Money Market Account Vs. High Yield Savings Account

High-yield savings accounts have become popular in recent years as a high-interest-earning alternative to conventional savings accounts. But there’s another type of deposit account where your money can grow safely with high APYs: money market accounts.

At first glance, high-yield savings accounts and money market accounts have many similarities, but there are some differences that can help you decide which account is best for you.

A A high-yield savings account is a deposit account where your money grows faster (at least compared to conventional savings accounts) while remaining fairly accessible. High-yield savings accounts are offered by many (but not all) online and in-person banks.

Many high-yield savings accounts have no or low minimum balance requirements to start earning interest. For example, Varo Savings Account You need to deposit at least $0.01 to start earning interest.

On the other hand, money market accounts usually have higher minimum balance requirements. These minimum balance requirements can range from a few hundred dollars to several thousand dollars. However, it’s still possible to find money market accounts that don’t have a minimum (or have a low one). The Ally Bank Money Market Account An option with no minimum balance requirement. This account also does not charge any monthly maintenance fees.

Check text and debit card access

The biggest difference between these two accounts is that money market accounts allow you to write checks and use a debit card directly linked to the account. These capabilities allow you easier access to your cash than most high-yield savings accounts, which rarely have these features.

If you have a high-yield savings account that only works online and spend money, you’ll need to transfer the cash to your checking account, which can take anywhere from 1-3 business days, and then you’ll either be able to withdraw the cash or Able to use your debit card.

The general minimum balance requirement is perhaps the biggest difference between a high-yield savings account and a money market account. Money market accounts may have minimum balance requirements of hundreds or even thousands of dollars. If you think you’ll have trouble keeping that much money in your account, you should switch to a money market account.

These minimum requirements make money market accounts a little less suitable for an emergency fund than a high-yield savings account. You never know when you will need to withdraw cash Emergency funds – and you never know how much you’ll need.

CNBC Select consistently recommends Marcus by Goldman Sachs High Yield Online Savings account because it does not charge any fees for overdrafts, additional transactions or monthly maintenance.

When it comes to getting quick and easy access to your cash, money market accounts beat high-yield savings accounts because of their check writing capabilities and debit card access. That way, you can bypass the extra steps to withdraw your money from a high-yield savings account The Quantic Bank Money Market Account, for example, offers an APY of up to 5.00% and only requires a minimum opening deposit of $100. It also gives you a debit card so you can easily — and quickly — withdraw your money

But if you still prefer to go with a high-yield savings account, you can look for one that offers an ATM card or a debit card of its own, which isn’t very common. The UFB high yield storage A high-yield savings account that offers an ATM card. The Ally Bank Savings Account Also offers ATM cards, but only for customers who have an Ally Bank checking account.

Money market accounts and high-yield savings accounts have a lot in common, but the differences can be real dealbreakers — such as when it comes to minimum deposit requirements in money market accounts. Alternatively, checking accounts and debit card access may make this type of account more accessible than a high-yield savings account.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Each deposit account review is based on rigorous reporting by our expert writers and editors with extensive knowledge of banking products. Although CNBC Select earns a commission from affiliate partners on many offers and links, we create all of our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. see For more information on how we select the best banking products, see our methodology.

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