Money Market Account Calculator

Savings & Banking

Tiered yield above a balance threshold.

Ending balance$91,443

Account details

Starting balanceWhat's in the account today

Monthly deposit

Monthly withdrawalMoney markets are liquid — model a regular draw

Rate structure

Base APYEarned on the first dollars

Tier 2 above

Tier 2 APY

Tier 3 above

Tier 3 APY

Blends to 3.42% at your current balance

Compare to savings APYA flat account to measure the money market against

Projection horizon

yrs

Advanced — compounding, fees, tax & inflation

Compounding frequency

APY already includes compounding — this is an equivalent 3.36% nominal rate; it does not change the balance.

Monthly fee

Minimum balanceThe fee is charged only in months below this

Tax on interestSwept once a year; set to 0 for a tax-free account

Inflation rateUsed for the real, purchasing-power figures

Ending balance$91,443After 5 years, including $13,443 of interest

Tiered ratesBeats savings by $1,494

Interest earned$13,443

Blended APY now3.42%Rises to 3.79% as the balance climbs the tiers

After-tax yield3.42%Same as the blended yield — no tax applied

Real yield0.89%After 2.5% inflation

Nominal APR3.36%The rate that, compounded, produces this APY

Fees paid$0

Real ending balance$80,823The ending balance in today's dollars

Total deposits$18,000

Interest15%

Starting balance$60,000
Net deposits$18,000
Interest$13,443

Your rate ladder

Each slice of the balance earns its own tier's APY, so the rate on your top dollars climbs as the balance grows. The markers show where you sit now and where the projection lands.

Balance projection

The money-market balance month by month against the flat savings account, with the minimum-balance line marked.

Money market
Savings

Money market vs savings

Ending balance under each account, from the same deposits.

This money market$91,443
Savings (3.25%)$89,950
Base rate only$85,182

What raises your balance

Projected ending balance under a few changes.

Current plan$91,443
Deposit $200 more$104,892
Rates +1%$95,550
Add $25k now$122,602

Monthly breakdown

Every month's deposit, withdrawal, interest, fee, tax sweep and balance.

Month-by-month money market breakdown
Month	Deposit	Withdrawal	Interest	Fee	Tax	Balance
1	$300	—	$169	—	—	$60,469
2	$300	—	$171	—	—	$60,940
3	$300	—	$173	—	—	$61,413
4	$300	—	$175	—	—	$61,888
5	$300	—	$176	—	—	$62,364
6	$300	—	$178	—	—	$62,842
7	$300	—	$180	—	—	$63,322
8	$300	—	$182	—	—	$63,803
9	$300	—	$183	—	—	$64,287
10	$300	—	$185	—	—	$64,772
11	$300	—	$187	—	—	$65,259
12	$300	—	$189	—	—	$65,747
13	$300	—	$190	—	—	$66,238
14	$300	—	$192	—	—	$66,730
15	$300	—	$194	—	—	$67,224
16	$300	—	$196	—	—	$67,720
17	$300	—	$198	—	—	$68,218
18	$300	—	$200	—	—	$68,717
19	$300	—	$201	—	—	$69,219
20	$300	—	$203	—	—	$69,722
21	$300	—	$205	—	—	$70,227
22	$300	—	$207	—	—	$70,734
23	$300	—	$209	—	—	$71,243
24	$300	—	$211	—	—	$71,753
25	$300	—	$213	—	—	$72,266
26	$300	—	$214	—	—	$72,780
27	$300	—	$216	—	—	$73,297
28	$300	—	$218	—	—	$73,815
29	$300	—	$220	—	—	$74,335
30	$300	—	$222	—	—	$74,857
31	$300	—	$224	—	—	$75,381
32	$300	—	$226	—	—	$75,907
33	$300	—	$228	—	—	$76,435
34	$300	—	$230	—	—	$76,964
35	$300	—	$232	—	—	$77,496
36	$300	—	$234	—	—	$78,030
37	$300	—	$236	—	—	$78,565
38	$300	—	$238	—	—	$79,103
39	$300	—	$240	—	—	$79,643
40	$300	—	$242	—	—	$80,184
41	$300	—	$244	—	—	$80,728
42	$300	—	$246	—	—	$81,273
43	$300	—	$248	—	—	$81,821
44	$300	—	$250	—	—	$82,370
45	$300	—	$252	—	—	$82,922
46	$300	—	$254	—	—	$83,476
47	$300	—	$256	—	—	$84,031
48	$300	—	$258	—	—	$84,589
49	$300	—	$260	—	—	$85,149
50	$300	—	$262	—	—	$85,711
51	$300	—	$264	—	—	$86,274
52	$300	—	$266	—	—	$86,840
53	$300	—	$268	—	—	$87,408
54	$300	—	$270	—	—	$87,978
55	$300	—	$272	—	—	$88,551
56	$300	—	$274	—	—	$89,125
57	$300	—	$276	—	—	$89,701
58	$300	—	$279	—	—	$90,280
59	$300	—	$281	—	—	$90,861
60	$300	—	$283	—	—	$91,443

How this is calculated

Each tier's slice of your balance earns its own APY, blending to 3.42% today — an equivalent 3.36% nominal rate once compounding is stripped out.
Starting from $60,000, deposits of $18,000 and $13,443 of interest build the balance to $91,443.
As the balance grows into the higher tiers, the blended rate climbs to 3.79%, so later interest is earned faster.
After inflation, the real yield is 0.89% and the balance is worth $80,823 in today's money.
Over the same period the tiered account earns $1,494 more than a flat 3.25% savings account.

Worked example

Park $60,000 for 5 years and this money market grows to $91,443, earning $13,443 of interest at a blended 3.42% APY. That's $1,494 ahead of a flat 3.25% savings account.

Calculation transparency

Know what this estimate is based on

Jurisdiction: General mathematical model
Scope and limitations: Projection only. Actual APY, posting dates, compounding, taxes, withdrawal rules, deposit protection, and fees depend on the financial institution and country.
Source links checked: Jul 30, 2026

Built and regression-tested by Smart Tools Lab. It has not been individually reviewed by a licensed financial, tax, or legal professional.

Primary sources

Calculation methodology All sources

How to use

01
Enter your starting balance — the money already sitting in the account, $60,000 in the default — then set the projection horizon in years and the flat savings-account APY you want the money market measured against (3.25% to start).
02
Under Rate structure, keep Tiered to give each slice of the balance its own APY: a base rate up to the first threshold, a middle rate to the second, and a top rate above it (2.00%, 3.50%, and 4.50% at the $10,000 and $50,000 breakpoints in the default). Switch to Single rate instead to enter one flat APY, and watch the blended figure update beneath the fields.
03
Set your monthly contribution and any monthly withdrawal. Because a money market is liquid, withdrawals draw the balance down each month and are capped at the balance rather than going negative; if they outpace deposits, the tool flags the month the account would run dry.
04
Open Advanced to choose a compounding frequency — this only resets the equivalent nominal APR, since the APY already bakes in compounding, so the ending balance does not change at all (monthly compounding of the 3.42% blended APY equals a 3.36% APR). Here you also set the monthly minimum-balance fee, the minimum-balance floor that waives it, your tax rate on interest, and an inflation rate.
05
Read the results panel for the ending balance, interest earned, and the blended APY now versus at year-end (3.42% climbing to 3.79% in the default), alongside the after-tax and real, inflation-adjusted yields. Then study the rate-ladder chart to see how your top dollars capture the premium tier and where the balance sits today against the projection.
06
Save the current setup, change a few inputs, and save a second to line the projections up side by side against a plain savings account. You can also use Copy, Share, and the CSV or Excel exports to hand off the full month-by-month schedule.

Formula

The calculator prices your balance in slices, the way tax brackets tax income. At the $60,000 opening balance, the first $10,000 earns 2.00% APY, the next $40,000 earns 3.50%, and the top $10,000 earns 4.50%. Averaged across those slices, the money weighs in at a blended 3.42% APY today. Because each deposit pushes more dollars into the upper tiers, that blended rate drifts upward as the account grows, reaching 3.79% by the projected ending balance. From there the tool walks month by month. It adds your $300 deposit, subtracts any withdrawal (never more than the balance holds), and charges the $12 minimum-balance fee only in a month the balance slips under the $2,500 floor. Interest is then credited at that month's blended rate. Once a year, tax on the interest earned is swept out. One subtle point governs the compounding control: an APY already contains its own compounding, so a flow-free year grows by exactly the APY regardless of frequency. Frequency merely restates that figure as a nominal APR, here 3.36% under monthly compounding, which is why changing it leaves the balance unchanged. Finally, 2.50% inflation deflates the results, turning the $91,443.49 ending balance into $80,822.72 of today's purchasing power and the headline yield into a real 0.89%.

Example

Start with $60,000, add $300 every month, and let it run for five years. The balance straddles three rate tiers: the first $10,000 earns 2.00% APY, the next $40,000 earns 3.50%, and the $10,000 sitting above $50,000 earns the top 4.50%. Weighted across those slices, the account earns a blended 3.42% APY right now. Because each deposit pushes more dollars past the $50,000 mark, that blended rate ladders upward to 3.79% by the final month. Monthly compounding credits the interest, and the $12 minimum-balance fee never bites because the balance stays well above the $2,500 floor. After five years the account reaches $91,443.49: $18,000.00 of that is your own deposits and $13,443.49 is interest. A plain savings account paying a flat 3.25% on the identical deposits would land at just $89,949.83, leaving the money market $1,493.66 ahead. Inflation trims the shine, though. At 2.50%, the real yield settles at 0.89%, and the ending balance is worth $80,822.72 in today's dollars.

Definitions

Money market account: A deposit account at a bank or credit union that usually pays more than basic savings while keeping your cash reachable, so you can withdraw without waiting out a term. In this calculator it earns a tiered rate and can carry a fee when the balance dips below a set floor, as with the default $60,000 account.
Tiered APY: A rate structure that slices your balance like tax brackets, with each slice earning its own APY rather than one rate applying to the whole sum. In the default the first $10,000 earns 2.00%, the next $40,000 earns 3.50%, and every dollar above $50,000 earns 4.50%, so your top dollars capture the premium rate.
Blended APY: The single effective yield your entire balance earns, found by weighting each tier's rate by the money sitting in it. At the $60,000 start the mix works out to 3.42%, and because more of the balance climbs into higher tiers over time, it rises to 3.79% by the projected ending balance.
APY vs nominal APR: APY is the true one-year growth with compounding already folded in, whereas the nominal APR is the plain annual rate that, compounded at a stated frequency, reproduces that APY. Compounded monthly, the default 3.42% APY corresponds to a 3.36% nominal APR via n·((1+APY)^(1/n)−1).
Compounding frequency: How often credited interest is put to work so it can earn interest of its own. Because APY already accounts for compounding, changing this setting leaves the ending balance unmoved and only shifts the equivalent nominal APR — the reason the compounding control does not move your projection.
Minimum balance requirement: The balance floor you must stay above to keep the maintenance fee waived. The default sets it at $2,500, and since the account never falls that low, the fee is skipped every month for a $0 total charge.
Monthly maintenance fee: A flat charge applied only in months the balance sits under the minimum and dropped in months it stays above. Here it is $12, but because the balance never breaches the $2,500 floor, it is never actually deducted.
Liquidity / withdrawals: The ability to pull cash out of a money market whenever you need it, unlike a CD that locks your money until maturity. Withdrawals reduce the balance, are capped at what remains, and can drain it entirely — a $5,000 balance with no deposits and $400 taken monthly runs empty in month 13.
After-tax yield: The return that survives the tax charged on interest, which this tool sweeps out once a year. At the default 0% rate it matches the pre-tax yield, but any positive rate would shave down the interest you actually keep.
Real yield (after inflation): Your growth restated in today's purchasing power once inflation is removed. At 2.50% inflation the 3.42% blended yield thins to a 0.89% real yield, and the $91,443.49 ending balance is worth $80,822.72 in current dollars.
Money market vs savings: A head-to-head that funds a plain savings account with the identical deposits at one flat APY and measures the difference. The gap can favor either side; here the MMA finishes at $91,443.49 against $89,949.83 for a 3.25% savings account, an edge of $1,493.66.

Good to know

How a money market account works

A money market account sits between a checking account and a certificate of deposit. It is a deposit account held at a bank or credit union, usually carrying federal insurance up to the standard limits, and it pays interest on the cash you keep in it. What separates it from a plain savings account is the pairing of a higher, balance-sensitive yield with day-to-day access to your money. You can add funds, and you can pull funds out, without locking anything away for a fixed term. Two levers are entirely in your hands, and this calculator treats them as the primary inputs: deposits and withdrawals. In the default projection you begin with $60,000 and add $300 every month for five years. Deposits lift the balance; withdrawals draw it down. Everything else the account does follows from where that balance sits. The rate is the part you do not fully control. Money market rates are variable: the bank can revise them as market conditions shift, which is why every figure here is an estimate rather than a promise. The rate is also tiered. Rather than one flat yield on the whole balance, the account pays a schedule of rates, with higher tiers reserved for larger balances. Your top dollars can earn the premium rate while your first dollars earn the base rate. Because the yield depends on the balance and the balance depends on your deposits and withdrawals, the three inputs move together. Add more, climb into a higher tier, and the blended rate improves. Spend the balance back down and the blended rate eases off. The calculator resolves this month by month: it applies your cash flows, checks the balance against the account's minimum, then credits interest at the tier rate the balance qualifies for, and carries the result forward. The sections that follow unpack each piece, starting with the tiered rate that gives a money market account its distinctive shape. This is general education, not financial or tax advice.

Tiered APY and your rate ladder

Tiered APY works like a tax bracket schedule, and the analogy is worth holding onto. The balance is sliced into bands, and each band earns its own annual percentage yield. A dollar does not jump the whole balance to a new rate when it crosses a threshold; only the dollars sitting inside a given band earn that band's rate. The overall figure you actually receive is the blended APY: the weighted average of every tier's rate across the money you hold. The default tiers make this concrete. The first $10,000 earns 2.00%. The next $40,000 — the slice from $10,000 up to $50,000 — earns 3.50%. Everything above $50,000 earns 4.50%. At the $60,000 starting balance, the money is arranged as $10,000 at 2.00%, $40,000 at 3.50%, and $10,000 at 4.50%. Weighting each rate by its dollars gives $200, $1,400, and $450 of first-year interest, or $2,050 on $60,000. Divide that back into the balance and the blended APY is 3.42%. Here is the feature that defines the rate ladder: the blend rises as the balance grows. Every additional dollar lands in the top tier, so it earns 4.50% rather than the lower rates on the money beneath it. The more the balance climbs above $50,000, the more of it sits in that top band, and the more the weighted average drifts upward. In the default projection the balance grows from $60,000 to $91,443.49 over five years, and the blended APY climbs with it from 3.42% now to 3.79% at the ending balance. That upward drift is also the catch. Below the top tier, the blend is dragged down by the base rates on your first dollars, so a money market account rewards larger balances and can trail a strong high-yield savings account when your balance is modest. The ladder pays off most clearly when a sizable share of your money reaches the premium rung. Rates here are variable, so the tier schedule your bank publishes today can change.

APY already includes compounding

The compounding-frequency control is the input most people expect to matter, and it is the one that does not move the ending balance at all. The reason is that the rate you enter is an APY, and an APY already has compounding baked into it. Annual percentage yield is defined as the total growth a balance earns over one year with no deposits or withdrawals. If you park money and leave it alone, it grows by exactly the APY over twelve months whether the account compounds daily, monthly, or quarterly. The APY is the finished number; the frequency is already inside it. So what does the compounding setting actually change? It changes the equivalent nominal rate — the APR — that produces that APY. A nominal rate is the annualized per-period rate before compounding is counted, and it relates to the APY through the number of periods per year. Compound more often and each period's slice is smaller, but the periods are more numerous, and they converge on the same yearly total. The conversion is APR equals n times the quantity one plus APY raised to the power one-over-n, minus one. Run the default numbers through that formula. A 3.42% APY compounded monthly corresponds to a nominal APR of about 3.36%. The gap of roughly six hundredths of a point between the two is the compounding effect made visible: the account posts 3.36% spread across twelve monthly credits, and those credits earning on each other lift the yearly result back up to 3.42%. Compound the same 3.42% APY daily instead and the nominal rate would sit a hair lower still, yet the year-end balance would be identical. This is why moving the frequency control leaves the projection unchanged and only restates the rate. It is a genuine point about how quoted rates work: when a bank advertises an APY, it has already done the compounding arithmetic for you, and comparing two accounts by their APYs is an apples-to-apples comparison regardless of how often each one compounds.

Minimum balance and monthly fees

A money market account usually asks you to keep a floor balance, and it charges a monthly fee only when you fall below it. This calculator models that rule literally. In any month the balance sits at or above the minimum, the fee is waived and nothing is deducted. In any month the balance dips under the minimum, the flat monthly fee is charged. The test is applied month by month, so the same account can pay a fee in one month and skip it in the next as the balance moves. The default settings show the friendly case. The minimum balance is $2,500 and the monthly fee is $12, but the balance starts at $60,000 and only grows from there, so it never comes close to the floor. The fee is waived in all sixty months, and total fees over the five years are $0. That is the intended state for a well-funded account: the minimum is a formality you clear easily, and the yield accrues without erosion. The fee becomes real when withdrawals pull the balance down toward the floor. Because you can take money out, a stretch of heavy withdrawals can carry the balance under $2,500, and once it does, the $12 charge begins to bite in exactly the months you are below the line. Those charges compound the problem: they lower the balance further, which can keep it under the minimum longer. A separate illustration makes the extreme visible. Start with $5,000, add no new deposits, and withdraw $400 every month. The balance grinds down step by step and is exhausted in month 13, at which point the calculator flags the depletion month. That scenario is not the default projection; it is a stress test that shows how quickly a small balance drawn on steadily can cross the minimum, rack up fees, and run out. The practical takeaway is to size your deposits and withdrawals so the balance stays clear of the floor rather than skimming it.

Liquidity: deposits and withdrawals

Liquidity is the trait that makes a money market account feel like reachable cash rather than locked-away savings. You are not committing to a term. Funds can go in and come out, and the calculator represents both directions as monthly cash flows layered on top of the interest the account earns. Each month it adds your deposit, subtracts your withdrawal, then credits interest at the blended rate on what remains, and carries the new balance into the following month. Withdrawals follow a simple, realistic rule: you cannot take out more than is there. A monthly draw is capped at the available balance, and the balance is never allowed to go negative. If a withdrawal would overshoot, only what remains is paid out, the account lands at zero, and the month it empties is flagged as the depletion point. That guard keeps the projection honest when a draw is large relative to the balance, and it is what powers the $5,000, $400-a-month illustration that runs dry in month 13. The contrast with a certificate of deposit is the heart of the trade-off. A CD typically pays a fixed rate in exchange for tying your money up for a set term, with a penalty for early access. A money market account gives up that fixed-rate certainty and, in return, lets you reach the money whenever you need it. You accept a variable rate and, often, a minimum-balance requirement, and you gain the freedom to add and withdraw at will. Which side of that trade wins depends on whether you value access or a locked-in yield for money you are sure you will not touch. For the default plan, liquidity costs nothing: the $300 monthly deposits only push the balance up the rate ladder, no withdrawals occur, and the account ends at $91,443.49. The point of modeling withdrawals is to let you test the other case — to see how a planned draw reshapes the balance, lowers the blended rate as the balance slides back down the tiers, and, if the draw is steep enough, how long the money lasts.

Taxes on your interest

The interest a money market account pays is ordinary income. In a standard, taxable account the money market credits interest to you each month, and this calculator lets that interest accrue untouched through the year; then, once a year, it sweeps out the tax you would owe on the twelve months of interest earned. That yearly timing mirrors how most people actually settle up. Your bank reports the interest on a Form 1099-INT, and you report it on that year's return rather than paycheck by paycheck. In the default projection the tax rate is set to zero, so all $13,443.49 of interest stays in the account and the ending balance is the full $91,443.49. Raise the rate and the picture changes quickly, because each annual sweep removes dollars that would otherwise have kept compounding. What tax really costs you is not just the tax itself but the future growth those withdrawn dollars would have produced. That compounding drag is why the rate you enter matters more over a five-year horizon than over a few months. The account wrapper matters as much as the rate. Interest inside an ordinary bank or brokerage money market is taxed in the same year you receive it. The same balance kept inside a tax-advantaged wrapper, for instance a traditional or Roth IRA, is not taxed the same way, and a money market fund holding municipal securities can pay interest that is exempt from certain taxes. This tool models a plain, taxable account and applies a single flat rate. It does not know your bracket, your state, or which wrapper holds the money. Set the rate close to your own marginal rate if you want the ending balance to reflect what you would actually keep, or leave it at zero to see the pre-tax picture. Either way, treat the tax figure as a planning estimate. For how interest income fits your specific circumstances, a tax professional is the right source; this calculator is not tax advice.

Inflation and your real return

Growth on paper and growth in purchasing power are two different things. The nominal figures in this projection, a 3.42% blended APY today and a $91,443.49 balance in five years, count dollars. Inflation asks a harder question: what will those dollars actually buy? To answer it, the calculator deflates the ending balance by the inflation rate you enter, converting future dollars back into today's. At 2.50% inflation the effect is substantial. The 3.42% blended APY that looks healthy on its own shrinks to a real yield of 0.89% once rising prices are subtracted. Most of the headline return is simply keeping pace with the cost of living, and only the thin margin above inflation represents ground genuinely gained. The ending balance tells the same story from the other direction: $91,443.49 five years out carries the buying power of $80,822.72 in today's money. The account still finishes ahead of inflation here, which is the goal, but the real gain is far smaller than the nominal one. This gap is worth internalizing, because it reframes what a good rate means. A money market paying a rate barely above inflation is treading water in real terms. If the rate slips below inflation, which can happen because money market rates are variable and reset, the real yield turns negative and the balance loses purchasing power even as the dollar figure keeps climbing. A larger nominal number is not automatically progress. The inflation rate you choose is an assumption, not a forecast, and small changes to it move the real figures noticeably. Enter a number that reflects the environment you expect over your horizon, and read the real ending balance as the more honest measure of what the account is doing for you. The nominal balance is what the statement will show; the real balance is what it will be worth. Both matter, but for long-horizon planning the second is the one to keep your eye on.

Money market vs savings vs CD

To make the comparison fair, the calculator runs a plain savings account alongside the money market on identical terms: the same $60,000 start, the same $300 monthly deposit, the same five years. The only difference is the rate. The savings account earns one flat APY across the whole balance, while the money market earns its tiered, blended rate. Whatever gap appears at the end is the money-market advantage, and it can land on either side. In the default scenario the tiered account wins. A flat 3.25% savings account grows the same deposits to $89,949.83, while the money market reaches $91,443.49, a lead of $1,493.66. The edge comes from the rate ladder. Because the balance sits well into the top tier, its highest dollars earn 4.50% and lift the blended APY to 3.42% now, climbing toward 3.79% as the balance grows. The larger the balance, and the more of it that reaches the premium tier, the wider the gap. That advantage is not guaranteed. Tiered pricing rewards size, so a smaller balance that never climbs past the lowest tier earns close to that tier's modest rate, and a strong high-yield savings account paying a flat rate can beat it outright. Raise the comparison rate above the money market's blended APY and the savings account pulls ahead. The practical lesson is to compare the blended APY at your actual balance, not the headline top-tier number. Certificates of deposit occupy a different corner. A CD typically pays a fixed rate for a locked term, and in exchange for giving up access you often get a higher, guaranteed rate that will not drift down if market rates fall. The trade-off is liquidity. Money market cash stays available, as the tool's separate depletion example shows, while CD funds are committed until maturity, usually with a penalty for early withdrawal. A money market suits cash you may need; a CD suits cash you are certain you can set aside. Many savers hold both.

Choosing and using a money market account

A few habits make a money market account work in your favor rather than against it. Start with the minimum balance. This tool charges the monthly fee only in months the balance falls below the minimum and waives it otherwise; in the default scenario the balance never nears the $2,500 floor, so the fee is $0. But a $12 monthly fee is $144 a year, and on an account that would otherwise pay a modest real yield, letting the balance dip below the floor can quietly erase much of your interest. Keep a comfortable cushion above the minimum. Compare rates the right way. A tiered account's advertised top rate applies only to the dollars in the top tier, so the number that matters is the blended APY at the balance you will actually carry, here 3.42% rather than the headline 4.50%. Run your own figures and weigh that blended rate against a flat high-yield savings account; below the top tier, the flat account often wins. And read the rate in real terms, since a strong-looking APY means little once inflation is subtracted. Mind the fine print beyond the rate. Watch for withdrawal limits, transfer rules, and fees the marketing does not lead with, and remember that money market rates are variable. The rate that looks attractive today can reset lower tomorrow, which is exactly why locking a CD sometimes makes sense for money you will not touch. Finally, match the account to the job. A money market shines as a home for liquid cash, an emergency fund or a near-term savings target, precisely because you can reach the money when you need it. Cash you are certain you can leave alone may earn more in a CD. One plain note to close. Every number here is an estimate produced from the inputs you enter, and real-world rates, tiers, and fees change over time. This calculator is an educational planning tool, not financial, tax, or legal advice. For decisions specific to your situation, consult a qualified professional.

Frequently asked questions

Is this projection a guarantee?

No. Money market APYs are variable, so the banks reset them whenever short-term rates move, and the 3.42% blended rate you enter today may not hold for the full five years. This tool assumes your tiers and rates stay fixed so it can draw a clean projection, which means the $91,443.49 ending balance is an estimate under that assumption, not a promise. If your bank raises or cuts a tier, rerun the numbers.

What is a money market account, and how is it different from a savings account or a CD?

A money market account (MMA) is an interest-bearing deposit account that usually pays more than basic savings and often tiers its rate by balance, while still letting you take money out. It differs from a regular savings account mainly because higher balances can earn a premium rate, and it differs from a certificate of deposit (CD) because a CD locks your money for a fixed term while an MMA stays liquid. This calculator leans on that liquidity by letting you model monthly withdrawals, something a CD would penalize.

How does the tiered APY work, and why does my blended rate rise?

Tiers work like tax brackets: each slice of your balance earns its own tier's APY, not one flat rate on the whole amount. At the $60,000 start, the first $10,000 earns 2.00%, the next $40,000 earns 3.50%, and the last $10,000 earns 4.50%, which weighted together is a blended 3.42% APY. As deposits and credited interest push more of your balance into the top tier, the blend climbs, reaching 3.79% by the projected ending balance of $91,443.49.

Why doesn't the compounding frequency change my ending balance?

Because APY already includes the effect of compounding. A stated 3.42% APY means a fee-free, flow-free balance grows by exactly 3.42% over a year whether interest posts daily, monthly, or quarterly, since the frequency is already baked in. That is the entire purpose of APY as a comparison figure, and it is why the compounding control moves the nominal APR readout while leaving the balance itself unchanged.

What does the nominal APR figure mean?

The nominal APR is the plain, un-compounded rate that, compounded at your chosen frequency, reproduces the APY. It is computed as n × ((1 + APY)^(1/n) − 1), so a 3.42% APY compounded monthly corresponds to a 3.36% nominal APR. The APR sits a little below the APY because compounding supplies the difference; the two would be equal only with no compounding at all.

How is the monthly minimum-balance fee applied?

The fee is charged only in months your balance sits below the minimum, and in any month you stay at or above the floor it is waived. With a $2,500 minimum and a $60,000 balance that never dips near it, the default projection charges $0 in fees across all five years. If withdrawals or a smaller starting balance dropped you under the floor, the tool would deduct the $12 in exactly those months.

Can I actually lose money in this account?

On the balance itself, no; the principal does not fall from market swings the way an investment can. Your balance can still shrink two ways in the model, though: minimum-balance fees in months you are below the floor, and withdrawals that outrun the interest you earn. In the default scenario neither bites, so the balance only grows, but change the inputs and the tool will show fees and net drawdowns plainly.

How are withdrawals and liquidity handled?

Each month the tool applies your deposit and then your withdrawal — capped at whatever is actually in the account, so the balance never goes negative — before crediting that month's interest on what remains. Because money markets are liquid, there is no early-withdrawal penalty; the only cost of drawing the balance down is the interest and tier premium you give up. If withdrawals ever empty the account, the tool flags the depletion month, as when $5,000 with no deposits and $400 pulled out monthly runs dry in month 13.

How does the tool treat tax on interest?

The calculator accrues interest monthly but applies tax once a year, sweeping the estimated tax on that year's interest out of the balance. The default rate is 0%, so the full $13,443.49 of interest stays in the account; raise the rate and the annual sweep will trim both the balance and the effective yield. This is a simplified single-rate treatment rather than a full return, and MMA interest is generally taxed as ordinary income.

What does the real yield tell me?

Real yield restates your return in today's dollars by stripping out inflation, so you see growth in purchasing power instead of headline figures. At 2.50% inflation, the 3.42% starting blend works out to a real yield of about 0.89%, and the $91,443.49 ending balance is worth $80,822.72 in today's money. It is the more honest gauge of whether your savings are genuinely getting ahead of rising prices.

When does a money market beat a high-yield savings account?

An MMA wins when enough of your balance reaches the upper tiers to push the blended rate past a flat savings APY. In the default case the 3.42%-and-rising blend edges out a flat 3.25% savings account, finishing $1,493.66 ahead. Below the top tier the math can flip, though: if most of your money earns the low tier, a strong high-yield savings account paying one good flat rate can come out on top, which is exactly what the side-by-side comparison is there to reveal.

Is my money insured, and is this financial advice?

Deposits at an FDIC-insured bank or NCUA-insured credit union are typically protected up to the applicable limits, but confirm coverage with your own institution, since this tool does not verify it. Nothing here is financial or tax advice; it is an estimate built from the assumptions you enter, and real rates are variable and can change at any time. Verify the latest terms with your own bank, and speak with a qualified advisor before you act.

Why does the blended APY shown now differ from the one at the ending balance?

The blended rate depends on how your balance is spread across the tiers, and that spread shifts as the account grows. Today's $60,000 splits into $10,000, $40,000, and $10,000 across the three tiers for a 3.42% blend, but by the $91,443.49 ending balance far more sits in the 4.50% top tier, lifting the blend to 3.79%. Seeing both numbers shows you where you stand on the rate ladder and how much of the balance still has to climb before the top rate leads.

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