High-Yield Money Market Accounts

  • FDIC or NCUA insured. No fees. $1 minimum deposit.

  • 24/7 online access to funds.

Select a product and save

High-Yield Money Market Accounts

  • FDIC or NCUA insured. No fees. $1 minimum deposit.

  • 24/7 online access to funds.

Select a product and save

Benefits of High-Yield Money Market Accounts

Flat lay with a calculator, a pen, and cash

A money market account (MMA), also known as a money market deposit account (MMDA), is a type of interest-earning savings account offered by some banks and credit unions. Money market accounts provide many of the conveniences of a typical savings account but with a major added benefit — they often offer higher rates than traditional savings or checking accounts. Some financial institutions set limits on how frequently you can withdraw funds from their money market accounts or high minimum deposit requirements. However, competitive money market accounts opened through Raisin do not currently have any such withdrawal limits and only a $1 minimum deposit . So, a money market account allows you to earn more interest on your savings while still having easy access to your funds when needed.

Tips for Using Money Market Accounts

A women in yellow sweater typing on a laptop

Why settle for average rates when it comes to your savings? A traditional savings account may offer more interest than, say, a checking account. But savers can do much better at extracting value from their cash reserves by opting for a higher-yielding savings product like a money market account.

What can you do with a money market account? Consider money market accounts for holding your emergency fund, savings for a major expense like college tuition, or extra cash you don't need access to on a daily basis. Holding those reserves in a money market account lets you put them to work. Click the button below to read more about how you can use a money market account to up your savings game.

High-Yield Money Market Accounts vs. Traditional Savings Accounts

Money Market Accounts
Highly competitive interest rate, typically well above national average for traditional savings accounts

VS

Traditional Savings Accounts
Interest rate typically above that of a checking account, but well below that of a money market account
Money Market Accounts
Banks may require high minimum deposits and charge fees if you dip below the minimum (Raisin does not)

VS

Traditional Savings Accounts
Minimum deposit is typically low
Money Market Accounts
Banks may place limits on frequency of withdrawals from money market accounts (Raisin does not)

VS

Traditional Savings Accounts
Some banks may place limits on frequency of withdrawals from traditional savings accounts

How to Open a High-Yield Money Market Account

  1. Shop around

    Shop around for competitive money market accounts from different banks and credit unions. Choose one that works best for your needs. Consider accessibility, money market account rates, minimum balance conditions, maintenance fees and other charges, and withdrawal limits, if any.

  2. Get your documents in order

    Banks and credit unions will require basic information about you to confirm your identity and eligibility. Accounts opened through Raisin are through an entirely online process that verifies your identity digitally.

  3. Make an opening deposit

    This is your first step toward earning interest. Rules are different with each institution. Some banks require a deposit to open an MMA, while others let you open the account first and fund it later. With Raisin, all accounts have just a $1 minimum deposit to open. Just remember, the higher your deposit, the higher your earning potential.

High-Yield Money Market Accounts

Are you searching for a secure and intelligent way to grow your savings while maintaining easy access to your funds? High-yield money market accounts might be the solution you need.

These financial instruments offer competitive interest rates, often making them the preferred choice for savvy savers seeking better returns than traditional savings accounts. 

In this comprehensive guide, we’ll demystify high-yield money market accounts for you, outlining their benefits, potential drawbacks, and potential alternatives.

Key takeaways

  • High-yield money market accounts:  A savings account offering higher interest and liquidity with features like no transaction limits, federal deposit insurance, and interest compounding.

  • No transaction limits: Since April 2020, federal regulations have lifted the limit on the number of monthly transactions for money market accounts. While some institutions may charge for transactions above the limits, Raisin does not.

  • Important factors for account selection: Consider interest rates, fees, minimum balance requirements, accessibility, FDIC or NCUA insurance, and the reputation of the financial institution when selecting a money market account.

What is a high-yield money market account?

A high-yield money market account is a type of savings account offering significantly higher interest rates compared to standard savings accounts. These accounts combine the features of a savings account and a checking account. They provide a higher interest rate while maintaining liquidity and allowing you to access your funds when needed.

High-yield money market accounts are typically available through banks and credit unions, making them a secure and federally insured way to save money. High-yield money market rates can be variable or fixed, and they may require a higher minimum deposit to open an account. Money market accounts opened through Raisin have variable interest rates and a $1 minimum deposit to open.

Although high-yield money market accounts share common features with regular savings accounts, they also boast distinct characteristics. 

Understanding these nuances can empower you to make informed decisions to optimize your savings. Here's what you should know:


  1. No transaction limits: As of April 24, 2020, federal regulations no longer restrict money market accounts to six monthly transfers or withdrawals. While some institutions may charge for transactions above the limit, Raisin does not.  

  2. Safety and stability: Money market accounts are recognized as safe, low-risk investments as long as the institutions offering them are insured by the FDIC or NCUA (like all of Raisin’s partner banks and credit unions).

  3. Interest compounding: Most high-yield money market accounts compound interest. This means that you earn interest on your initial deposit and on the interest already earned.

What to look for in a high-yield money market account

Choosing the right high-yield money market account is essential to maximizing your savings and realizing your financial goals. Here are critical factors to weigh before deciding:


  1. Interest rates: Look for accounts with the highest interest rates to maximize your returns. Compare rates across different financial institutions to find the best deal. With Raisin, you can open accounts with institutions across our entire network of banks and credit unions all with one login, making it easier to find the best product for you.

  2. Fees and charges: Be mindful of monthly maintenance fees or transaction charges that may impact your earnings. Some accounts may waive fees if you maintain a certain minimum balance. Accounts opened through Raisin have no fees ever.

  3. Minimum balance requirements: Check the minimum balance required to open and maintain the account. Ensure it aligns with your financial situation and goals. For accounts opened through Raisin, this minimum deposit is just $1, making it easy to get started.

  4. Accessibility:  Check the ease of accessing your funds via online banking and verify any withdrawal restrictions that may exist. With Raisin, funds can be accessed 24/7 online and there are currently no withdrawal limits in place.

  5. FDIC or NCUA insurance: Ensure that the money market account is insured by the FDIC (for banks) or the NCUA (for credit unions) to protect your savings in case of bank failure.

  6. Customer service and reputation: Choose a financial institution with a strong reputation — and even decide based on core attributes of that institution, such as whether it gives back to charity, has a focus on its local communities, or supports initiatives like education financing or community development.

What are the benefits and drawbacks of a money market account?

A high-yield money market account presents various advantages, along with a few considerations to keep in mind. Let's take a look at the pros and cons of this type of account.

Benefits of a money market account

A high-yield money market account provides several attractive benefits, making it an appealing option for savers looking to earn more on their cash while still retaining access. These include:

  1. Higher interest rates: High-yield money market accounts offer more competitive interest rates compared to traditional savings accounts, helping your savings grow faster. 

  2. Liquidity: You can access your funds easily and frequently through various channels, helping you gain financial flexibility.

  3. Security: Money market accounts are a safe option, backed by FDIC or NCUA insurance, which protects your funds up to the insured limit.

  4. Low risk: Money market accounts are low-risk, making them ideal for conservative investors prioritizing capital preservation over higher returns.

Drawbacks of a money market account

Despite the many benefits of high-yield money market accounts, they may not be right for everyone. Here are some considerations to keep in mind:

  1. Minimum balance requirements: Some money market accounts have high minimum balance requirements, which might limit access for those with lower savings. No money market accounts opened through Raisin are subject to minimum balance requirements.

  2. Fluctuating interest rates: High-yield money market rates are generally higher than regular savings accounts but can still fluctuate, potentially impacting your returns.

  3. Opportunity cost: The returns from a money market account may not match inflation rates, possibly leading to missed growth opportunities in the long term.

What are the alternatives to money market accounts?

If high-yield money market accounts don't align with your financial goals or risk tolerance, you can choose from other alternatives. These include:


  1. High-yield savings accounts: Similar to money market accounts, these accounts offer competitive interest rates while providing easy access to your funds. They often have lower minimum balance requirements.

  2. Certificates of deposit (CDs): CDs offer fixed interest rates for a specific term, making them a suitable option for those with longer saving goals and lower liquidity needs. 

  3. Investment accounts: For longer-term financial goals, consider investing in stocks, bonds, or mutual funds. These come with higher risks but can potentially offer higher returns.

Discover high-yield money market accounts with Raisin

Finding the right avenue to grow your savings is an integral part of managing your financial health. High-yield money market accounts offer a unique blend of attractive interest rates, safety, and flexibility, making them a compelling choice. 

With Raisin's user-friendly platform, you gain access to an exclusive selection of deposit products, including high-yield money market accounts. It's designed to help you navigate your financial journey, allowing you to build a personalized savings strategy that suits your specific needs.

You can also monitor and control your financial well-being effortlessly with just one monthly statement showing all your balances and earned interest. 

Don't miss out on better returns. Register today to unlock the power of high-yield money market accounts.

Frequently asked questions about high-yield money market accounts

How do high-yield money market accounts differ from regular savings accounts?

A high-yield money market account is a type of savings account that offers significantly higher interest rates compared to traditional savings accounts. While both accounts provide a safe place to store your money, a high-yield money market account typically offers better returns due to its higher interest rates and potential for interest compounding. Unlike a regular savings account, money market accounts often come with limited check-writing abilities and a higher minimum deposit requirement.

Are high-yield money market accounts safe and insured?

Yes, high-yield money market accounts are generally considered safe and secure, as long as the bank or credit union offering them is insured by the FDIC or NCUA, respectively. This means that if the financial institution fails, your deposits in the money market account are protected up to the maximum insured limit, which is currently $250,000 per depositor, per institution. All of Raisin’s partner banks and credit unions are federally insured.

Can I access my funds easily with a high-yield money market account?

Yes, one of the advantages of a high-yield money market account is its liquidity. With Raisin, there are no transaction limits and transfers to your external linked account typically take 1-3 business days. 

What factors should I consider when choosing a high-yield money market account?

As mentioned, when selecting a high yield money market account, consider the following factors:


  1. Interest Rates

  2. Fees and Charges

  3. Minimum Balance Requirements

  4. FDIC or NCUA Insurance

  5. Accessibility

  6. Customer Service and Reputation

What Is Raisin?

Family spending time out door

Raisin brings together high-yielding savings products offered by a network of U.S. financial institutions. It’s your destination to discover competitive savings products and start saving wisely. Select and fund multiple savings products from different institutions and manage them all from one account.

Safety

Safety

Funds deposited into any of the savings products available through Raisin are always held by a federally insured financial institution. A very easy and safe way to diversify your deposit portfolio. We use a host of cybersecurity measures to protect your funds and sensitive information.

Choice

Choice

Savings products from our network of financial institutions offer flexible terms and some of the most competitive interest rates. You can easily find the right product or mix of products for you.

Convenience

Convenience

One account to hold all your deposit products. Simplified statements. Easy access to manage your funds – all through a streamlined digital platform.

How Raisin Protects Your Money and Personal Information

Federal Deposit Insurance Corporation

FDIC logo

All participating banks are members of the FDIC. Deposits in participating banks are insured by the FDIC up to the limits of federal law. The standard insurance amount is $250,000 per depositor, per insured bank, for each deposit account ownership category.

Click to learn more about FDIC insurance

National Credit Union Administration

NCUA logo

All participating credit unions are insured by the NCUA through its Share Insurance Fund. Deposits in participating credit unions are insured by the NCUA up to the limits of federal law. The standard insurance amount is $250,000 per depositor, per insured credit union, for each deposit account ownership category.

Click to learn more about NCUA insurance

Cybersecurity is a top priority at Raisin

SOC2 logo

We invest in a variety of technologies to protect our customer’s data, privacy and transactions. These include multi-factor authentication, encryption, and web application firewall advanced internet protection technologies. We are a SOC 2 certified organization, which means we have met the requirements outlined by the American Institute of Certified Public Accountants (AICPA) to ensure that we have the controls in place to keep customers' data secure and private.

Click to learn more about SOC 2 certification

Open an Account in 3-5 Minutes

Select a product

Select

the right product for your savings goals.

Register for a Raisin account

Register

with an email address and password, then verify your identity and bank information.

Add funds

Fund

the savings products you add to your new Raisin account.

How Raisin Compares

With Raisin
One secure account guards your personal data and safely allows you to tap into yields from multiple savings products

VS

With traditional banking
Multiple signups, savings accounts, and products at different institutions each require you to provide sensitive personal information.
With Raisin
The platform brings together diverse and competitive federally insured savings products, including CDs with a range of terms, that increase your earnings potential.

VS

With traditional banking
There are fewer product options, possibly limiting your savings potential.
With Raisin
Only one account is required. You manage all your chosen savings products through the Raisin platform.

VS

With traditional banking
By opening new accounts at multiple institutions, you get more statements, must remember more passwords, and waste time.

FAQs

Secure Messaging Center

Email: support.us@raisin.com

Call: 844-994-EARN (3276) (Monday to Friday from 9:00 a.m. - 4:00 p.m. ET)

The Raisin name and logo are trademarks of Raisin GmbH. All other trademarks, logos, marks, and brand names are the property of their respective owners — used with permission.

© 2024 Raisin GmbH. All rights reserved.

*APY means Annual Percentage Yield. APY is accurate as of {todayDate}. Interest rate and APY may change after initial deposit. Minimum opening deposit is $1.00.

Customer funds are held in various custodial deposit accounts. Each customer authorizes the Custodian Bank to hold the customer’s funds in such accounts, in a custodial capacity, in order to effectuate the customer’s deposits to and withdrawals from the various bank and credit union products that the customer requests through Raisin.com. The Custodian Bank does not establish the terms of the bank or credit union products and provides no advice to customers about bank or credit union products offered through Raisin.com. Central Bank of Kansas City, Member FDIC, d.b.a. Central Payments is the Service Bank. Lewis & Clark Bank is the Custodian Bank.