What is the difference between a savings account and a money market account?

Both are FDIC-insured deposit accounts that earn interest, but money market accounts typically offer higher APYs in exchange for higher minimum balance requirements and may include check-writing or debit access. Savings accounts are simpler with lower or no minimums.

What they share

Savings accounts and money market accounts (MMAs, also called money market deposit accounts) are both deposit products held at FDIC-insured banks or NCUA-insured credit unions. Both pay interest, both are liquid (no required lock-up period), and both are federally insured up to $250,000 per depositor per institution. The FDIC's deposit insurance guidance lists both as covered deposit accounts.

Key differences

APY / interest rate. Money market accounts generally pay a higher APY than standard savings accounts, though high-yield savings accounts from online banks can match or exceed traditional MMA rates. Compare APY directly, not product type.
Minimum balance. MMAs typically require a higher minimum balance — sometimes $1,000–$10,000 — to earn the advertised APY or avoid fees. Many savings accounts have no minimum.
Check writing and debit access. Some money market accounts come with a checkbook or debit card, making them more flexible for occasional larger payments. Traditional savings accounts generally do not offer check writing.
Transaction limits. Historically, both account types were subject to Federal Reserve Regulation D's six-per-month limit on convenient transfers. The Fed removed the mandatory cap in 2020, but individual banks may still impose their own limits.
Purpose. Savings accounts are typically for simple accumulation (emergency fund, short-term goals). MMAs suit savers who want slightly more access to larger cash balances while still earning competitive interest.

Which fits which situation

For most people building an emergency fund or saving toward a short-term goal, a high-yield savings account with no minimum is simpler. A money market account may make sense if you maintain a larger balance, want the occasional ability to write a check directly from the account, or your institution's MMA happens to offer the highest available APY. In either case, the CFPB recommends comparing APY, fees, and minimum balance requirements before opening.

By the numbers

Money market deposit accounts are FDIC-insured up to $250,000 per depositor, per insured bank, per ownership category — the same coverage as savings accounts. — FDIC
The CFPB defines a money market account as a deposit account that usually pays a higher rate of interest and requires a higher minimum balance than other savings options, and may allow limited check writing. — CFPB — What is a money market account?
The FDIC publishes monthly national average rates for both savings accounts and money market accounts, allowing direct APY comparisons between product types. — FDIC — National Rates and Rate Caps

Key takeaways

Both savings and money market accounts are FDIC-insured, liquid, and interest-bearing — the core difference is rate, minimums, and access.
Money market accounts often require a higher minimum balance but may offer check-writing access and higher APY at traditional banks.
High-yield savings accounts from online banks can match or beat MMA rates with lower minimums — compare APY, not product names.
Use the CFPB's guidance to compare APY, fees, and minimum requirements for the specific accounts you're evaluating.