What's the difference between a money market account and a savings account?

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asked Dec 17, 2018 in Other-Finance by MattBrock (290 points)
What's the difference between a money market account and a savings account?

1 Answer

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answered Dec 18, 2018 by Krisaboudua (330 points)
Money market accounts are almost the same thing but the main difference between a Money market account and a savings account is that with a money market account you can withdraw funds from the money market savings account up to 3 to 6 times per month and they pay higher interest rates on your money than a regular savings account.

A money market savings account also sometime has a higher minimum balance requirement than a regular savings account.

As for a regular savings account they sometimes pay less interest, do not allow withdraws for a certain period of time and you can usually start the regular savings account with less money and don't have a minimum balance requirement.

I have and prefer a Money Market Savings account because it pays higher interest than a regular savings account.

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