Money Market Account

Estimate MMA interest, APY growth, and savings balance.

Formula & Methodology

Balance grows as A = P(1 + r/n)^(nt) using the MMA's APY and compounding frequency.

Worked Example

$10,000 in an MMA at 4.5% APY compounded monthly grows to about $10,460 in one year.

Frequently Asked Questions

What is a money market account?

An interest-bearing account at a bank or credit union that often offers higher yields than a standard savings account and may include check-writing privileges.

Is MMA interest guaranteed?

Rates are variable and can change. Accounts at FDIC-insured banks are insured up to applicable limits, but the rate is not locked.

How is APY different from the rate?

APY reflects compounding over a year, so it is the true annual yield. Compare APYs, not nominal rates, when shopping for accounts.

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