How Do You Access Your Money In A Savings Account Versus A Money Market Account

When it comes to saving money, choosing between a savings account and money market account is a common decision. While both accounts offer many advantages, they differ significantly when it comes to how you access your money. From savings account to money market account, this blog post will guide you on how to access your money and make the best decision for your savings plan.

Guaranteed Interest Account

Savings Account:

 

A savings account is a traditional account that stores your money while earning interest at a set rate. Typically, savings accounts are straightforward to use, with banks and credit unions providing quick and easy access to your funds. You can deposit and withdraw your funds in person, online or over the phone. Online tools such as mobile banking and online transfers have also made it much more convenient to access your money anytime and anywhere.

 

Some limitations come with savings account withdrawals. Federal regulations only allow up to six monthly electronic transfers, including automatic payments to your bills, to external accounts or third parties. If you exceed those limits, your bank may charge you an excessive withdrawal fee or even close your account. Some banks might allow you to bypass those limits with ATM withdrawals or in-branch transactions.

 

Money Market Account:

 

Money market accounts are similar to savings accounts, except that it typically yields a higher interest rate. Accessing your money in a money market account typically involves writing checks or making electronic transfers, similar to a checking account. A few differences exist such as:

 

1. Minimum Balance: 

To maintain a higher yield and avoid fees, several money market accounts require a higher minimum balance than savings accounts.

 

2. Limits on Checks: 

While a money market account may permit check writing, some banks may put a limit on the number of checks allowed per month.

 

3. Federal Regulations: 

Like saving accounts, federal regulations limit Money Market account deposits and withdrawals to six per month.

 Must Read This: How Do I Open A Zero Balance Savings Account In India?

Conclusion:

 

Ultimately, the choice of whether to use a savings account or money market account depends on your needs as a saver. When instant access is crucial, a savings account is generally easier to use with its flexible funding and withdrawal options. If you want to earn higher interest rates and have less frequent transactions, the Money Market account could be a viable option. We suggest you analyze the advantages and disadvantages of each account type before making your final decision. Whichever account you choose, make sure you keep a tab on the minimum balances, fees and withdrawal limits to avoid any penalties.

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