank, Moven, M&T Bank, MUFG Union Bank, MyCBB, Navy Federal Credit Union, Pentagon Federal Credit Union, PNC, Regions Bank, Santander, Security Service Federal Credit Union, Simple, State Employees’ Credit Union of North Carolina, SunTrust, Synchrony Bank, TD Bank, Union Bank, USAA, U.S. Bank and Wells Fargo.
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