Money Market Calculator

Calculate money market account returns vs savings account.

By Konstantin Iakovlev · Updated September 2026 · Source: FDIC, National Rates and Rate Caps

$
%

Interest Earned

$1,493.76

Total Value

$11,493.76

Comparison

Money Market Interest$1,493.76
Savings at the FDIC national average (0.37%, Sept 2026)$111.41
Advantage$1,382.35

Money market accounts are FDIC insured up to $250,000. Rates are variable and may change.

Use the Money Market Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Money market accounts and traditional savings accounts both hold your cash safely, but they pay very different rates, and that gap is what determines how much interest you actually earn over time. The comparison matters most when rates are moving. The FDIC's national averages published September 21, 2026 (end-of-August data) were 0.63% for money market accounts and 0.37% for savings accounts; the annual percentage yield (APY) a given bank pays can sit far from those averages, so compare the rates you are actually offered.

The calculator treats the rate you enter as an annual percentage yield (APY), which already includes the bank's compounding, so the balance after t years is A = P × (1 + APY)^t, where P is your deposit and t is the number of months divided by 12. It then runs the same deposit at the FDIC national average savings rate, 0.37% in the September 21, 2026 release, and shows the difference as the money market account's advantage. How often the bank credits interest changes nothing once the rate is quoted as an APY; it matters only when a bank quotes a nominal interest rate instead.

Advertised APYs are not fixed. They shift with the broader rate environment and differ widely from one bank to the next, so the number you see today may not be the number you earn next quarter. Money market accounts can also carry minimum balance requirements or limits on withdrawals that quietly lower your effective yield, and account fees can erode returns further. Read the full terms on each account before you move your money.

Example: Comparing a $10,000 Deposit Over 3 Years

  1. 1 Input a $10,000 deposit, a money market APY of 4.75% and a period of 36 months.
  2. 2 Money market: $10,000 × (1.0475^3 − 1) = $1,493.76 of interest, for a balance of $11,493.76.
  3. 3 Savings at the FDIC national average of 0.37%: $10,000 × (1.0037^3 − 1) = $111.41. The calculator shows the money market account's advantage as $1,382.35.
  4. 4 The gap comes entirely from the rate, so it is only as real as the APY you are actually offered, and a variable rate can fall during the three years. Both account types at a bank are FDIC-insured up to $250,000; a money market mutual fund is not.

Source: FDIC, National Rates and Rate Caps · Last updated: September 2026

Frequently Asked Questions

What is the difference between a money market account and a savings account?
Money market accounts typically offer slightly higher interest rates, check-writing ability, and a debit card. Savings accounts are simpler with fewer features. Both are FDIC-insured up to $250,000. High-yield savings accounts have narrowed the rate gap significantly.
Are money market accounts safe?
Yes. Bank money market accounts are FDIC-insured up to $250,000, just like savings accounts. Do not confuse them with money market mutual funds, which are not FDIC-insured, though they are still considered very low risk.
What is the minimum balance for a money market account?
Minimums vary widely. Some online banks have no minimum; traditional banks may require $1,000-$25,000 to earn the advertised rate or avoid monthly fees. Always check the fee schedule and tiered rate structure before opening an account.

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