Nov 17, 2024, 11:00 AM
The Impact of Federal Reserve's Rate Hikes and Cuts on Money Market Account Rates
From March 2022 to July 2023, the Fed raised its benchmark rate 11 times, causing MMA rates to rise. But in September and November, it slashed the rate, leading to falling deposit rates. The national average MMA rate is 0.64% (up from 0.23% two years ago). High-yield accounts offer up to 5% APY. Interest depends on APY and deposit amount. For example, $1000 at 0.64% grows to $1006.42, while $10000 at 5% APY grows to $10512.67.