Money Market Calculator
Calculate returns on money market accounts, understand tiered interest rates, and compare different MMA offerings to maximize your savings.
Money Market Account Calculator
Account Growth
Final Balance
$16,584.71
Total Interest
$584.71
Total Deposited
$16,000.00
| Month | Balance | Monthly Interest | Total Interest |
|---|---|---|---|
| 1 | $10,537.50 | +$37.50 | $37.50 |
| 3 | $11,618.55 | +$41.54 | $118.55 |
| 5 | $12,707.73 | +$45.61 | $207.73 |
| 7 | $13,805.09 | +$49.71 | $305.09 |
| 9 | $14,910.70 | +$53.84 | $410.70 |
| 11 | $16,024.62 | +$58.00 | $524.62 |
| 12 | $16,584.71 | +$60.09 | $584.71 |
Understanding Money Market Accounts
What is a Money Market Account?
A money market account (MMA) is a type of savings account that typically offers higher interest rates than regular savings accounts while providing limited check-writing and debit card privileges.
- • FDIC insured up to $250,000 per depositor
- • Higher yields than traditional savings accounts
- • Limited transaction capabilities (typically 6/month)
- • May require higher minimum balances
- • Interest rates may be tiered based on balance
MMA vs. Savings Account
Money market accounts often offer higher APY rates than regular savings accounts, but may require higher minimum balances. They also typically offer check-writing privileges and debit cards, which savings accounts don't.
Key Differences
- • Higher interest rates (typically 0.5-1% more)
- • Higher minimum balance requirements
- • Check-writing capabilities
- • Debit card access
Tiered Interest Rates
How Tiered Rates Work
Many money market accounts use tiered interest rates, where higher account balances earn higher APY rates. This incentivizes customers to keep more money in their accounts.
For example, you might earn 0.5% APY on balances under $10,000, but 4.5% APY on balances over $100,000. Understanding these tiers can help you maximize your returns.
Maximizing Tiered Returns
- • Consolidate savings to reach higher tiers
- • Track balance thresholds for rate changes
- • Consider timing of large withdrawals
- • Compare tier structures across institutions
- • Factor in minimum balance requirements
Fees to Watch For
Monthly Maintenance Fees
Some MMAs charge monthly fees ($5-$15) if you don't maintain a minimum balance. Always check the fee waiver requirements.
Excess Transaction Fees
Federal Regulation D limits certain withdrawals to 6 per month. Exceeding this may incur fees or account conversion.
Minimum Balance Fees
Falling below the required minimum balance may result in reduced interest rates or additional monthly charges.
When to Use a Money Market Account
Best For
- • Emergency funds with occasional access needs
- • Short-term savings goals (1-3 years)
- • Funds you might need quick access to
- • Larger savings balances ($10,000+)
- • People who want debit card access to savings
Consider Alternatives If
- • You have a small balance (CDs may offer better rates)
- • You won't need the money for 1+ years (CDs)
- • You need unlimited transactions (checking account)
- • You want maximum returns (I-bonds, T-bills)