What’s Best for Me: Money Market or Traditional Savings Account
Which should you choose? A money market account or a traditional savings account? That’s a question many people ponder as they decide where to place their savings. The two accounts have much in common, but also important differences that can help you decide which makes the most sense for you.
The difference in interest rates between money market accounts and some savings accounts may not always be much, if anything. The Ally Money Market Account and Online Savings Account, for example, sometimes pay the same rate. Both also enjoy the protection of FDIC insurance, making them safe places to put your savings.
Money market accounts typically offer more flexible accessibility to your funds. Depending on the bank you choose, you may be able to make withdrawals by check, debit card, electronic transfer and by phone, subject to federal limits. This kind of flexibility can be very useful.
Savings accounts may offer fewer ways to make withdrawals—again, depending on the bank. The simplicity and familiarity of traditional savings accounts may be more attractive to you because that lower level of flexibility may also come with less temptation to make a spur-of-the-moment expenditure that can undercut your financial plans. And of course your cash is still readily available in a savings account when you really do need it.
Regardless of which choice makes the most sense for you, you can open, fund and earn a competitive rate of interest on any amount in either the Ally Bank Money Market Account or Online Savings Account. Learn more at Ally.com or call live, 24/7 customer service at 877-247-ALLY (2559).
Ally Bank, member FDIC