2 Responses to Should I Get A Money Market Account Or Savings Account?

  1. Anonymous says:
    February 25, 2010 at 3:35 pm

    In my experience, traditional savings accounts typically pay lower interest rates and have limited withdrawal capability BUT will allow you to keep a smaller balance (if money gets tight) without incurring a service charge.
    Money market accounts are often viewed as savings/checking accounts in which you earn higher interest rates and can withdraw more like a checking account, BUT they often require higher minimum balances to keep from getting a service charge.
    Hope that helps!
    ______________________________________…
    I think Cleetus may be thinking about money market funds:
    “There are two types of money markets: Money Market Funds (MMF) and Money Market Accounts (MMA). A MMF is an investing option, such as stocks and bonds, which is another article by itself. So, for purposes of this comparison, we’re going to talk about MMA’s.
    Money Market Accounts are kind of like a traditional savings account on vitamins. MMA’s are usually high-yield, meaning they pay a higher interest rate than their traditional counterparts. MMA’s also typically often check-writing capabilities or provide you with a debit card so you can get to your money when you need it.
    Like the savings account, MMA’s keep your money liquid, meaning you can access it at any time without paying big penalties for early withdrawals. Some accounts do limit you on the number of transactions you can have per month so pay attention to that when you’re comparing accounts.”

  2. Cleetus says:
    February 25, 2010 at 4:03 pm

    A savings account is good if your going to be making more transactions. A Money Market you dont really make withdrawls from. So if your going to let it sit, get a money market. If you think you might need that money within the year, savings.