1Where they are the same
Both are deposits at a bank or credit union, insured up to $250,000, with variable rates.
2Where they differ
Money market accounts may let you write checks or use a card, and some need a higher minimum balance to get the best rate.
3The fund trap
A money market fund has a nearly identical name but is an investment. It aims to keep a steady value, but it is not guaranteed or insured.
4Which to pick
Compare APY, fees and minimums. If you rarely spend from it, a high-yield savings account is usually simpler.
How to do it in Oaktally
Whichever account you pick, Oaktally keeps its balance and your savings goal in one place.
- Add the accountAdd the savings or money market account with its balance.
- Give it a goalIn Plan, add a goal and choose Target date.
- Add money each paydayThe ring shows how far along you are.
Frequently asked questions
Is a money market account FDIC-insured?
Yes, a money market deposit account at an FDIC-insured bank is covered up to $250,000.
Is a money market fund safe?
It is low risk, but it is an investment and can lose value. SIPC covers broker failure, not losses.
Further reading
FDIC: Financial products that are insured ↗SIPC: What SIPC protects ↗Educational examples, not individual financial advice.
