A money market account (MMA) is a type of deposit account that offers features of both savings and checking accounts. They allow you to earn competitive interest rates on your balance, while easily accessing those funds via a debit card and/or checks.

Like other deposit accounts, most money market accounts are federally insured up to $250,000 per depositor, per institution, and per ownership category. This insurance protects your account balance if your bank or credit union fails.

If you’re thinking about opening a money market account, it’s important to shop around and compare interest rates so you know you’re getting the most out of your savings. But what is a good money market rate? Interest rates vary widely, but it can help to know the average money market rate today, which can serve as a benchmark for comparing accounts.

Average money market account rates

Money market accounts pay variable interest rates, meaning they can go up or down at any time. Typically, when the Federal Reserve increases its target rate, MMA rates also go up, and vice versa.

Here’s a look at how average money market rates have changed over the past year:

And zooming out, here’s how money market account rates have changed since 2010:

As of the time of writing, the national average rate for a money market account is 0.64%. Though this is fairly high by historical standards, it still isn’t much.

The good news is that many banks and credit unions offer MMA rates that are much higher than the national average. In fact, the best money market accounts are paying as much as 5% APY or more.

Doing some research to find the best rates available can make a significant difference in your savings balance over time.

See our picks for the 10 best money market accounts today>>

How to get the best money market account rate

Money market account rates fluctuate, but there are steps you can take to ensure that you get the best possible rate:

• Shop around: Take time to compare MMA rates from different banks and credit unions, since interest rates vary quite a bit between financial institutions. Online banks, in particular, are known for offering the most competitive rates.

• Check with your current bank: Some financial institutions offer higher rates to existing customers, known as relationship rates. As you’re shopping around, be sure to check with your existing bank to see if you qualify for a relationship interest rate.

• Make a larger opening deposit: Many money market accounts are tiered, where higher rates are offered on higher balances. Making a larger opening deposit and maintaining a higher minimum balance could help you earn a better rate.

• Watch out for fees: Many bank accounts, including money market accounts, come with certain fees. For example, you may be charged a monthly maintenance fee, or a fee if your balance drops below a certain threshold. These fees can cancel out interest earnings, so it’s important to choose an account that charges few fees or offers ways to get fees waived.