Money Market Accounts vs Savings Accounts — Rates, Features, and Which Is Right for You
If you have cash sitting in a traditional savings account earning 0.25% or less, you are effectively losing purchasing power to inflation every single month. With the Federal Reserve having cut its benchmark rate to 3.64% as of January 2026 — down from 4.33% earlier in the tightening cycle — the window to lock in competitive yields on cash deposits is narrowing. Yet even in this declining-rate environment, money market accounts and high-yield savings accounts still offer returns well above 4%, making the choice of where to park your cash more consequential than ever. Money market accounts (MMAs) occupy a unique middle ground in the savings landscape. They combine the safety of FDIC insurance with features typically associated with checking accounts, such as check-writing privileges and debit card access. But how do they stack up against high-yield savings accounts, which often advertise even higher APYs? And what about money market mutual funds — a completely different product that shares a confusingly similar name? This guide breaks down the key differences between money market accounts and savings accounts, compares current rates across account types, and helps you determine which option best fits your financial situation in the current rate environment.