What's a good money market account rate considered to be this September?

With the current chances of an interest rate hike over 60% for when the Federal Reserve meets in September, both borrowers and savers may want to consider making some strategic moves now. For savers, that could mean exploring select account types which will allow them to take advantage of new, elevated rates. Keeping their funds in a traditional savings account, which currently comes with an average rate of just 0.38% , is no longer the right approach. Not only are savers failing to keep up with inflation by keeping money there, they're essentially losing money by not making the switch into a high rate alternative.

A money market account , however, can help rectify that dilemma and get you back on the right track. These accounts come with high interest rates that are well-positioned to increase in the fall thanks to their variable nature . If the central bank raise its rate, rates (and returns) on this account will tick up, too. At the same time, money market accounts won't restrict access the way some alternative account types will, allowing you to maintain flexibility and the ability to pivot if or when you want to readjust your approach.

Before making a switch, savers should know what to expect from this account type. That begins with understanding what a good money market account interest rate is actually considered to be this September. Below, we'll detail what they need to know to make an informed decision.

Start earning more interest on your money with a top savings account now .

Currently, the top money market account interest rates range from 3.80% to 4.00%. So, if you can find a money market account rate in this range, you can consider it to be a good one. Still, shopping around for accounts is encouraged. With rates and terms different from lender to lender, you'll improve your chances of securing the most competitive account rate by taking the time to review your options. That could mean using an online bank for this specific account type as they tend to offer higher rates than banks with in-person branch locations.

But don't wait too long to act, either. With that interest rate hike looming, some banks may even start offering higher rates before any Fed action is made official. And that could mean higher rates and better returns on your money market account. You won't be able to take advantage, however, without first having an active account.

Calculating interest-earning projections with a variable-rate account is difficult to do with precision, particularly now when the future of interest rate movement is so unclear. Assuming that the top rate of 4.00% holds over the next year and that no account activity impacts the principal, however, here's how much interest a money market account will earn calculated against five different deposit amounts:

A good money market account interest rate this September is considered to be one around 4% or higher. With a rate that high, savers can easily earn hundreds of dollars in interest over the next year with a moderate-sized deposit and potentially $1,000 or more, if they make a five- or six-figure deposit. And these calculations are all based on where rates stand this September.