Difference between a money market account and a savings account???

Question

I notice discover offers a money market account at 3.14 apy

and HSBC offers a Savings account at 3.50 apy

And I used their interest calculator programs, and it showed that hsbc would earn you more interest in one year, so I want to know what is the difference between money market accounts and savigns accounts ??

Answer 1

Generally a Money Market account will offer higher interest rates than a savings, but requires a higher minimum balance. Of course every account differs from bank to bank. The best way to find out is to ask them what the differences are.

Answer 2

You might earn a little more with HSBC, but it might be at a little more risk.  Are the accounts FDIC insured?

Traditionally, money markets are thought to offer better interest rates, and are usually liquid.

Answer 3

I think money market accounts are like savings accounts, except that they come with minimum sum restrictions, and maybe some limits on what you can take out.

But be sure it's not a money market fund you're looking at. Those are risky. There's an article explaining the difference at http://www.hiddendangersrevealed.com/  (click on the "investments" link)