Categories: MONEY

Money Market vs Savings Account (Which Is Best For You & Why)


Regular savings accounts work differently, especially when comparing traditional banks to online options. Most traditional brick-and-mortar banks offer minimal interest rates between 0.01% and 0.5% on standard savings accounts.

However, high-yield savings accounts (HYSAs) from online banks like Ally Bank have changed the game, frequently offering rates around 4.05% or higher. These rates can be either fixed or variable, depending on your chosen institution. 

Even with smaller balances, HYSAs provide steady, reliable growth without demanding high minimum deposits. This accessibility makes them an excellent choice for most people looking to grow their savings without complexity.

Wondering how much you should be putting into these accounts? Our guide, How Much Should You Save Per Month, breaks down exactly how to calculate your ideal monthly savings based on your income, lifestyle, and financial goals. You’ll learn the 50/30/20 budgeting method and get specific savings targets for different areas of your life.





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