Money Market Account Calculator
Enter your starting balance, annual percentage yield (APY), how long you plan to save, and any regular deposits to see your projected balance, total interest earned, and a year-by-year growth schedule. Change the compounding frequency or deposit cadence and results update instantly.
What is a money market account?
A money market account (MMA) is a type of deposit account offered by banks and credit unions that typically pays a higher interest rate than a standard savings account while still providing FDIC insurance (up to $250,000 per depositor per institution) and check-writing or debit-card access. The higher rate comes in part because banks invest the pooled deposits in short-term, low-risk instruments such as Treasury bills, certificates of deposit, and commercial paper. Most MMAs set minimum balance requirements ranging from a few hundred to $10,000 or more to qualify for the advertised APY, and some apply a tiered rate structure where larger balances earn higher rates.
How this calculator works
Enter your starting balance, the annual percentage yield (APY) advertised by the bank, your savings horizon in years, and any recurring contributions you plan to make. The calculator compounds interest at the frequency you choose (daily, monthly, quarterly, semi-annually, or annually) by splitting each year into sub-periods, crediting the proportional share of the annual rate each period, and adding your deposits at the same cadence. The effective APY output shows the true annualised yield after compounding at your chosen frequency, which is useful when comparing accounts that advertise different compounding schedules. The year-by-year schedule breaks the growth down so you can see exactly how much interest accrues each year versus how much comes from your deposits.
Compounding frequency and why it matters
When a bank says your account earns 4.50% APY, that already reflects compounding at whatever schedule the bank uses internally. If you want to model the sub-period mechanics, choose a compounding frequency here. Daily compounding applies interest every day, monthly every month, and so on. The difference in final balance between daily and monthly compounding at 4.50% is usually less than 0.1% over five years, so the stated APY is the more important number to compare across institutions. Effective APY is calculated as (1 + r/n)^n - 1, where r is the annual rate and n is the number of compounding periods per year.
Money market accounts vs. high-yield savings accounts and CDs
Money market accounts, high-yield savings accounts, and certificates of deposit (CDs) all offer FDIC insurance and currently competitive rates, but they differ in flexibility. High-yield savings accounts are essentially identical to MMAs for most savers but may lack check-writing privileges. CDs lock your money for a fixed term (three months to five years) but often pay slightly higher rates in exchange for the commitment. MMAs sit in the middle: they are fully liquid, may offer check-writing and debit access, but usually limit you to six withdrawals per month (a regulation relaxed by the Fed in 2020 but still enforced at many banks). If you might need sudden access to cash, an MMA or high-yield savings account is preferable to a CD. If you are saving toward a specific date and will not need the funds early, a CD may offer a more attractive locked-in rate.
Typical money market account APY ranges (2025-2026)
| Balance tier | Typical APY range | Account type |
|---|---|---|
| Under $1,000 | 0.01% - 1.00% | Basic savings / MMA |
| $1,000 - $9,999 | 0.50% - 3.50% | Standard MMA |
| $10,000 - $49,999 | 3.00% - 4.50% | Competitive MMA |
| $50,000 - $99,999 | 4.00% - 4.75% | High-balance MMA |
| $100,000+ | 4.25% - 5.00%+ | Jumbo MMA / Premium tier |
Rate ranges are approximate and vary by institution, balance tier, and market conditions.
Frequently asked questions
What is the difference between APY and APR on a money market account?
APY (Annual Percentage Yield) includes the effect of compounding, so it reflects how much your balance actually grows over a full year. APR (Annual Percentage Rate) is the simple stated rate before compounding. Most banks advertise APY for deposit accounts because it is the number that best represents your actual earnings. This calculator uses APY as the primary input, and the Effective APY output confirms what you earn after the compounding schedule you chose.
How is compound interest calculated for a money market account?
For monthly compounding, the formula is: Balance = Principal x (1 + APY/12)^(12 x years) + Deposit x ((1 + APY/12)^(12 x years) - 1) / (APY/12). The first term grows your starting balance and the second term sums the compounded value of every periodic deposit. For daily compounding, replace 12 with 365. This calculator handles all frequency combinations and also blends the deposit cadence so you can mix, for example, monthly deposits with quarterly compounding.
Is money in a money market account safe?
Yes, if held at an FDIC-insured bank or NCUA-insured credit union, up to $250,000 per depositor per institution is protected. Money market accounts are not the same as money market funds (which are investment products sold by brokerages and are not FDIC insured, though they are generally very low risk). Always confirm that an account is a deposit account covered by FDIC or NCUA insurance, not a money market fund.
Do money market accounts have minimum balance requirements?
Most do. Common minimums range from $1,000 to $10,000 to open the account or to earn the advertised APY. Some banks charge a monthly fee if the balance falls below a threshold (often $5 to $25). A few online banks offer MMAs with no minimum. The reference table on this page shows typical APY ranges by balance tier to help you compare what is realistic for your starting deposit.
How many withdrawals can I make from a money market account per month?
Historically, federal Regulation D limited savings and money market accounts to six convenient withdrawals per month (such as online transfers or debit purchases). The Federal Reserve suspended this limit in April 2020, but many banks still enforce it as a policy. Exceeding the limit may trigger a fee or cause the bank to convert your account to a checking account. ATM withdrawals and in-person branch withdrawals are typically unlimited and do not count toward the limit.
Can I lose money in a money market account?
At an FDIC- or NCUA-insured institution, you cannot lose principal up to the $250,000 coverage limit. Your interest earnings fluctuate as the bank periodically resets your rate in response to broader interest rate changes, unlike a CD where the rate is locked. If rates fall sharply, your account may earn less than it does today, but the principal is protected.
What happens to my money market account rate when the Federal Reserve changes rates?
Money market account rates are variable and generally track the federal funds rate with a short lag. When the Fed raises rates, banks usually (but not always immediately) pass higher rates to depositors. When the Fed cuts rates, MMA rates tend to fall. This contrasts with a CD, where the rate is fixed for the chosen term. Savers who expect rates to fall sometimes lock in a CD rate, while those who expect rates to rise or need flexibility keep funds in an MMA.