High Yield Savings vs. Money Market Account: What’s the Difference?
How high yield savings and money market accounts compare on rates, access, minimums and insurance, and why a money market account is not the same as a money market fund.
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Both are insured bank deposit accounts that pay a variable rate. A money market account sometimes adds checks or a debit card and may need a higher balance, while a high yield savings account usually pays as much or more with fewer features. The FDIC national averages as of Oct 19, 2026 are 0.38% APY for savings and 0.63% for money market accounts, and top online savings accounts pay far more than either. Do not confuse a money market account with a money market fund, which is an investment and is not FDIC insured.
Side by side
| High yield savings | Money market account | |
|---|---|---|
| Type | Bank deposit account | Bank deposit account |
| FDIC insured | Yes, at insured banks | Yes, at insured banks |
| Rate | Variable | Variable, sometimes tiered by balance |
| National average APY (Oct 19, 2026) | 0.38% | 0.63% |
| Checks or debit card | Rarely | Sometimes, depending on the bank |
| Minimums | Often low or none | Sometimes higher to open or to earn the best rate |
| Best for | Earning the most on cash you rarely touch | Savings you want to spend from directly now and then |
Which pays more?
It depends on the bank, not the account type. National averages favor money market accounts, but the best online high yield savings accounts pay far more than either average. The top no strings savings rate we track is 4.40% APY. Compare the specific accounts, not the labels.
Money market account vs. money market fund
The names are nearly identical, but they are very different products.
- A money market account (sometimes called a money market deposit account) is a bank account. The FDIC lists money market deposit accounts as insured.
- A money market fund is a type of mutual fund you buy through a brokerage. The FDIC lists mutual funds as not insured, and the SEC notes that mutual funds are not guaranteed or insured by the FDIC or any other government agency.
If a product’s value can go up or down, or it is held at a brokerage, it is an investment, not a deposit account.
Are there withdrawal limits?
There used to be a federal limit of six convenient withdrawals or transfers per month from savings and money market accounts. The Federal Reserve removed that requirement in April 2020, but banks are still allowed to set their own limits. Check the account terms if you plan to move money often.
Which should you choose?
- Choose a high yield savings account if you want the highest rate and only move money occasionally. See our best high yield savings accounts.
- Choose a money market account if you want to write checks or use a debit card from your savings and the rate is competitive.
- Consider a bundle like Axos ONE or SoFi Checking and Savings if you want savings plus a checking account with ATM access in one place.
See the highest rates we verified, with minimums and fees, on our best high yield money market accounts page.
Frequently asked questions
Is a money market account better than a high yield savings account?
Not automatically. A money market account may offer checks or a debit card, but top high yield savings accounts often pay a higher rate. Compare the specific rates and features.
Are money market accounts FDIC insured?
Yes. Money market deposit accounts at FDIC insured banks are covered up to $250,000 per depositor, per bank, for each account ownership category. Money market funds are not FDIC insured.
Can I lose money in a money market account?
Not in a money market deposit account at an insured bank within the coverage limits. A money market fund is an investment and can lose value.
Do money market accounts have minimum balances?
Some do, either to open the account or to earn the best rate. Check the bank’s terms.
Compare today’s top savings rates
Happen Bank LevelUp SavingsAPY as of Oct 23, 20264.20%with $250 or more in deposits each monthReview →
