Educational example: 4.9% is used here to demonstrate how to examine a displayed rate. It is not an offer, quote, guarantee or recommendation.
Start with the label
A money market account, a money market deposit account and a money market fund are not interchangeable names. They may differ in issuer, protection, price stability, access and risk. Confirm the exact product type before comparing rates.
Ask whether the number is APY
APY is intended to express a one-year yield including compounding assumptions. An interest rate alone may be lower than the APY and may be calculated differently.
Find the qualifying balance
A displayed 4.9% may apply to all balances, only a narrow tier, or only the portion of a balance inside a specified range. Read the tier table rather than relying on the headline.
Separate ongoing and promotional terms
A promotional rate may expire after a date or number of months. A variable rate may change at the provider's discretion. The post-promotion rate can materially affect the longer-term outcome.
Include friction
Monthly fees, transfer restrictions, minimum opening deposits and requirements to maintain linked services can reduce convenience or effective earnings.
Confirm where funds sit
Review the legal institution name, account ownership structure and any applicable protections. Marketing brands and underlying institutions may not always be the same entity.