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Money Market Account vs. Savings Account
Money market and savings accounts frequently offer comparable rates, with the main differentiator usually being features — specifically check-writing access — rather than yield alone.
Key Differences
| Feature | Money Market | Savings |
|---|---|---|
| Check-writing | Often included | Rarely included |
| Minimum balance | Sometimes required | Usually $0 at online banks |
| Rate | Comparable to savings | Comparable to money market |
Which Should You Choose?
If you want check-writing access, a money market account (from providers like Fidelity or Ally) makes sense. If you don't need that feature, a straightforward savings account with no minimum balance may be simpler.
Don't Assume Money Market Pays More
Despite the name suggesting something more sophisticated, money market accounts don't automatically outyield savings accounts — always compare actual current rates before choosing based on assumptions.
Common Mistakes
Choosing a money market account specifically for a higher rate without confirming it's actually better than a comparable savings account — the rates are frequently similar.
Frequently Asked Questions
They're similar but distinct — money market accounts often include check-writing and sometimes require a minimum balance, while savings accounts typically don't offer check-writing but often have no minimum.
Not automatically — compare actual current rates between the two, since the gap is often minimal or nonexistent, making feature needs (like check-writing) the more important factor.