Money market accounts (MMAs) are a good option for savers in search of higher interest rates than those provided by savings accounts from traditional banks, along with added flexibility. MMA rates have edged up over the past week, as reported by Bankrate, in response to the Federal Reserve’s ongoing efforts to fight inflation by raising short-term rates.

Money market account rates

The national average for money market accounts at all deposit levels is 0.48% APY, as of March 29, the same as one week ago. It’s up very slightly from 0.47% one month prior.

The highest rate available today is 4.65%, though you may be able to find a higher rate by shopping around.

Let’s say you invested $10,000 into a money market account with an interest rate of 4.65% (today’s high) that compounds daily. After a year, you would have earned about $475 in interest, assuming you make no withdrawals or additional contributions.

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