Earn Up To 5.50% Interest with High-yield Money Market Accounts! A Complete Account Opening Guide

Why choose average traction accounts with a paltry 3 to 3.5% APY? US banks now offer high-yield money market accounts. You can get up to 5.5% APY from these accounts.

Quontic Bank itself offers 5.00% APY. And that is almost 8 times more than the average yield of money market accounts- 0.61% APY.

So, choose the high-yield money market accounts only. But check your eligibility first.

The money market accounts offer check-writing and debit card withdrawal facilities. However, savings accounts and high-yield savings accounts have no such features.

At Financeteam, we tracked down the everyday rates of the high-yield money market accounts to identify the best offers for you. We will also discuss a thing or two about the partner banks concerned.

Best rates of high-yield money market accounts

The best money market accounts are the high-yield accounts. We will measure the best accounts in terms of their annual returns. Hence, the following list records the best ten offers regarding their percentage APY offerings.

In many cases, multiple banks offered the same interest rates. In that case, we have considered their minimum balance and initial account opening requirements:

• Quontic Bank- 5.00% APY
• VIO bank- 5.05% APY
• ZYNLO Bank- 5.00% APY
• First Foundation Bank- 4.90% APY
• BRILLIANT Bank- 4.85% APY
• MYSB Bank- 4.80% APY
• INDIANA MERCHANTS BANK- 4.75% APY
• Northern Direct Bank- 4.75% APY
• Republic Bank of Chicago- 4.71% APY
• Prime Alliance Bank- 4.5% APY

High-yield money market vs. High yield savings accounts

Here is something we need to understand. The best high-yield savings accounts might offer higher interest rates. Currently, the highest rate in the US is 5.5% APY. In comparison, the highest money market account rate from banks is up to 5.20% APY.

However, the interest rate growth trends show an interesting statistic.

Firstly, we have to observe the increasing trend.

Till last month, the highest rates offered by high-yield money market accounts were comparatively higher. In comparison, the top savings accounts offered the same rate (5.50%).

However, we have observed a slight slump in money market account rates now.

The Federal Reserve has declared a reduction in federal interest rates around the US. As a direct outcome, the money market accounts have somewhat slashed their APYs.

So why will you choose the high-yield money market accounts?

Well, there are two reasons for that. Firstly, Money market account rates do not fall abruptly, in quick successions. It will only change when something like the federal interest rates have changed. And we know that can happen once or twice in only 5 to 10 years.

Secondly, the high-yield money market accounts offer more features and benefits than savings accounts.

You can enjoy check writing facilities and debit card withdrawal facilities. Even the highest-paying, high-yield savings account will not offer you these Money market account benefits. 

Features of the Best money market accounts

One thing is clear. You must choose the first 20 to 25 high-yield money market accounts for the most significant gains. The high-yielding accounts offered by banks might earn you up to 5.20% APY. Similarly, credit unions offering high-yield money market accounts may offer up to 5.5 or 5.6% APY. But these are the highest Money market account interest rates you rarely get.

So, let’s check out the offers from the best high-yield money market accounts and their other beneficial features:

Quontic Bank

The high-yield money market accounts offered by Quontic Bank are our top contenders. Here, you will get up to 5.00% APY. But that’s not all.

You can open an account with only $100 here. Moreover, you don’t need to maintain any ongoing balance in this Bank. Quontic Bank also charges no monthly fees. Sadly, no ATM card offers are available with the bank. However, you can enjoy all the benefits of debit card withdrawal.

A maximum of 6 monthly withdrawals are allowed here. After that, you have to pay $10 for every transaction. But why pay extra when you can use check writing facilities? You can write checks if you need to make more than six transactions.

Lastly, Quontic Bank has been an FDIC member for the last 20-odd years.

Vio Bank

It is one of the best banks offering the highest rates among high-yield money market accounts. Now enjoy up to 5.05% APY with Vio Bank. You can also maintain an account with the bank at a $0.01 minimum balance.

Reviewers like Nerd Wallet and Investopedia rate Vio Bank’s high-yield money market accounts five out of five.

ZYNLO Bank

It is one of the lesser-known banks in the US. But ZYNLO offers the best rate in the industry regarding high-yield money market accounts.

You can enjoy up to 5.00% APY with the bank. They offer no bonus but allow you to operate an account with $0.01. The best review websites give them 4.5 out of 5 stars.

First Foundation Bank

This bank is also reputed for offering a very credible high-yield money market account. The static interest rate at the bank is 4.90% APY. The minimum balance to operate an account here remains the same.

Are the high-yield money market accounts insured?

When you have a higher APY from your traction account, the security question will naturally hit your mind. The same happens in the case of high-yield money market accounts.

Similarly, you should know that all deposit accounts of banks and credit unions are insured. The Federal Reserve offers direct FDIC protection to these accounts individually.

Some readers question- whether online banks also have FDIC insurance. Let me clarify- all traditional or online banks enjoy FDIC insurance.

The insurance body is a federal deposit Insurance corporation. The corporation insures up to $250000 for every account.

The National Credit Union administration insures the Credit union accounts. They also enjoy insurance for up to the same value. So don’t worry if your bank or credit union fails and closes down. You will not lose your money. Meanwhile, you will get your total return along with interest, if it does not cross the limit of $250000. However, the accounts held by money market mutual funds do not have any federal insurance.

 Read More: if you want to know how FDIC protects your money, read my other blogs.

Pros and Cons of High-yield money market accounts

Pros and Cons

The high-yield money market accounts have many benefits. If you open an account today, it will secure your future for a sustainable period. However, experts say you must be careful about some risks and limitations of these accounts.

Pros

The best thing is that your balance helps you earn interest without breaking a sweat. At the same time, you can withdraw or deposit your money at any time you like.

The account is also risk-free and safe. In addition, you can enjoy a greater APY if the federal rates increase.

Cons

If you want a higher APY, you may have to open another account with another bank. Your existing account might not help you earn the best offer. Moreover, the high-yield money market accounts offer easy access to your money. Hence, you may be tempted to spend it irrationally. In addition, your APY could be lower if the rates drop.

Expert advice: The Federal Reserve may reduce or increase rates. There is no way you can know that in advance. But we have already seen one-way production this year. I don’t feel there will be more rate cuts this year or the year ahead.

However, the recent rate reduction can affect the high-yield money market accounts. 1 or 2 points can reduce the existing APY rates.

Start earning with high-yield money market accounts

You can earn interest from the high-yield money market accounts. And that is also the highest in the industry. No other traction accounts are offering such benefits.

The best high-yield money market accounts offer at least 10 times more than the traditional average APY offered by money market accounts in the US.

If you invest $1000 in a money market account with 5% APY, you can earn around 120.8 in 1 year.

Steps to open your high-yield money market accounts

An account opening is no big deal here. Just follow these steps:

• Enter the bank website and click on open account
• Provide your personal information
• Upload the documents necessary
• Enter funds through A C H transfer
• Register your online banking

Alternatives you may consider

It is difficult to match the rates offered by high-yield money market accounts. But you can still choose alternatives if you consider these accounts risky. The best alternative will be certificates of deposit and high-yield savings accounts. Meanwhile, you can also invest in US savings bonds and US treasury bonds.

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