Best money market account rates today, December 16, 2025 (Earn up to 4.26% APY)

Core Insights - Money market accounts (MMAs) offer higher interest rates compared to traditional savings accounts, providing liquidity and flexibility for long-term savings [1][3] - The national average interest rate for MMAs is currently 0.58%, while the best rates exceed 4% APY, with some accounts offering rates above 5% APY [3][7][13] - Historical fluctuations in MMA rates are closely tied to changes in the Federal Reserve's target interest rate, with significant drops during economic crises and subsequent recoveries leading to higher yields [4][5][6][7] Interest Rate Trends - Following the 2008 financial crisis, MMA rates fell to between 0.10% and 0.50% due to the Fed's near-zero federal funds rate [5] - The COVID-19 pandemic prompted another reduction in rates, but aggressive interest rate hikes began in 2022 to combat inflation, resulting in historically high MMA rates by late 2023 [6][7] - As of late 2024, MMA rates have started to decline following recent Fed rate cuts, although they remain high compared to historical standards [8] Choosing a Money Market Account - When selecting an MMA, factors beyond interest rates, such as minimum balance requirements, fees, and withdrawal limits, are crucial for maximizing account value [9][10] - Some MMAs require a minimum balance of $5,000 or more to earn the highest rates, while others may charge monthly fees that can reduce interest earnings [10][16] - It is essential to ensure that the chosen account is insured by the FDIC or NCUA, which protects deposits up to $250,000 per institution [11]