What’s the difference between an HYSA and the money market?

57 viewsOther

Why do people see these as alternatives to one another?

In: Other

Anonymous 0 Comments

A high yield savings account is a savings account. Banks pay you by loaning your money out to other borrowers at a higher interest rate than they’re paying you.

A money market account is an investment in things like government and corporate debt. When you buy these types of debt, you’re loaning money to the government or a corporation at a particular interest rate, which is how you make money.