Is a Money Market a Savings or Checking Account?

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Money market accounts often spark some confusion. Are they checking accounts, savings accounts, or something else entirely? The answer isn’t straightforward, but that’s what makes them such a great option—they can fit into any financial situation. Keep reading while we compare money market accounts with savings and checking accounts. By the end, you will know if money markets are the right choice for you!

What Are Money Market Accounts?

Money market accounts are deposit accounts that blend features of both savings and checking accounts. They generally offer tiered interest rates based on your account balance, and they also include check-writing and debit card access. These features make money markets a convenient option for savers who occasionally want to withdraw their funds.

To explore money market accounts in more detail, read Money Market Accounts and How They Work and Benefits of Money Market Accounts.

Savings Accounts vs. Checking Accounts: How Money Market Accounts Measure Up

As mentioned, money market accounts walk the middle ground between traditional savings and checking accounts. Here's how they resemble each:

How Mony Markets are Similar to Savings Accounts

Better Interest Rates: Money market accounts resemble traditional savings accounts by offering higher interest rates. These accounts often feature tiered rates, which means the money market rates rise as your balance grows. This helps your savings accumulate more quickly.
Account Balance Requirements: Much like a savings account, a money market account typically asks you to maintain a minimum balance for avoiding fees and unlocking the best money market interest rates.
Withdrawal Restrictions: Banks often limit money market withdrawals (such as checks or transfers) to six per month. Exceed that limit, and you could face penalties and fees.
Promotes Saving: With their limited transaction requirements, money markets are designed to encourage saving money instead of spending money.
Overdraft Protection Options: Depending on the bank, a money market deposit account can serve as a backup for overdrafts when linked to your checking account.

How Money Markets are Similar to Checking Accounts

Check-Writing Privileges: Checking accounts get their name because they let you write checks. Similarly, you can write checks from a money market account.
Debit Card Use: A number of money market accounts offer debit cards for purchases and other transactions. This allows you to easily access your funds without needing to visit the nearby bank.
Mobile and Online Banking: Like checking accounts, money markets let you manage your money through mobile banking apps or online platforms.

So, is a Money Market Account Savings or Checking?

In short, they are a blend of both, but they mostly function like savings. And while they offer flexibility like checking accounts, their purpose is to help you grow savings with competitive interest rates.

Here are some situations where a money market account might be a great fit:

You want higher returns on your savings
You need your money to be readily available
You typically maintain larger balances
You want occasional transaction flexibility

Choose Money Market Accounts from Armed Forces Bank

Money markets provide a blend of earning interest while keeping your funds within reach. Whether you are saving for unexpected expenses or looking for a practical way to grow your savings, a money market account might be the solution for you.

With a long-standing commitment to serving our clients, Armed Forces Bank offers money market accounts tailored to your financial goals. Here are the highlights:

High Interest Rates: Enjoy some of the best money market rates around, growing your savings faster.
Easy Access: Write checks, use your debit card, or withdraw your money whenever you need it.
Something for Everyone: We provide personal and business money market accounts, along with tailored options for retirement savings and homeowners associations (HOAs).
Overdraft Protection: Connect your money market account to your checking account for added security and avoid unexpected overdrafts.
FDIC Insurance: Your funds are protected up to the maximum legal limit, giving you peace of mind.
Online Banking & Account Alerts: Manage your money effortlessly with our user-friendly digital platform. Plus, receive instant account alerts to stay on top of your finances.

Ready to take the next step? At Armed Forces Bank, we’re here to guide you throughout your financial journey. Explore our selection of money market accounts today: Personal Money Market¹, Money Market IRA², Business Money Market³, HOA Money Market.

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¹ Minimum $25 deposit to open the Premier Money Market Account. A monthly service charge of $10 will be imposed every month or statement period if the balance in the account falls below $1,000 on any day of the month or statement period. Six (6) transactions per statement allowed. Excessive withdrawal fee of $10 per item over 6 withdrawals per statement cycle. Free eStatements or $5 paper statement monthly fee. Closing your account within 90 days of opening will result in a $25 early closure fee.

² A minimum deposit of $25 is required to open a Premier Money Market IRA account. Debit cards, ATM cards, or checks are not available because IRS regulations require withdrawals to be properly coded for IRS reporting requirements. A minimum balance fee of $10 will be imposed every month or statement period if the balance in the account falls below $1,000 on any day of the month or statement period. You will have view or inquiry only access to Digital Banking. An account statement will be provided monthly. You are limited per the IRS regulation regarding contributions based on age, income, and other factors. Early or premature withdrawals from an IRA may be subject to a 10% early withdrawal tax from the IRS. Closing your account within 90 days of opening will result in a $25 early closure fee.

³ Minimum $25 deposit to open the account. A minimum balance fee of $10 will be imposed every month or statement period if the balance in the account falls below $1,000 on any day of the month or statement period. Free monthly eStatement or $5 paper statement. Excessive withdrawal fee of $10 per item over 6 withdrawals per statement cycle. Closing new accounts within 90 days of opening will result in a $25 early closure fee.