Frequently asked questions

Money Market Interest Rates

 

Does a money market account earn interest?

Yes, a money market account is a type of savings account that pays you interest on your account balance. A money market account may offer tiered interest rates, with different rates available based on your daily collected balance. The higher your balance, the higher your interest rate may be.  

What is the interest rate on a money market account?

Rates vary based on many factors, including your region, current market conditions, and the balance in your account. View Current Rates

How are money market interest rates determined?

The interest rates for money market accounts are ultimately determined by the Federal Reserve and may fluctuate per state and municipality based on local legislation.

You do, however, have some control over the interest rate for your money market account. BBVA Compass offers tiered interest rates based on your Daily Collected Balance. The more you deposit in your money market account, the more you may earn. See Rate Chart

How do I calculate savings in my money market account?

The daily collected balance method is used to calculate interest on the account. This method applies a daily periodic rate to the daily collected balance in the account each day.

Here’s how to calculate what you may earn:

  1. To determine your daily periodic rate, divide your APR by 365.
  2. Then, calculate how much you may earn in interest for that day by multiplying your starting balance by the daily periodic rate.
  3. Add the interest earned to your money market balance, plus any deposits. Deduct any withdrawals. This will give you a starting balance for the next day.
  4. Repeat this calculation to determine how much interest you may earn per week, month, or year.

 

Get started with a money market account

Want to start earning more interest on your savings? Learn more about our BBVA Compass ClearChoice Money Market Account.