Calculate how your money market account balance grows over time. Enter your initial deposit, monthly contribution, interest rate (APY), and time period to see your total savings, total contributions, and total interest earned. Also try the High-Yield Savings Calculator.
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A money market account (MMA) is a type of deposit account offered by banks and credit unions that typically pays higher interest than a standard savings account. It combines features of savings and checking accounts, often including check-writing privileges and debit card access, while keeping your funds FDIC-insured up to $250,000. See also our calculate How Long to Double Money.
APY (Annual Percentage Yield) reflects the actual return you earn in a year, factoring in the effect of compounding interest. APR (Annual Percentage Rate) is the simple interest rate without compounding. Because money market accounts compound interest, APY gives you a more accurate picture of your true earnings — which is why this calculator uses APY.
More frequent compounding means interest is calculated and added to your balance more often, which allows your earnings to generate additional earnings sooner. Daily compounding will yield slightly more than monthly or quarterly compounding at the same APY, though the difference is often modest for shorter time periods.
Money market accounts typically offer higher interest rates than traditional savings accounts while still keeping your money liquid and FDIC-insured. They often come with check-writing and debit card access. The trade-off is that they may require higher minimum balances and can carry monthly fees if balance requirements aren't met. You might also find our calculate HSA useful.
Money market accounts are a good fit for savers who want a safe place to grow short-term savings, maintain an emergency fund, or park cash while earning more than a standard savings account. They're ideal if you want flexibility to access your funds without locking money into a CD.
No. A money market account is a bank deposit product that is FDIC-insured and carries virtually no risk of losing principal. A money market fund is a mutual fund offered by investment firms that invests in short-term debt securities. While money market funds are generally low-risk, they are not FDIC-insured and can, in rare cases, lose value.
The most effective ways are to maximize your monthly contributions, choose an account with the highest available APY, reinvest all interest earned, and start as early as possible to benefit from compounding over time. Even modest increases to your monthly contribution can significantly grow your final balance over a multi-year horizon.
High-yield money market accounts at online banks and credit unions have offered APYs ranging from roughly 4% to 5.5% in recent high-rate environments, though rates vary widely and change with the Federal Reserve's benchmark rate. Traditional brick-and-mortar banks often offer lower rates, sometimes well below 1%. Always compare current rates before opening an account.