Is a Money Market Account, a Savings Account?

A money market account is basically not much different than a bank’s traditional savings account. The money market account usually draws a much higher interest rate than the traditional savings account does, but they also require a much higher initial deposit than the traditional versions. A money market account is generally designed for leaving your money in it for a longer time period, and is less liquid than the traditional version. This is mainly due to the fact that the high rates of interest that are paid by money market accounts lures people into leaving their money in place for longer periods of time so they can make more money, while traditional versions pay such a small amount of interest that there is no real incentive to leaving your money in the bank. Money market accounts have very strict limits on the withdrawals you can make. The Federal

Deposit insurance Corporation guarantees both your money market accounts and traditional versions for up to $250,000 dollars. Money market accounts are not meant to be ones where you do a high number of transactions, they are actually meant for the person who has a larger sum of money they want to save, and to allow to grow interest. The traditional type is meant for the individual who may need to make several deposits and withdrawals within a quarter. You do not have to have as much money to open one and your minimum balance will be lower than in a money market. With the traditional version if you need to take out some cash to pay a bill you are more likely to be able to do so without incurring a large fine. It does not really matter what type of saving you want to do, the important thing is you are about to start putting a little something aside, and teach yourself some new skills, and new ways to handle your finances. Each one of us needs to learn to keep some of what we earn today to help us in our future, when we can all accomplish this we will be able to balance our nations budget, and our own as well.