HYSA vs Money Market: What's the Difference?
Both high-yield savings accounts and money market accounts are safe, FDIC-insured places to park your cash. But they work differently. Here's how to decide which one is right for you.
What Is a Money Market Account?
A money market account (MMA) is a hybrid between a checking account and a savings account. It earns interest like a savings account but offers some of the transactional features of checking, including check-writing and debit card access.
Key Features
- ●Check-writing privileges for direct payments
- ●Debit card access at many banks
- ●Tiered interest rates based on balance
- ●Higher minimum balance requirements
Good to Know
- ●FDIC insured up to $250,000 per depositor
- ●Not the same as a money market mutual fund
- ●May charge fees if balance drops below minimum
- ●Available at most banks and credit unions
Side-by-Side Comparison
| Feature | HYSA | Money Market |
|---|---|---|
| Access | Online transfers, 6/mo limit | Checks, debit card, transfers |
| Rates | Often higher | Competitive, sometimes tiered |
| Minimums | Usually $0–$1 | Often $1,000–$2,500 |
| Fees | Usually $0 | May have fees below minimum |
| FDIC | Yes ($250K) | Yes ($250K) |
| Best For | Pure savings | Savings + occasional access |
When to Choose a HYSA
A high-yield savings account is the better pick when you want to maximize your interest earnings and don't need transactional access to your savings.
- ●You want to maximize your APY above all else
- ●You don't need check-writing or debit card access
- ●You want the simplest possible savings option
- ●You already have a separate checking account for daily spending
When to Choose a Money Market Account
A money market account makes more sense when you want the earning power of a savings account combined with the flexibility to spend directly from the account.
- ●You want check-writing ability for occasional large payments
- ●You need occasional direct access via debit card
- ●You're comfortable with higher minimum balance requirements
- ●You want one account that handles both saving and occasional spending
Key Similarities
Despite their differences, HYSAs and money market accounts share several important traits that make both solid choices for your savings.
- ●Both are FDIC insured up to $250,000 per depositor, per bank
- ●Both earn compound interest on your deposits
- ●Both are considered safe, low-risk places to keep cash
- ●Both offer significantly higher rates than traditional savings accounts
The Bottom Line
If you want the absolute highest APY and don't need check-writing or debit card access, go with a high-yield savings account. Online HYSAs consistently offer top-tier rates with no fees and no minimums.
If you want the flexibility to write checks or use a debit card directly from your savings, a money market account is the better fit. You'll still earn a competitive rate while gaining transactional features that a HYSA can't match.
Either way, both account types are FDIC insured, earn compound interest, and dramatically outperform the 0.01% APY you'd get from a traditional savings account. The best choice depends on how you plan to use the account.
Frequently Asked Questions
What’s the difference between a HYSA and money market account?
A high-yield savings account (HYSA) is a pure savings vehicle with online transfers and typically higher APYs. A money market account is a hybrid that combines savings with checking-like features such as check-writing and debit card access, but often requires higher minimum balances.
Which has higher rates: HYSA or money market?
HYSAs tend to offer slightly higher APYs because online banks have lower overhead costs. Money market accounts can be competitive, especially at higher balances with tiered rate structures, but the top rates usually belong to online HYSAs.
Is a money market account FDIC insured?
Yes. Money market accounts at FDIC-member banks are insured up to $250,000 per depositor, per institution—the same coverage as high-yield savings accounts. Do not confuse money market accounts with money market mutual funds, which are not FDIC insured.
Can I write checks from a HYSA?
No. High-yield savings accounts do not come with check-writing privileges. If you need the ability to write checks from your savings, a money market account is the better choice.