A headline rate is a starting point, not a conclusion. Before comparing it with anything else, identify the product type, the exact rate label, and the conditions required to receive it.
1. Identify the product
“Money market” can refer to different things. A deposit account and a money market fund are not interchangeable. Their protections, risks, pricing, and access rules can differ.
2. Identify the number
Look for the full term: APY, annual interest rate, seven-day yield, introductory APY, or “up to” rate. A percentage without its label is incomplete information.
3. Find the qualifying balance
Some rates apply only within a specific balance tier. Others fall when the balance exceeds or drops below a threshold.
4. Find the expiration logic
Ask whether the rate is variable, promotional, or tied to a broader benchmark. A rate that can change tomorrow should not be treated as fixed.
5. Translate the rate into your use case
Consider expected balance, how often money must move, transfer speed, fees, and whether the account’s access rules fit the purpose of the cash.