Money Market Calculator
Money market accounts pay higher yields than most savings accounts while staying liquid. This shows what your cash earns at an APY and how it compounds.
What it is: a deposit account (often with limited check-writing) that typically pays a higher yield than standard savings, pegged to short-term rates. APY vs APR: APY already includes the effect of compounding — use it for projections. Rates are variable: money market yields track the Fed funds rate and can fall quickly when rates drop. Liquidity: FDIC-insured (at a bank) and liquid, though some accounts cap withdrawals per month.
FAQ
Is a money market account safe?
At an FDIC-insured bank, money market accounts are insured up to $250,000 per depositor, like other deposit accounts. Money market FUNDS (mutual funds) are different — not FDIC-insured.
How is a money market account different from a savings account?
Money market accounts usually pay a higher yield and may offer check-writing and a debit card, but they can require a higher minimum balance and cap monthly withdrawals.
Why does the APY matter more than the rate?
APY already accounts for compounding, so it's the true annual return. Two accounts with the same stated rate but different compounding frequencies have different APYs — compare APYs.
Figures are editable example defaults for modeling, not quotes or advice. Financial, tax, and medical outcomes vary with your situation — verify with a qualified professional (CFP, CPA, tax advisor, or veterinarian).