(MP) Money Market Accounts (MMAs) allow savers like you to earn higher interest rates on their money; typically, in exchange for maintaining a minimum account balance. Plus, high yield savings accounts MMAs are eligible for federal deposit insurance, just like regular savings accounts.
Money market accounts can be a great low-risk investment stash for building a business, an emergency fund or just saving cash. And there many competitive options out there with the highest yielding money market rates. Internet banks, traditional banks and alternative lending institutions are all dying for your savings deposits.
Money Market Accounts vs. Savings Accounts?
Both MMA and Savings Accounts pay interest on deposits, and again your money in both are insured by the Federal Deposit Insurance Corporation (FDIC). Plus, both allow you to make as many deposits as you want. However, for both accounts there is a limit of six withdrawals or transfers per statement cycle — a limit set by federal law. It’s important to note that the limit does not apply to ATM withdrawals.
The primary difference between a money market account and a savings account is how you can get access to your funds. Today, it’s not uncommon to find money market accounts that allow users to write checks, make electronic transfers and use ATM and debit cards. With a savings account, however, you may need to take money out via electronic transfer or by calling the bank. There can be a difference in interest rates with MMAs vs. savings accounts — but not always. Sometimes savings accounts offer a slightly higher rate than an MMA — a tradeoff for the greater range when accessing money market accounts.
The main differences between the two is this: A money market account (MMA) might make sense when you want to write checks on an account, but not too many. A savings account might be right when you want to put cash away for larger emergencies or future major purchases — when you want to be able to get access to your money, but not too often. So consider when shopping for a new MMA and Savings accounts, to compare the account’s rate, minimums, accessibility and benefits. By doing your homework before you open an account, you maximize the chances that you’ll find the right vehicle for you.
Use the filters below to find the highest yield money market and savings accounts available for you!
Latest posts by Don Briscoe (see all)
- What Millennials need to know about retirement planning - May 22, 2017
- Job seekers: Don’t forget employers check your credit report - May 18, 2017
- How Your Tax Refund Can Eliminate Your Debt? - April 4, 2017