Close Menu

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    Walgreens Store Closures: Full List of Locations Shutting Down This Month

    June 4, 2025

    Expert Predicts Summer 2025 Travel Deals: 5 Budget-Friendly Destinations to Book Now

    May 28, 2025

    Walmart Addresses Trump’s Demand to Cover Tariff Costs

    May 25, 2025
    Facebook X (Twitter) Instagram
    Friday, June 6
    X (Twitter) Instagram
    NinepenniesNinepennies
    • Home
    • Featured

      The Highest-Paying Jobs in America—And It’s Not in Finance!

      March 27, 2025

      7 Must-Buy Costco Sale Items Before They’re Gone This February 

      February 10, 2025

      Steel Stocks on the Rise: 3 Winners After Tariff Announcements

      February 4, 2025

      The Best Oil Stocks to Invest $200 in Right Now

      January 28, 2025

      Top 10 Best Jobs of the Year: High Demand, Six-Figure Salaries, and Bright Futures

      January 23, 2025
    • Entrepreneur News

      Walgreens Store Closures: Full List of Locations Shutting Down This Month

      June 4, 2025

      Walmart Addresses Trump’s Demand to Cover Tariff Costs

      May 25, 2025

      Walgreens Expands Use of Prescription-Filling Robots to Reduce Costs and Support Pharmacists During Turnaround

      May 15, 2025

      Hooters Declares Bankruptcy

      April 8, 2025

      Costco to Open 6 New U.S. Stores Next Month and Another in April—See the Locations and Dates

      February 28, 2025
    • Financial Wellness

      Smart and Risky Spots To Store Your Cash, Coins, Crypto, and More

      April 24, 2025

      The Minimum Salary Needed to Be in the Upper-Middle Class in 2025

      March 21, 2025

      Should You Buy, Sell, or Hold Amazon in 2025?

      March 7, 2025

      From Hawaii to West Virginia: The Shocking 77-Year Gap in Retirement Savings Longevity

      February 24, 2025

      Are the 3 Highest-Paying Dividend Stocks in the Dow Jones Worth Buying?

      February 17, 2025
    • Popular Now

      European Markets Climb as Trump Moves to Cut Tariffs on Auto Parts

      May 1, 2025

      Robinhood Expands Trading to Include Bitcoin, Oil, and Gold Futures 

      January 30, 2025

      Powerball Winning Numbers for January 18: Oregon Player Takes Home $328.5 Million Jackpot

      January 21, 2025

      Morgan Stanley Surpasses Estimates With Robust Equities and Fixed Income Trading Revenue

      January 20, 2025

      10-Year Treasury Yield Edges Lower Amid Anticipation of Economic Data, Fed Remarks

      November 21, 2024
    • Wealth

      America’s 10 Wealthiest Self-Made Women, According to Forbes— #1 May Surprise You

      February 5, 2025

      8 Wealthiest Royals in History

      February 4, 2025

      One Powerful ETF That Grew $10,000 to $55,000 in a Decade: Is It Worth Buying in 2025?

      January 28, 2025

      Coinbase CEO Predicts Bitcoin Could Hit Multi-Million Dollar Value

      January 24, 2025

      Dogecoin Surged After Elon Musk’s Appointment: What’s Happening With This Popular Meme Coin?

      November 18, 2024
    NinepenniesNinepennies
    Home » Money Market Account vs. Savings Account: What’s the Difference? 
    Featured

    Money Market Account vs. Savings Account: What’s the Difference? 

    DunniBy DunniSeptember 25, 2024Updated:September 27, 20245 Mins Read
    Share Facebook Twitter Pinterest LinkedIn Tumblr Reddit Telegram Email
    Checking out tax returns form
    Source: Blue Accounting, Tax & Consulting Firm/Facebook
    Share
    Facebook Twitter LinkedIn Pinterest Email

    The money market account vs. savings account debate can confuse enthusiastic money savers. These two accounts, however, have many things in common, so distinguishing them apart may sometimes become difficult. 

    Growing money in a jar
    Source: Brian Tracy/Pinterest

    For example, funds left in a money market versus a savings account yield tangible interests equally. Indeed, depending on the prevalent interest rates, these two accounts can protect your finances from inflation-induced devaluation. Interestingly, despite having several similarities, the different rules governing the operation of a money market account vs. a savings account will influence your choice.

    Money market accounts and savings accounts both allow interest to accrue on deposits. However, the major difference lies in how account holders access their funds. A money market account functions more like a savings and checking account hybrid.

    In contrast, a savings account encourages frugality by making access to funds a tad bit burdensome; checking accounts give holders no-holds-barred access to their money. So, a money market account is sandwiched between a checking account and a savings account.

    There are two options for accessing funds in a savings account. One is to visit a brick-and-mortar branch of their bank to fill out a withdrawal slip. Two is to initiate a digital transfer to a checking account through their bank’s online portal. On the contrary, the money market account comes with a checkbook and debit card. So, account holders can draw funds without visiting a bank branch.

    A Savings Account: What It Is and How It Works  

    A savings account is a financial product that allows an individual to deposit money long-term and earn interest on the funds. The average savings account pays an interest of over 5% on deposits. Opening a savings account seldom costs much, deposits are unlimited, and monthly withdrawals are often capped.

    Dropping money into a piggy bank
    Source: Blue Accounting, Tax & Consulting Firm/Facebook

    Savings accounts suit individuals who want to set aside money for goals. For example, income earners can use it as a trove for their emergency fund. Similarly, it is possible to save towards a major purchase with the help of a savings account.    

    ALSO READ: What’s the Ideal Number of Savings Accounts That I Should Have?

    What Is a Money Market Account, and How Does It Work?  

    A common misconception about this financial product is that savers have to deal with money market accounts that are stuck for a set time. However, a money market account allows individuals to operate a pseudo-savings account. This account enables saving and simultaneously accessing the funds for bill payments and cash withdrawals. Withdrawals can be made through checks or a debit card.  

    Donor Dylan painting with one of his daughters
    Source: Easy Peasy Finance/YouTube

    One feature that distinguishes a money market account is its tiered interest rate. Unlike savings accounts with variable interest rates, the interest on funds in a money market account is a function of the current balance tier. Thus, a money market account is the best bet for individuals with huge funds to stash away.

    A money market account resembles a checking account in that it can be used for purchases and bill payments. However, money market accounts can indeed perform transactions similar to savings accounts. Nonetheless, there are often limits to how many of these transactions can be performed.  

    Pros and Cons of Money Market Account vs. Savings Account 

    Most savings accounts are insured by the National Credit Union Association (NCUA) or the Federal Deposit Insurance Corp (FDIC). These insurance schemes cover savings deposits of up to $250,000 for each account holder.

    Unfortunately, not all savings accounts offer competitive rates compared to the typical interest rate on money market accounts. Some offer interest rates as low as 0.01 percent. In addition, some banks offer a limited number of withdrawals on savings accounts.

    Distinguishing different savings accounts
    Source: Rob CPA/YouTube

    On the contrary, money market account interest rates offer comparatively better annual percentage yields (APYs) than savings accounts. This category of banking products also offers more transactional flexibility than savings accounts.

    The catch about NCUA/FDIC insurance for money market accounts rests on the holding bank. So, it is always best to ask if your funds would be insured before opening a money market account with any bank. The ease of access that money market accounts offer may be a bane for holders who struggle with spending discipline.

    ALSO READ: Checking vs. Savings Accounts: Key Differences Explained 

    How to Choose Between a Money Market Account and a Savings Account: Key Considerations  

    The choice between a money market account and a savings account hinges on multiple factors. Some of them are:

    • Purpose of the funds being stored in the account
    • The best rate and how fast we want the funds to compound
    • Running fees that come with the operation of any of the two account types
    • Account opening requirements.  

    All a prospective banking customer needs to do is identify the account attributes that best apply to their financial goals. After this, they simply need to visit a bank branch, provide the required details, and get an account opened. Overall, there’s no winner in the Money market account vs. savings account battle. Instead, the best outcome depends on the consumer’s financial preferences.

     

    Money money market account Savings Account
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous ArticleHow to Get Into Cyber Risk Management
    Next Article Understanding Construction Loan Interest Rates: What You Need to Know 

    Related Posts

    Financial Wellness

    Smart and Risky Spots To Store Your Cash, Coins, Crypto, and More

    April 24, 2025
    Editor's Picks

    The Highest-Paying Jobs in America—And It’s Not in Finance!

    March 27, 2025
    Featured

    7 Must-Buy Costco Sale Items Before They’re Gone This February 

    February 10, 2025
    Add A Comment

    Comments are closed.

    Top Posts

    How to Delete Credit Karma Account: Step-by-Step Guide

    October 14, 2024

    Home Depot Penny Items: How To Find Them

    October 17, 2024

    Introducing the 2025 Caterpillar Pickup Truck for the U.S. Market

    September 5, 2024
    Stay In Touch
    • Twitter
    • Instagram
    You Might Like

    Subscribe to Updates

    Get the latest tech news from FooBar about tech, design and biz.

    Most Popular

    How to Delete Credit Karma Account: Step-by-Step Guide

    October 14, 2024

    Home Depot Penny Items: How To Find Them

    October 17, 2024

    Introducing the 2025 Caterpillar Pickup Truck for the U.S. Market

    September 5, 2024
    Our Picks

    Walgreens Store Closures: Full List of Locations Shutting Down This Month

    June 4, 2025

    Expert Predicts Summer 2025 Travel Deals: 5 Budget-Friendly Destinations to Book Now

    May 28, 2025

    Walmart Addresses Trump’s Demand to Cover Tariff Costs

    May 25, 2025
    X (Twitter) Instagram
    • Home
    • Editor’s Picks
    • About Us
    • Get In Touch
    • Privacy Policy
    • Terms of Use
    • Editorial Standards
    © 2025 Ninepennies.

    Type above and press Enter to search. Press Esc to cancel.