The Federal Reserve will cut the federal funds rate three times in 2024, with a total reduction of 1 percentage point. As a result, interest rates on deposits—including those on money market accounts—have been falling.

It's more important than ever to compare MMA rates and make sure you're earning as much as possible on your balance.

Although money market account rates have increased from historical norms, the national average interest rate for MMAs is only 0.66%, according to the FDIC. The good news: Top high-yield money market accounts offer annual interest rates of more than 5%, more than seven times the national average.

That’s why it’s important to shop around before opening a money market account. Interest rates vary widely, but there are several banks (especially online banks) and credit unions that offer very competitive offers.

Here are some of the highest MMA rates available today:

Check out our picks for the 10 best money market accounts today >>

Additionally, the table below lists some of the best savings and money market account rates currently offered by our verified partners.

Online banking operates exclusively online. This significantly reduces their administrative costs, so they are able to pass these savings on to their customers in the form of high deposit rates and low fees. If you're looking for the best money market account rates, online banking is a great place to start.

That said, online banks aren't the only place to find savings accounts with 4% to 5% APR. Credit unions are not-for-profit financial cooperatives also known for offering competitive interest rates and fewer fees. Many credit unions have certain requirements that must be met to become a member, although some allow almost anyone to join.

Read more: Is online banking really safe?

Money market accounts are a great option for short-term savings goals, such as building an emergency fund or setting aside money for upcoming expenses. They often offer higher interest rates than regular savings accounts, and they make it easier to access your funds than other options like certificates of deposit (CDs).

Money market accounts are also considered low-risk and are standard insured by the FDIC up to $250,000 per depositor per institution. This makes them safer than money market funds, which can be exposed to market risk.

However, keep in mind that many money market accounts require a minimum balance to open an account and earn the highest advertised interest rate. If you fail to maintain this balance, you may incur fees or miss out on the best deals.

Although you can usually access funds as needed, MMA may limit the number of trades you can make each month. This may be a consideration if you need to deposit and withdraw funds frequently.

Read more: Are there penalties for withdrawing funds from a money market account?

When money market accounts make sense:

• You want to earn more interest than a regular savings account, but don't want to lock your money in a CD.

• You can keep a minimum balance to avoid fees.

• You want to have easy access to funds for emergencies or near-term expenses.