Banks often offer both savings and money market accounts. And although the two are similar, understanding their differences can help you choose the one that best suits your goals.
Both money market and savings accounts are simple to open. And your deposits in both types of accounts are FDIC- insured to the maximum allowed by law at an FDIC-member bank like Ally Bank. Also, both money market and savings accounts are subject to limits on certain types of withdrawals per statement cycle. Finally, when compared to CDs, interest rates for savings and money market accounts are usually lower because these account types are variable rate and you are not committed to a fixed term as you typically are are with a CD account.
Money market account and savings account features vary. Generally, you can access a money market account through electronic fund transfers, checks, debit cards and ATM withdrawals. With savings accounts, your access is limited to electronic funds transfers or telephone withdrawals (and in-person withdrawals at traditional banks).
What You Get at Ally Bank
Whether you choose our Online Savings Account or Money Market Account, you don’t have to make a big deposit to get a great interest rate. Every Ally Bank customer gets rates that are consistently among the most competitive in the country, according to Bankrate.com. We also don’t charge you hidden fees that can chip away at your return. Plus, you can use any ATM nationwide with no fee from us; we’ll even reimburse the fees other banks nationwide charge to use their ATMs.
When you consider money market vs. savings accounts, your choice simply may be a question of how you need to access your funds. Moreover, there’s no rule saying you have to have only one or the other. Maybe the Money Market Account makes the most sense for your emergency fund while your Online Savings Account is for longer-term savings goals. It’s up to you.
Get all the information you need and open an account at Ally.com today or call live, 24/7 customer support at 877-247-ALLY (2559).