Our pick for earning interest: Quontic Bank Money Market
- Competitive rates
- No monthly fees
- User-friendly online banking platform
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Wondering what the difference is between a money market account vs. a money market fund? Both offer the opportunity to earn, but they’re actually quite different. Explore our guide on money market accounts vs. money market funds to see which is right for you.
Money market accounts are savings accounts with high minimums while money market funds are mutual fund investments with no guarantee of return. Here are the key differences:
|Money market account||Money market fund|
|About||High-yield savings account with limited transactions and steep minimums||Highly accessible mutual fund with fluctuating returns|
|Minimum deposit||Up to $25,000||Up to $5,000|
Both accounts are relatively safe. But money market accounts take the edge on safety because they’re federally insured and your earnings aren’t tied to the market. The only time your balance will dip is if you withdraw funds.
Still trying to figure out whether a money market account or money market fund is right for you? This may help:
Compare the following elements to decide which investment is best for you:
These accounts may share a similar name, but both offer a unique earning opportunity with discerning features and drawbacks. Money market accounts have high minimums and rates but limited accessibility. And money market funds have fluctuating returns coupled with low minimums and fees.
Review your account options with multiple providers before you make a decision.
Earn 0.25% APY, but you’ll pay a maintenance fee if your balance drops below $1,000.
Compare their pros and cons, then explore your options.
The key differences and how they can affect your ability to save.
The difference between money market and traditional savings accounts.
The 2.35% APY is attractive, but personal checks are $22 per box and transactions are limited.
Scoping out a convenient way to save? These money market accounts offer check-writing privileges, debit cards and minimal fees.
An account with a premium price and deposit requirements — without premium features.
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