When it comes to saving, where you keep your money matters. Two popular savings account options are traditional savings accounts and money market accounts, which can help you grow your funds. Still, they are traditionally used for different purposes due to their different features.

The key distinguishing factors help you decide which one fits your financial goals best.

Savings Account: What it is and why choose it? 

A savings account is one of the simplest ways to store your money while earning a bit of interest.

  • Easy to Open & Maintain: Many banks allow you to start with as little as $50.
  • Great for Short-Term Goals: Whether you’re building an emergency fund or saving for a vacation, a savings account keeps your money accessible while earning interest.
  • Limited Withdrawals: Like MMAs, savings accounts often limit the number of transactions and may charge a fee for exceeding that limit.

Money Market Account (MMA): What it is and why choose it?

MMAs have nothing to do with stock trading or investing, but are a type of deposit account offered by banks and credit unions that combine features of both savings and checking accounts.

Unlike traditional savings accounts, MMAs often come with check-writing privileges or debit card access, making it easier to use your money when needed.

  • Higher Interest Rates: MMAs typically offer better interest rates than standard savings accounts, helping your balance grow faster.
  • Access to Funds: Some allow check-writing and ATM cards, making them more convenient than traditional savings accounts.
  • Larger Minimum Deposits: Many banks require a higher minimum deposit to open and maintain an MMA, so they’re often best suited for long-term savings goals.

Which account is a better strategy for your savings?

Choosing between a money market account and a traditional savings account depends on your financial needs, goals and how much access you’ll want to your money. Ask yourself the following questions:

  • How much money do I have to open an account? Because money market accounts usually have larger deposit minimums, you may be better off with a savings account if you only have a relatively small amount of money available to get started.
  • What are my goals? Money market accounts are best for goals that are medium- to long-term. If you’re saving for a goal that you expect to accomplish in two to five years — such as buying a home or car — a money market account can make sense. For short-term goals, such as building an emergency fund or for a vacation, a savings account may be a better fit.

Visit your local Southeast Bank branch for experienced assistance to learn more about our particular account options and get started. Your financial journey starts with SouthEast Bank.

Olivia Johnson is the marketing strategist for Southeast Bank.

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