This study investigates the effect of market interest rates on the financial account in Taiwan with the sample period from July 1994 to September 2021. The sample data sources are from the Taiwan government’s database, the AREMOS database, and the IMF and IFS databases. The empirical results found that it showed capital outflow from Taiwan for most of the sample period, and the market interest rates were affected by monetary policy. In addition, the financial account has been significantly affected by the domestic market interest rates, gross domestic product, and seasonal factors etc. in Taiwan. The adjustment of the policy interest rates can affect the investors choice between domestic and foreign market investment, thereby change the balance of the financial account.