Provider, Our Rating, APY, Bonus ; Featured Lending Club LevelUp Savings, 4.3, 5.00% *, N/A ; SoFi Bank, 4.8, 4.30%, Up to $300 bonus ; UFB Direct High Yield Savings Account, 4.6, 4.57%, N/A ; Discover Bank Online Savings Account, 4.6, 4.00%, N/A
VIO Cornerstone Money Market Savings Account: 5.05% APY ; Quontic Bank Money Market Account: 5.00% APY ; Zynlo Money Market Account: 5.00% APY
A money market account is a financial product offered by banks and credit unions that allows you to safely store your funds while earning some interest. Money market accounts combine some features of checking and savings accounts. Here’s what makes money market accounts unique and what you need to know to determine if they’re a good fit. Money market accounts are similar to savings accounts, but they have some transactional features such as checking accounts. For example, a money market acco...
Once the account is open, you cannot withdraw your money until the selected amount of time has passed. If you do, you usually have to pay a penalty fee. In exchange for this loss in flexibility, banks tend to offer higher interest rates on CDs than on other accounts. ; Most CDs offer fixed rates throughout their term. Once you lock in your interest rate, it won’t change, making CDs good for savers who want a guarantee that their interest rate won’t drop. However, if market rates rise, the money in the CD will be stuck at a lower rate, which can make long-term CDs a risk. ; A money market account differs from a CD in that the money market account has checking account features. For instance, you can usually write checks from it. You may also get a debit card. Additionally, a CD is a time-deposit account, while a money market account isn’t.
You’re likely to find that online banks offer the highest interest rates on savings and money market accounts and may have little to no fees. Without physical branches, these banks can...
Savings accounts ; Money Market account options ; CD accounts
J · Jess Ullrich ; B · Ben Luthi ; Money market accounts (MMAs) are deposit accounts that share features of savings and checking accounts. Like a savings account, your balance earns interest. However, you may also have the ability to write checks and/or use a debit card for account transactions like you would with a checking account. Besides having components of savings and checking accounts, money market accounts also have distinct features that set them apart. Here’s what to know if you’re interested in opening one. ...
Vault’s Viewpoint ; Money market accounts blend the check-writing and debit card capabilities of a checking account with the high interest rate of a savings account. ; MMAs may come with higher minimum deposit requirements than savings accounts. ; While they may come with extra features, look out for withdrawal limits and minimum balance requirements that make MMAs unlikely substitutes for typical checking accounts.
Vault’s Viewpoint ; A money market account is an interest-bearing account that functions like a hybrid of a checking and savings account ; Some perks of money market accounts include high yields, easy access to funds and protection from federal insurance. ; Money market accounts may have monthly fees that could eat into your overall returns.
A savings account is a financial product that allows you to deposit money and earn interest. A money market account is very similar to a savings account but offers some more transactional features.