2
Money market or savings account?
Hello,
I’ve read that money market accts are typically better than savings accounts–including the obvious interest argument. However, I’ve narrowed down two banking options: one is a money market account w/ 3. 6% (OnBank), and the other is a savings account w/ 3. 75% (GMAC). All else is fairly equal. Should I go with the money market account with slightly less return, or should I go with the higher return, but stick to a savings?
Thanks guys
If the savings has a higher rate, go with that. Savings accounts are (usually) FDIC insured, meaning you can’t lose your money, whereas money market accounts are not. If the rate is higher and your money is insured, than the obvious choice is the savings account.
Money market accounts are typically only better if the interest is higher.
Was this answer helpful?
LikeDislikeDepends on what you want to do with the account. If your primary goal is to maximize interest, go with the higher interest rate. Make sure the account is FDIC insured. Money market accounts are typically FDIC insured (unlike the other answer). Typically savings account allow you more flexibility on withdrawls. Money market accounts also tend to have a higher minimum balance – so check what your primary focus is and invest accordingly
Was this answer helpful?
LikeDislike