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Money Market vs Savings Account – What’s the Difference?

By now, you’re no stranger to the fact that having a solid savings plan is key to having a solid financial foundation. And one of the best ways to make sure you have a solid financial foundation is by building up your emergency fund. But with so many savings account options out there, where is the best place to allocate your money? Today, we’re diving into the world of savings, especially money market accounts vs savings accounts. Let’s jump in. 

What Is A Savings Account?

A savings account is a type of account offered by your local bank or credit union that’s used to safely store your money while you’re saving up for your next financial goal. Whether that goal is a family vacation, new car, or even gifts for next Christmas, these types of accounts offer a worry-free place to put your money. 

But there are some things you should know before you open an account: Savings accounts aren’t as accessible as checking accounts and usually don’t provide you with a debit card or the ability to write checks. There’s also a limit on how many withdrawals you can make per month (usually six or less)1. And most offer a small annual percentage yield (APY) on your balance each month. 

What Are The Benefits of A Savings Account?

The benefit of putting your cash into a savings account is that it’s safe and secure—as long as your bank of choice is FDIC-insured. The Federal Deposit Insurance Corporation (FDIC) insures all accounts up to $250,000 per account holder.2 So, if you’re planning on leaving more than that in one savings account, you may want to consider opening up a second . . . just to make sure you’re covered. 

What is A Money Market Account?

A money market account is a type of savings account offered by banks and credit unions that allow you to earn higher rates of interest on your money. Money market accounts are also highly liquid meaning that you have the option of writing checks and utilizing a debit card for the account. 

Money market accounts are great places to save for your next down payment on a home, car, or large purchase since it offers you a higher earning potential on your deposit. But like regular savings accounts, most banks put a limit on how many withdrawals you can make per month (usually six or less) . . . unless you’re doing it in person or at an ATM. 

What Are The Benefits of A Money Market Account?

One of the biggest benefits of a money market account is how liquid it is. Not only do you have the option of using a debit card for the account, you can also write checks. If you’re using a money market account to save up for emergencies or even your pre-retirement savings, you’ll be able to get to your money when you need to without hassle. Just make sure you check to see if there’s a minimum balance required in your account before you make your withdrawals. And don’t worry, a money market account is just as safe as a savings account—if it’s backed by the FDIC.  

Money Market Accounts vs Savings Account: Which Should I Choose?

If you’re looking to open a new savings account, but you’re stuck between a money market account vs savings account, the best thing to do is look at your why. What do you plan on using the account for? Do you need access to it in a pinch? Are you looking for somewhere safe to store your money but you don’t want it to be too accessible? Those are all great questions to ask yourself as you’re deciding where to put your money. 

Both money market accounts and savings accounts are great tools for building up your savings and your overall financial foundation. So, if you’re ready to start saving and want help coming up with a plan (and advice on the best place to store it), a financial advisor can help. Contact your local SageSpring Wealth Partner today and we’ll help you find the best account for your financial needs. 

Opinions expressed are those of SageSpring Wealth Partners and are not necessarily those of Raymond James. All opinions are as of this date and are subject to change without notice. The information contained in this blog does not purport to be a complete description of the securities, markets, or developments referred to in this material. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation.

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Jeffrey T. Dobyns


President, SageSpring | Financial Advisor, RJFS 

Jeffrey T. Dobyns

President, SageSpring | Financial Advisor, RJFS

Beyond crunching numbers and investment strategies, at SageSpring, we’re about building relationships. When you encounter Founder & President of SageSpring, Jeff Dobyns, it’s easy to understand why this is at the very heart of who we are as a firm. You won’t find stuffy formalities with Jeff; instead, you can expect to find him sharing a warm smile, communicating a compelling vision, or patiently untangling life’s complex challenges with clients. He believes in truly getting to know clients, understanding their aspirations and priorities, and navigating their financial plans with a tailored, comprehensive approach. Our team members have often been caught taking notes on Jeff’s effortless relationship skills from a distance, and we admire them for striving to learn from one of the best. 

Jeff’s financial expertise and wisdom are the perfect match to his innate people skills. Jeff holds the prestigious CERTIFIED FINANCIAL PLANNERTM certification, Chartered Life Underwriter (CLU®), and Chartered Financial Consultant (ChLU®) designations, and has held executive positions with financial planning firms for more than two decades. 

His dedication extends beyond the office to the boardroom and the local community, where Jeff is passionate about giving back. He serves as Chairman of the Board of Men of Valor, a prison ministry and mentoring program. Jeff also serves on the board of Send Musicians to Prison, which shares hope, healing and restoration with the imprisoned through musicians & artists. Jeff actively supports other initiatives in the community by sitting on the board of The Signatry of Middle Tennessee and the Halftime Institute of Nashville. 

Witnessing his four children, Gracyn, Hunter, Tanner, and Logan, excel on the field is almost just as rewarding, if not more, than celebrating the victories of seeing his clients overcome obstacles and build wealth. Spending weekends boating on the lake, hiking mountain trails, and fishing with his family are the moments Jeff cherishes most. It’s this grounded perspective that reveals the true meaning of wealth for Jeff: not just numbers on a page, but the freedom to create experiences that enrich your life and the lives of those you love. When you choose the Dobyns McMillin Wealth Team, you choose more than financial expertise. You choose a partner who champions your dreams, celebrates your victories, and walks besides you on the path to achieving your unique goals.

**Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER TM, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.