What’s the Difference Between a Savings Account and a Money Market Account?
When managing your finances, understanding the difference between a savings account and a money market account can help you decide on the best tool for your short or long-term goals.
Both are secure, interest-bearing accounts, but their features and requirements vary. And the differences between accounts can make a big impact.
Whether you're just getting started or rethinking your financial plan, this informational guide breaks down the key distinctions between these two account types to help you decide which best fits your financial needs.
What Is a Statement Savings Account?
A statement savings account is a basic, FDIC-insured account designed to help you store your money safely while earning interest. It’s ideal for building emergency funds, saving for specific goals, or simply creating a financial cushion. Hoyne’s Statement Savings account offers a solid foundation for new savers and experienced planners alike.
Key Features:
- Minimum Opening Balance: $100
- Minimum Balance to Earn Interest: $100
- Interest Rate Type: Variable rate, calculated using the daily balance method
- Monthly Maintenance Fee: $5.00 if the minimum balance isn’t met
- Transfer Limitations: No more than six (6) pre-authorized withdrawals or transfers per statement cycle
- Deposits insured by the FDIC
Hoyne’s statement savings account is flexible and easy to maintain. As long as your daily balance stays above $100, your money will earn interest. If it dips below $100, you’ll still retain access to your funds, but without interest accrual for that time period. The monthly maintenance fee will also be imposed. See terms and conditions for full details.
Open a Statement Savings Accounts.
What Is a Tiered Money Market Account?
A money market account (MMA) blends features of both savings and checking accounts. It typically offers a higher interest rate than a standard savings account and often includes limited check-writing or withdrawal capabilities. At Hoyne, our Tiered Money Market Account is designed for customers who want to earn more without sacrificing security.
Key Features:
- Minimum Opening Balance: $1,000
- Minimum Balance to Avoid Monthly Fee: $1,000
- Monthly Maintenance Fee: $10.00 if balance drops below $1,000
- Interest Rate Type: Tiered, variable rate (rate and APY may change at any time)
- Interest Calculation: Daily balance method
- Access: Up to six (6) preauthorized withdrawals or checks per statement cycle
- Minimum Withdrawal Amount: $100 (in person or by check)
- Deposits insured by the FDIC
The tiered structure means your interest rate may increase as your balance grows. This makes Hoyne’s money market account a perfect option for those maintaining higher balances and looking to maximize interest earnings while retaining limited access to their funds. See terms and conditions for full details.
Money Market vs. Savings: Which One Is Right for You?
Trying to determine which account would benefit you the most? Here’s how the accounts compare at a glance:
| Feature | Statement Savings Account | Money Market Account |
|---|---|---|
| Minimum Opening Balance | $100 | $1,000 |
| Minimum Balance to Earn APY | $100 | $1,000 |
| Monthly Fee | $5 (if balance < $100) | $10 (if balance < $1,000) |
| Interest Rate Type | Variable | Tiered Variable |
| Liquidity | Limited withdrawals | Limited withdrawals + check access |
| Ideal For | New savers, emergency funds | Higher balances, earning interest with flexibility |
If you're saving for an emergency or want a no-frills way to grow your money over time, a statement savings account offers simplicity and reliability. But if you want to earn more on larger balances and are confident you’ll maintain the minimum balance, then a money market account can offer better returns with added access.
Is a Money Market Account a Savings Account?
Yes, technically a money market account is considered a type of savings account under federal guidelines. However, it’s often treated differently because of its higher balance requirements, tiered interest rates, and the potential for limited check writing.
Think of it as a hybrid between a savings account and a checking account, providing interest like savings but with more access than typical savings accounts.
Hoyne is Here to Help
At Hoyne Savings Bank, we’re committed to helping individuals and small businesses in the Chicago area grow their savings with confidence.
Still deciding which account is the best fit? Many customers ask about the difference in interest rates, how often they can access their funds, and whether one account type is safer than the other. The good news is both options are secure, FDIC-insured, and designed to support your savings goals. If you need help evaluating your options or have specific questions, we’re here to help
