Here's how much interest a $1,000 money market account will earn savers now
Have $1,000 that you want to deposit into a money market account? Here's how much interest you can earn if you do.
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If you've been able to save up a small amount of money such as $1,000, it may not feel like a major milestone. But in the economic terrain millions of savers have encountered in recent years, it can still be considered an accomplishment. And that's especially true if you've done so while keeping your debt under control. Now, however, with inflation surging again, the potential for a Federal Reserve interest rate hike growing and pronounced market uncertainty , where you keep that $1,000 is arguably more important than usual. Getting it out of a traditional savings account, with a minimal interest rate of just 0.38% , is also paramount now.
One account type worth serious consideration is a money market account . Thanks to today's elevated rate climate, rates on this account type sit close to 4% right now. Those rates are variable , however, and well-positioned to increase should a Fed rate hike become a reality. At the same time, savers won't have to worry about access here as they would with a certificate of deposit (CD) account , which requires savers to lock their funds away to earn a high rate. Money market accounts also come with check-writing features, allowing you to streamline your banking needs with a single account, if you wish.
Still, for most savers, the interest-earning capacity a money market account offers now is the main benefit. So, how much interest can a $1,000 money market account actually earn savers now? That's what we'll break down below.
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