What counts as a good money market account rate this September?

A money market account paying between 3.80% and 4.00% is considered a competitive rate this September, according to the personal finance guidance. Savers looking for higher returns are encouraged to compare available offers rather than leave funds in a traditional savings account.

The article puts the current average savings account rate at 0.38%. It argues that this level may leave savers unable to keep pace with inflation, making higher-rate alternatives more attractive.

Money market accounts offer variable interest rates, so a Federal Reserve rate increase could push their returns higher. The Federal Reserve’s September meeting carries more than a 60% chance of a rate hike, according to the article.

These accounts also preserve access to funds compared with some other savings products. Rates and terms vary among lenders, and online banks may offer more competitive rates than banks with physical branches. The article advises savers to act before any potential increase, since some banks could raise rates ahead of an official Fed decision.