The Best Money Market Accounts in 2023 

When it comes to saving and growing your money, making the right choice between money market accounts (MMAs) and savings accounts is crucial. These two popular options offer different features, benefits, and considerations that can greatly impact your financial journey. 

Whether you’re seeking higher returns or easy access to your funds, it’s important to explore and compare interest rates, liquidity, eligibility criteria, and more. 

1. Sallie Mae Bank

If you’ve ever taken out a student loan, chances are you’ve heard of Sallie Mae. But did you know it also offers competitive money market accounts through Sallie Mae Bank? It doesn’t require you to deposit a minimum amount of money to get started, making it ideal for beginners.

As of May 2023, it offers an APY (annual percentage yield) of 4.15% with no monthly maintenance fees to worry about. Plus, you can access your money at any time and write checks as needed.

2. Ally

Ally Bank offers a similar kind of MMA – between 4.00% and 4.15% APY with no minimum balance to open an account. One of the perks of Ally is its extensive fee-free ATM network. With an Ally MMA, you can withdraw cash from any AllPoint ATM for $0. You could even get reimbursed $10 every month for out-of-network withdrawals.

3. Vio Bank

You’ll need at least $100 to open an MMA from Vio Bank, but you could be earning up to 4.85% APY – one of the highest rates on our list. With Vio, you can open an account online and set up automatic transfers to start growing your money. It also boasts no monthly maintenance fees and up to six free withdrawals per statement cycle.

4. Zions Bank

Zions Bank is a great option for anyone looking to get started quickly. It claims to have a 5-minute application process and has current rates of up to 4.86% APY. The bank is FDIC insured, so your money is protected up to $250,000. Plus, you can access your money at any time with no monthly fees.

What is the Difference Between a Money Market & Savings Account?

An MMA is an interest-bearing deposit account offered by financial institutions, such as banks or credit unions. It combines features of both savings accounts and checking accounts. MMAs typically offer higher interest rates compared to regular savings accounts but still provide some level of liquidity and accessibility.

A savings account, on the other hand, is a basic deposit account designed to hold and grow your money while earning interest. Savings accounts offer a safe place to accumulate funds, with varying interest rates depending on the financial institution and account type.

When to Consider MMAs or Savings Accounts

The choice between an MMA and a savings account depends on your financial goals, liquidity needs, and the specific terms and rates the financial institution offers. Consider your financial objectives and the intended purpose of the account. MMAs are often used for short-term savings or emergency funds, while savings accounts can serve various saving objectives.

Additionally, explore any additional features that may be offered with the account. The following features can enhance your overall banking experience:

• Online banking 
• Mobile apps 
• Customer support 
• Access to investment options 

In general, MMAs may be more suitable if you want a higher interest rate than traditional savings accounts offer while maintaining some degree of access to your funds. MMAs can be a good option if you have a larger sum of money you want to save while still having the flexibility to make occasional withdrawals.

Savings accounts are ideal if you are looking for a safe and convenient way to accumulate funds over time. They may be more suitable for short-term savings goals, emergency funds, or funds earmarked for specific purposes, such as vacations or down payments.

Who Can Open & Maintain Each Type of Account?

Both MMAs and savings accounts are generally available to individuals, including adults, students, and even minors, with the appropriate identification and documentation. The specific eligibility criteria and account opening requirements may vary depending on the financial institution.

Check the eligibility requirements for opening an MMA or savings account at your bank. Some accounts may have specific criteria or limitations. For instance, MMAs tend to have higher minimum balance requirements. 

Similarly, MMAs may limit the number of transactions or withdrawals you can make monthly. Ensure that these limits align with your financial needs. Consider any associated fees for exceeding withdrawal limits or falling below minimum balance requirements.

Savings accounts, on the other hand, typically provide easier access to funds and are suitable if you prioritize liquidity and frequent withdrawals. Also, consider the accessibility of the financial institution, including the availability of branches or ATMs in your area.

Which Account is Best for Saving Money?

To determine which account is best for saving money, consider the following factors:

• Interest rate
• Withdrawal flexibility
• Minimum balance requirements
• Associated fees

It’s essential to compare different financial institutions and account options to find the one that aligns with your saving preferences and financial objectives.

Which Account is Best for Your Risk Tolerance?

Evaluate your risk tolerance. MMAs may carry slightly more risk than savings accounts, as they often invest in short-term securities. Determine your comfort level with potential fluctuations in interest rates or market conditions.

MMAs and savings accounts are typically covered by FDIC or NCUA insurance, depending on the type of financial institution offering the account. The FDIC and NCUA provide deposit insurance coverage up to $250,000 per depositor, per insured bank. If the bank holding your MMA or savings account fails, your funds will be protected up to the coverage limit.

It’s important to note that the coverage limits apply to the total combined deposits you have within each institution, including all accounts held in your name at that particular institution. If your deposits exceed the coverage limits, it’s advisable to spread your funds across multiple insured institutions to ensure full coverage.

When choosing an MMA or savings account, it’s always a good idea to confirm that the financial institution is FDIC-insured or NCUA-insured to ensure that your deposits are protected by deposit insurance.