A money market account and a savings account are similar types of deposit account. The major difference between these two deposit accounts is the way in which withdrawals can be made. Money market accounts allow check writing and debit card purchases while Federal law won’t allow either of these for savings accounts. Both deposit accounts have a federal limit of six withdrawals per month unless the withdrawal is made via ATM in which case there is no limit.
Money Market Accounts
Most banks offer money market accounts to their customers. These accounts are a great way to keep part of your money safe from the ups and downs of the economy. Due to the limited number of withdrawals, your money stays safe from you using it for frivolous purchases. Money market accounts are FDIC insured accounts and tend to gain more interest than a savings account. Depending on the bank, even the best money market accounts might have fees or a minimum balances to keep, but there are usually ways to waive the fee. For example, if you transfer money from another account to your money market savings account, within the same bank, the fee to your money market account will be waived. This option not only helps you avoid fees, but will help you save money without even putting forth the effort.
Deciding how to keep your money safe can be a hard decision. Many different banks claim their accounts, including money markets, offer the best interest rates. How do you know you are making the best decision? You could browse the different banks websites, or find all the different rates offered by looking at our money market chart. Finding the best money market account available is easy through the resources provided on RateCatcher’s savings charts.