Money Market vs High Yield Savings

When it comes to saving money and investing it, there are various options that one may have. However, they need to evaluate all these options separately to identify which one’s the best for their needs. Among these options, two of the well-known choices are money market accounts and high yield savings accounts.

What is a Money Market Account?

A money market account is an account offered by most financial institutions. It provides investors with high interest on their savings. Similarly, investors can write cheques from these accounts and even get a debit card. Essentially, the money market account is a deposit account. There are a few restrictions on the number of transactions per month, though. Mostly, the limit is six transactions each month.

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The money market accounts were highly beneficial in the past as they returned higher returns than some regular savings accounts. However, the rates have decreased substantially. The latest money market accounts provide similar returns on deposits as regular savings accounts. However, there are still some other options available to investors.

Investors can invest in higher yield money market accounts. However, there are some requirements for those. For example, these accounts require a higher minimum balance or some other specific requirements. Investors need to evaluate all their options before considering the account in which they want to invest.

What is a Savings account?

A savings account is one of the most commonly found account types in financial institutions. The primary focus of these accounts is investors wanting to store their funds and earn interest on it. A savings account allows investors to keep their money in it. Similarly, investors can deposit and withdraw money from the account at any time.

Unlike the money market account, however, a savings account does not provide investors with chequebooks. Investors need to visit the bank in-person or use online withdrawals to make transactions. Some banks may also link debit cards to savings accounts, through which users can withdraw money from an ATM.

High-yield accounts also come with higher annual percentage yields compared to the standard savings accounts. Similarly, these accounts are FDIC-insured and have all the features of normal savings accounts. Similar to high-yield money market accounts, the high-yield saving accounts may also come with minimum balance requirements.

What are the similarities and differences between both options?

The similarities between the money market and high-yield savings accounts are many. These are both great options for investors looking to multiply and grow their savings. They both come with FDIC insurance, allowing much better security for investors. They also come with various limitations, such as minimum balance requirements and transaction limits.

The main difference between the money market and high-yield savings accounts is the access they give to money. As mentioned, money market accounts provide investors with chequebooks, while saving accounts do not have the same option. However, none of these accounts is the best option for investors looking to make regular transactions.


Investors have two options, among others, when it comes to investing in savings accounts. These are the money market and savings accounts. Both of these options allow investors to grow their savings. Similarly, both come with high-yield options, allowing investors to earn even better returns on their savings.

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