Money market vs. savings: Which one is right for you?

A money market account and a savings account can both help you set money aside, but they may offer different ways to access your money and different account terms. The right option depends on how you plan to use the funds and the features that matter to you.

Key takeaways

• Both money market accounts and savings accounts are deposit accounts that can help you set money aside.
• A money market account may offer different access options or balance requirements than a savings account. Terms vary by account.
• Both account types may earn interest. Rates, fees and requirements vary by account.
• Review access, minimum-balance requirements, fees and how you plan to use the money before choosing an account.
• The FDIC lists money market deposit accounts and savings accounts among the deposit products it insures. Coverage depends on the account ownership category and other factors.

What is a money market account?

A money market account is a type of deposit account that may help you set aside money while keeping it available for future needs. Depending on the account, you may have access to features that are different from a traditional savings account.

Features, access methods, interest rates, fees and minimum-balance requirements vary by bank and account. Review the account terms before deciding whether a money market account fits your needs.

Learn more about money market vs. checking accounts.

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What is a savings account?

A savings account is generally used to hold money you do not plan to spend regularly. You may use one to build an emergency fund, save for a planned expense or work toward another financial goal.

Savings accounts often earn interest, although rates and terms vary by account. Some accounts may limit certain withdrawals or transfers, so review the account terms before opening or using an account.

If you are setting money aside for unexpected expenses, read about how to build an emergency fund. For information about moving money between accounts, review transfer limits.

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Money market vs. savings account at a glance

The main difference between a money market account and a savings account is the combination of features and terms each account may offer. Both can be used to set aside money, but access options, rates, fees and balance requirements can differ.

Which account may be right for you?

Choosing between a money market account and a savings account comes down to how you plan to use the money and the account details available to you. Compare current account terms before making a decision.

A money market account may be worth considering if:

• You want to set aside money but value the access options available with a particular account.
• You can meet the account’s balance or other requirements.
• You want to compare features beyond a traditional savings account.

A savings account may be worth considering if:

• You want a separate place to build an emergency fund or save toward a goal.
• You plan to make regular transfers from another account.
• You prefer an account designed primarily for money you do not plan to spend regularly.

Are money market accounts and savings accounts FDIC insured?

The FDIC lists money market deposit accounts and savings accounts among the financial products it insures. Deposit insurance coverage depends on factors including the account ownership category, so review the FDIC’s information for details that apply to your situation.

A money market deposit account is different from a money market fund. The two products may have different features and protections, so be sure to review the product information before opening an account or making an investment decision.

Learn more about what the FDIC is and what it does, or visit the FDIC’s deposit insurance information.

Compare your account options

Review account details and terms to decide which option fits how you plan to manage your money.

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