Is there a winner in the debate of money market vs. savings account?

Money market account and a savings account differ in small variations. Money market account and savings account are not different like apples and bananas and they are not similar too. The following is the comparison on special characteristics Money market VS savings account.

These accounts are offered as long term investments. The rate of interests offered by money market account is generally high when compared to saving schemes. The rate of interest offered by money market savings account will be determined by the amount left in the account and if the balance is higher, the interest will be higher and vice versa. Money market savings accounts are more liquid when compared to others and allow the account holder to withdraw money when required. However, a minimum amount of required balance should be maintained in the account. 

A traditional savings account is an intermediate account type between a money market account and a checking account. The account holder needs to access the account at frequent intervals. 

A savings account can be opened and operated more easily and these are high liquid accounts as it allows cash withdrawals at any time. But the rate of interests offered is typically low when compared to other type of accounts. Interests are offered at different rates by different banks. And the rate of interest offered by most of the banks will be stable for a longer period and tends to increase gradually. Several facilities are also offered by savings account. Even though the rate of interest is low, it is a guaranteed income for the account holder. The major drawback is that the account should be maintained with a minimum balance as insisted by the bank and this may also vary according to each bank. If the minimum balance is not maintained, the account will be charged with interest or penalty. 

ATM card enables easy and instant cash withdrawal. Some accounts are offered with over draft facilities and loan facilities too. Savings accounts are offered in different types and include students savings account, business savings account, savings account for children, minor account, etc.,

Common grounds of both types of accounts include FDIC insurance coverage up to the maximum of $250,000 for a single account. Both types of accounts offer attractive and smart retirement saving options and plans. Banks offering savings accounts are facing tough competition from money market savings accounts.