Money Market Account Vs. Savings Account – Which is Right for You?

What’s the difference between a money market account and a savings account? Which one is right for my needs? While everyone has different savings goals and aspirations, you’ll find that either a money market account or a savings account can help you reach them – just in slightly different ways. Here are the benefits of each type.

Starting a Money Market Account

Money market accounts are like a hybrid of CDs (certificates of deposit) and savings accounts. Unlike CDs, however, your money isn’t tied down for a set period of time. Money market accounts at www.aurorabankfsb.com for example, have a minimum deposit of $1,000 and allow you to make up to six withdrawals per statement cycle. Doing a little comparison shopping online can help you get the best rates on money market accounts. Rates can and do change on a day to day basis, so using a money market calculator may be able to help you approximate how much of a return you can get on your investment. In short, money market accounts are best suited for long term purchases and savings, where you can safely build your money over time.

Starting a Savings Account

Along with checking accounts, savings accounts are one of the most popular ways to manage your money effectively. Although they pay slightly less than a money market account, savings accounts allow you to access your money whenever you need it, rather than having a set number of withdrawals. This flexibility also brings about a lower interest rate, but many people find that having convenient access to their money without restrictions is worth a slightly lower rate. Savings accounts also tend to pay higher rates than interest-bearing checking accounts, so you have even more of an incentive to grow your savings. These days, a traditional savings account isn’t the only banking product you can use. Today, many savings accounts can be accessed by ATM, telephone or through an online banking system.

The Best of Both Worlds

One of the most comforting points to know about money market accounts and savings accounts is that both are insured by the FDIC (Federal Deposit Insurance Corporation) for up to $250,000 per depositor, per account type at member banks. This means that even in the highly unlikely event that the bank becomes insolvent, your money is still safe and secure. Since the FDIC was created, not a single account owner has lost money due to a bank becoming insolvent. That’s a golden track record of keeping your finances safe for over 70 years!

The Bottom Line – Which is Best?

Both banking products have minor but significant differences. Depending on your savings and financial goals, each one is suited perfectly for its intended use. If you have questions about which type of account could make your money work best for you, visit www.aurorabankfsb.com bank's website to learn more about their products and services. You’ll find that both types of account can pay you a return on your investment in exchange for different levels of flexibility and convenience.

Jess Hall writes out of Jersey City about balancing her personal finances and investing for her retirement, with products like money market accounts and savings accounts from her bank www.aurorabankfsb.com. She likes to read informational articles on about money, such as https://www.aurorabankfsb.com/articles/banking-articles/high-yield-money-market-accounts-are-great-investment. Jess usually shares these findings with her friends and family.