Discover the difference between these two savings options. 

When you’ve built up your savings, you might wonder, “Where’s the best place to keep my money?” Savings accounts and money market accounts are two options that provide safety, access to your money and pay interest. However, they work a bit differently.

Savings accounts are simple and easy

A savings account can be opened for any amount – there are no minimums and no maximums. Open an account, make a deposit and you’re on the way to reaching your savings goal!

Savings accounts bear interest which makes them more valuable and safer than stashing cash at home. Often, there is a minimum balance for earning interest; at Consumers, savings accounts earn interest on balances over $50.

Money in savings accounts is safe because the funds are protected by the federal government. Each individual is covered up to $250,000 by Federal Deposit Insurance Corporation (FDIC) at banks or National Credit Union Administration (NCUA) at credit unions.

At Consumers, you can easily transfer money between a savings and other accounts 24/7 through online and mobile banking.

At many financial institutions, a monthly fee is charged for account maintenance. At Consumers, there is no monthly fee when you opt into eStatements.

Savings accounts are simple: you save, you can earn interest, you have easy access to your money and your money is safe.

Money market accounts are also simple – but pay more

Money market accounts offer all the advantages of a savings account – interest, safety, access – with some important differences.

Money market accounts pay higher interest than savings accounts, but they require a minimum balance. To open a Consumers money market account, you can start with as little as $2,500; there are no monthly service fees; your savings are insured by NCUA, and you have 24/7 access to your money through online and mobile banking. Other financial institutions might limit how many transactions are allowed each month with their money market accounts.

Some money markets offer check writing services, too. With Consumers online and mobile banking, it’s easy to transfer money wherever you need it.

Money Market Account is NOT a Money Market Fund

One thing to be aware of is that money market accounts are not the same as money market funds. A money market fund is an investment tool that keeps money liquid with low risk. However, money market funds are not backed by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA). There’s a possibility that a money market fund could lose value in the same way the stocks can.

Get started with a savings or money market account today

Setting up a Consumers savings account or money market account is easy online or in person at one of our offices. We’re here to help you save for the things that are important to you!

 

Federally insured by NCUA