Have You Considered a Money Market Account? Here's Why You Should

Money market accounts aren't nearly as well-known by the average American as savings and checking accounts, but maybe they should be. Historically, money market accounts had some major drawbacks, particularly with minimum balance requirements, but thanks to the growth of online banking, that's no longer the case.

With some of the best features of high-yield savings accounts, and some of the flexibility of checking accounts, money market accounts can be the best of both worlds. Here's a rundown of the features money market accounts typically offer, and why you might want to consider opening one.

The best of both worlds

Money market accounts generally combine features of both checking and savings accounts. They typically offer an interest rate that is on par with what you'd expect from a high-yield savings account, but many also offer features like check-writing and a debit card linked to the account. Some excellent money market accounts are offered by well-known and highly reputable financial institutions, and they're FDIC-insured just like checking or savings accounts.

For example, the Discover® Money Market account is packed with features. It offers a high APY, and has no minimum balance or deposit requirements, nor does it have a monthly fee. Account holders can use a debit card for purchases or ATM access, and have the ability to write paper checks. Unlike many other online bank accounts, there are many different ways to deposit and withdraw money (including cash).

Our Picks for the Best High-Yield Savings Accounts of 2024

Product	APY	Min. to Earn
American Express® High Yield Savings Member FDIC. APY 3.80% Rate info 3.80% annual percentage yield as of January 1, 2025. Terms apply. Min. to earn $0 Open Account for American Express® High Yield Savings On American Express's Secure Website. Member FDIC.	3.80% Rate info 3.80% annual percentage yield as of January 1, 2025. Terms apply.	$0	Open Account for American Express® High Yield Savings On American Express's Secure Website.
Capital One 360 Performance Savings Member FDIC. APY 3.80% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening. Min. to earn $0 Open Account for Capital One 360 Performance Savings On Capital One's Secure Website. Member FDIC.	3.80% Rate info See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening.	$0	Open Account for Capital One 360 Performance Savings On Capital One's Secure Website.
Western Alliance Bank High-Yield Savings Premier Member FDIC. APY 4.40% Rate info The annual percentage yield (APY) is accurate as of Jan. 2, 2025, and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY. Min. to earn $500 to open, $0.01 for max APY Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website. Member FDIC.	4.40% Rate info The annual percentage yield (APY) is accurate as of Jan. 2, 2025, and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.	$500 to open, $0.01 for max APY	Open Account for Western Alliance Bank High-Yield Savings Premier On Western Alliance Bank's Secure Website.

It's worth noting that some banks use the term "money market account" rather loosely to describe something that is essentially a high-yield savings account. I generally consider a money market account to (at a minimum) offer a savings account-like yield and check-writing privileges. You need to know exactly what a specific "money market account" offers before you decide to open one.

Check out the top money market accounts right now if you're interested in learning more about what these accounts offer.

Is a money market account a smart choice for you?

There's no such thing as a perfect financial product for everyone, and money market accounts are no exception. For example, although money market accounts can offer competitive interest rates, if your priority is earning the maximum interest rate possible, you're more likely to find it with a high-yield savings account instead.

What's more, some features offered by certain online checking accounts, such as ATM fee reimbursement or a debit card that earns cash back on purchases, are rare or nonexistent in the money market world.

Having said that, if you want to earn a competitive yield while keeping your finances as flexible and convenient as possible -- and while only using one bank account instead of separate checking and savings -- a money market account is worth considering.