While thinking of maintaining well financial health, it’s incredibly vital to get a savings account. It’s not just useful to keep your money safer; it also helps you save and gets special interest rates.
Usually, you can open a savings account with your other types after reviewing the available list of high yield savings accounts, like checking account for overdraft protection and automatic transfers. However, there are some different types of accounts work as a blend of savings as well as checking accounts.
It’s the comparable money market account that gets at favorable interest rates with including an ATM card. Along with a list of savings account interest rates and other related information, we’re going to take a look at these two accounts.
Savings Account
It’s a type of account you need to open in a bank that allows you to get a set amount of interest rates. Also, it helps you to boost up your savings. When it comes to the standards of interest, it depends on banks’ rules.
Most times, you’ll be eligible for higher rates in you keep a more elevated amount as balance. You also can get a higher rate if you link to your checking account in the same bank. The best one is that it provides you a higher interest rate with lower or no fees.
Above all, you’ll be able to use the money when you fall in any emergency. That means having a savings account is a great way to rescue when you’re in danger of needing money.
But, in lack of your caution, you may get added fees and get a hole in the savings. Some of the savings accounts charge fees monthly basis on your savings. But, you can skip it if you keep a minimum balance set by the banks.
Money Market Account
We already mentioned that this type of account is a combination of checking and savings accounts. That means if you make a money market account (MMAs), you’ll earn interest rates like a saving account.
It’ll avail you of a higher rate of interest with more features than a checking and savings account. It widely depends on what your bank offers you, though. Apart from higher profits, this account typically includes an ATM card and check-writing abilities.
You’ll get a simple way to access your deposited money than your savings account. All though all MMAs don’t offer all the features, you can get them by request.
Differences Between a Savings & Money Market Account
The largest difference between these two accounts is in terms of the accessibility of your fund. In a money-making account, it comes with an ATM card. The savings account doesn’t have this card, while you may often use savings accounts at an ATM using the debit card of your checking account.
Also, you’re unable to write checks when your savings account connected. Moreover, another big difference is on the rates of two reports.
MMAs provide higher rates of interest than your savings accounts. Such some other variations are out there where the money market account is a clear winner in this comparison.
