What is the average interest rate on a money market account?

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asked Jul 4, 2019 in Other-Finance by Djames55 (340 points)
What is the average interest rate on a money market account?

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answered Jul 4, 2019 by Judy (56,120 points)
The average yearly interest rate on a money market account is between 2.30 % and 2.50% APY.

CD Accounts usually pay a higher interest rate than money market accounts and you don't risk losing your money like you would with a money market account.

With a money market account the money is not FDIC insured so if the bank fails then you lose all your money if you do not take the money out before the bank fails.

Money market accounts usually require a minimum opening deposit of between $500.00 to $2,500.00 and also usually require you to keep a minimum balance in the money market account to keep it open and earning interest.

You're also limited to the amount of withdraws you can do with the money market account as well.

I would go with either a higher yield savings account or a CD bank account to earn the most interest without risk of losing your money in a money market account.

Although most money market accounts are pretty safe as long as you go with a reputable bank that has been in business for a good long time.

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