Choosing How to Save: Money Market vs Savings Account
Choosing the right savings account is important. After all, it could have a lasting impact on your finances. That’s why Santander Bank doesn’t take a “one size fits all” approach and provides several different types of savings accounts.
What is a Money Market Account?
A money market account is a type of savings account that also allows you to write checks from it. When we talk about money market vs savings accounts and the differences between the two, we’re looking at the more traditional savings account, like the Santander® Savings account, vs money market accounts, like the Santander® Money Market Savings account. When comparing the options, don’t confuse money market accounts with money market mutual funds. Money market mutual funds are not a savings account, they’re a type of non-deposit investment that is not insured by the FDIC.
Difference Between Money Market and Savings Accounts
Money market accounts and savings accounts have many differences, but they have a few things in common, too. Both types of accounts are:
Up to $250,000, per depositor, per category of account ownership, and per institution. For more information visit the FDIC website.
Interest rates on savings and money market savings are subject to change at any time without notice. Rates between account types may vary, but both accounts earn interest.
You can only make 6 transfers or withdrawals per service fee period, unless they are made in-person at a branch or at an ATM1
Rates and Requirements
One of the main differences between money market and savings accounts is the interest rate. A money market account typically offers a higher interest rate than a traditional savings account. However, in return for that higher interest rate, there may be stricter requirements for opening an account, such as a higher opening deposit and monthly balance requirement.
Now that you know the basics of money market vs savings accounts, discover the unique differences of savings accounts available from Santander Bank. Compare savings accounts now to find the right fit for your needs.
1 We limit withdrawals and transfers out of your savings and money market savings accounts. You can withdraw or transfer funds from a savings or money market savings account a total of six (6) times per Service Fee Period (such as by automatic or pre-authorized transfers using telephone, online banking, mobile banking, overdraft protection, payments to third parties, wire transfers, checks, and drafts). If you repeatedly exceed these limits, we may close or convert your account to a checking account, which may be a non-interest-bearing checking account.