What’s the difference between Savings and Money Market accounts? Some say they have different amounts you can withdraw money but that doesn’t seem like enough of a difference to justify having a separate name for them. I’ve heard there’s very slightly more risk in a money market account but idk if that’s true. The interest rates seem to be the same or similar in most places. What’s the deal?
In: 5
There are a few differences:
– MMA’s (money market accounts) have debit cards or check privileges, letting you pay directly from your account without having to first transfer to a different account.
-MMA’s tend to yield higher interest than regular savings
-MMA’s have more restrictions, like minimum balance
Because of the variable interest rates, fees, and minimum balance, MMA’s are usually seen as a short term savings account. When saving for things like retirement, traditional savings accounts tend to be more appropriate.
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