Interest CalculatorsFormulas shown, rates sourced

Tiered APYs · fees · minimum balance

Money market calculator

A money market account is an insured bank deposit that often pays more on bigger balances and may charge a fee below a minimum. $30,000 in an account paying 3.50% APY from $25,000 grows to $33,261.54 in 3 years; the national average money market rate is 0.63%.

Interest Calculators editorial teamUpdated 6 sources

Calculator 16

Money market account

Up to three balance tiers; interest compounds monthly at each tier's APY

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$

Rate tiers

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Fees

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After 3 years the account holds $33,261.54: $3,261.54 of interest.

Ending balance$33,261.54
Interest earned$3,261.54
Fees paid$0.00none
Effective APY on your opening balance3.500%after tiers
Year-by-year table
YearInterestFeesBalance
1$1,050.00$0.00$31,050.00
2$1,086.75$0.00$32,136.75
3$1,124.79$0.00$33,261.54

Formula. Each month: interest = balance × [(1 + APY)1/12 − 1] at the tier rate (whole-balance) or at each slice's rate (blended); then the fee is charged if the balance is below the waiver amount, then the deposit is added.

Money market account vs money market fund

A money market account (MMDA) is a bank or credit union deposit, which Regulation D classes as a savings deposit; a money market fund is a mutual fund.[2][3] The names are similar, the protections are not:[5]

Money market accountMoney market fund
What it isAn interest-bearing deposit accountA mutual fund holding short-term debt
InsuranceFDIC or NCUA, up to $250,000 per depositor, per institution, per ownership categoryNot insured; can lose value
Return quoted asAPYA yield, usually over the last 7 days
Where you open itBank or credit unionBrokerage or fund company

This calculator models money market accounts. For a fund, enter its 7-day yield as a single flat rate with no tiers; the fund's expenses are already taken out of that yield. Since 2023 SEC rules have required some institutional money market funds to charge liquidity fees when redemptions are heavy.[4]

How tiered money market rates work

Tiered rates pay more as the balance crosses set amounts. Banks use one of two methods, and they produce different results on the same balance:

$30,000 for 3 yearsEnding balanceInterestEffective APY
Whole balance earns the tier rate$33,261.54$3,261.543.500%
Each slice earns its own tier rate$32,107.18$2,107.182.249%

With whole-balance tiers, all $30,000 earns 3.50%; with blended tiers only the part above $25,000 does. The account agreement says which applies.

Fees and minimum balances

A monthly fee can wipe out the interest on a small balance. With $2,000 in the example account, below the $2,500 waiver, $432.00 of fees over 3 years outweigh $109.69 of interest. Keep the balance above the waiver amount, or compare a no-fee high-yield savings account.

Money market rates today

The FDIC's national average rate for money market deposit accounts was 0.63% APY, with a national rate cap of 4.63% (published October 19, 2026); the savings average was 0.38%.[1] Competitive accounts pay well above the average.

Money market vs savings account

The two are close cousins: both are insured deposits with variable rates. Money market accounts more often come with checks or a debit card and with tiered rates and minimums. Both were once limited to six convenient withdrawals a month, a limit the Federal Reserve deleted from Regulation D in April 2020, although a bank may keep its own.[6] For a single-rate account with deposits, the savings calculator is simpler.

Insurance limitsDeposits are insured up to $250,000 per depositor, per insured bank, per ownership category.[5] Money market funds are investments, not deposits.

To lock a rate instead, see the CD calculator; for Treasury bills, which many money market funds hold, the T-bill calculator.

Frequently asked questions

How is interest calculated on a money market account?

Like a savings account: the bank applies a daily or monthly rate to your balance and adds the interest, with the yearly result stated as an APY. With tiers, the rate depends on your balance.

Is a money market account FDIC insured?

Yes, a money market deposit account at an FDIC-insured bank is insured up to the limits. A money market fund is not.

What is the average money market rate?

0.63% APY according to the FDIC's national rates published October 19, 2026.

Money market account or high-yield savings?

Compare the APY on your balance after tiers and fees. Pick a money market account if you want check-writing; otherwise the higher net APY wins.

Sources

  1. National Rates and Rate Caps, October 2026 · Federal Deposit Insurance Corporation, published October 19, 2026
  2. 12 CFR 204.2, Definitions (Regulation D): time deposit and savings deposit · eCFR, Federal Reserve regulations, current as of November 1, 2026
  3. Money Market Funds · U.S. Securities and Exchange Commission, Investor.gov, accessed November 13, 2026
  4. SEC Adopts Money Market Fund Reforms (Press Release 2023-129) · U.S. Securities and Exchange Commission, July 12, 2023
  5. Understanding Deposit Insurance · Federal Deposit Insurance Corporation, updated April 1, 2024
  6. Federal Reserve Board announces interim final rule to delete the six-per-month limit on convenient transfers from the "savings deposit" definition in Regulation D · Board of Governors of the Federal Reserve System, April 24, 2020