Money Market or Savings: What to Select?

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A Money Market Account (MMA) and a savings account are both good options if you are looking for saving money. It can be a challenging task to select between them if you are aware of both the plus and minus. In this article, let us elaborate on money market accounts and savings accounts so that you can select wisely from what you prefer.

What is a Money Market Account?

The general definition of a money market account states it is a kind of savings account that provides short-term returns like fixed deposits. It can offer higher interest rates than savings accounts at times. Some financial institutions even charge fees for maintaining the minimum amount of deposit or minimum balance. Check the features of money market accounts below.

High Interests

MMA offers higher interest rates for the deposited money in your account. It can vary according to the deposited amount or account balance. This feature drives the depositor to deposit more into the account and gain higher interest amounts in return.

Safety and Access

The money market is insured by the Federal Deposit Insurance Corporation (FDIC), making it more secure and credible. Compared to stock market investments, MMA offers better safety and confirmed returns periodically.

High Liquidity

MMA offers high liquidity and access to the deposited amount at any time. Even with the limitations of withdrawal amounts and monthly transactions, you can utilize facilities like cheques and debit cards with your account.

What is a Savings Account?

As the commonly used type of account, savings accounts are self-explanatory. In short, it’s a bank account for long-term usage to store and gain interest from it. Let’s learn more about its features.

Safety

A savings account offers the safe storage of your saved money even if the market conditions are volatile. Backed with FDIC insurance, savings accounts are best for long-term usage offering good interest rates according to the market.

Minimum Balance

Unlike market money accounts, a savings account does not necessarily have low or minimum amount limitations. Depositors can choose to have a minimum balance account or a nil balance account according to their own choice or conditions.

Liquidity

The savings account has the capability to be versatile in terms of liquidity. It means a person can have a high liquidity option or low liquidity, which depends on the type of account the depositor has selected. This choice can help the depositor to control their spending and transactions automatically.

Money Market or Savings: What to Select?

It is clear that both the money market and savings have their good and bad in general. The selection of the best saving method depends on you and your financial preferences.

A Money Market Account (MMA) and a savings account are both good options if you are looking for saving money. It can be a challenging task to select between them if you are aware of both the plus and minus. In this article, let us elaborate on money market accounts and savings accounts so that you can select wisely from what you prefer.

What is a Money Market Account?

The general definition of a money market account states it is a kind of savings account that provides short-term returns like fixed deposits. It can offer higher interest rates than savings accounts at times. Some financial institutions even charge fees for maintaining the minimum amount of deposit or minimum balance. Check the features of money market accounts below.

High Interests

MMA offers higher interest rates for the deposited money in your account. It can vary according to the deposited amount or account balance. This feature drives the depositor to deposit more into the account and gain higher interest amounts in return.

Safety and Access

The money market is insured by the Federal Deposit Insurance Corporation (FDIC), making it more secure and credible. Compared to stock market investments, MMA offers better safety and confirmed returns periodically.

High Liquidity

MMA offers high liquidity and access to the deposited amount at any time. Even with the limitations of withdrawal amounts and monthly transactions, you can utilize facilities like cheques and debit cards with your account.

What is a Savings Account?

As the commonly used type of account, savings accounts are self-explanatory. In short, it’s a bank account for long-term usage to store and gain interest from it. Let’s learn more about its features.

Safety

A savings account offers the safe storage of your saved money even if the market conditions are volatile. Backed with FDIC insurance, savings accounts are best for long-term usage offering good interest rates according to the market.

Minimum Balance

Unlike market money accounts, a savings account does not necessarily have low or minimum amount limitations. Depositors can choose to have a minimum balance account or a nil balance account according to their own choice or conditions.

Liquidity

The savings account has the capability to be versatile in terms of liquidity. It means a person can have a high liquidity option or low liquidity, which depends on the type of account the depositor has selected. This choice can help the depositor to control their spending and transactions automatically.

Money Market or Savings: What to Select?

It is clear that both the money market and savings have their good and bad in general. The selection of the best saving method depends on you and your financial preferences.

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