I have $30K in savings and my head is spinning reading about the differences between these. [https://yieldfinder.app/](https://yieldfinder.app/)
In: Economics
Savings account = regular bank account, the thing you get when you deposit your paycheque at a bank.
A money market account is like a combination of a savings account and a chequing account…you can do more things with it, and it sometimes pays more interest (but not always) than a savings account, but often comes with higher transactions fees or minimum balances.
For most purposes, they’re both normal bank accounts, just with slightly different account rules.
They’re both very safe, up to $250,000 they’re covered by a US government insurance program called FDIC (Federal Deposit Insurance Corporation). Even if the bank collapses, your money is protected.
However, there’s one level safer…the government itself. If *that* collapses we’ve all got bigger problems. So you can park your money directly with the government by buying various investments from the US Treasury, aka “Treasuries”. Since these are about as safe as it’s possible to stash your money, they tend to have slightly lower interest rate. They’re also not quite as simple as just having your money in a bank…it make take a little longer to extract it when you want it and you’ll need a brokerage account with somebody who can buy/hold/sell the investments for you when you ask them to.
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