High Yield Savings Accounts vs. Money Market Accounts: Which May Be Best for You?

December, 2025

Saving money is important if you’d like to meet a variety of short- and long-term financial goals. Whether you hope to cover an emergency expense, renovate your home, buy a new car, go on a dream vacation, or do anything in between, you might be wondering where to keep and build your savings securely.

High Yield Savings accounts and Money Market accounts are two options you might consider. The right account for you, however, depends on your unique savings goals, needs, and preferences. Let’s dive deeper into how a High Yield Savings account compares to a Money Market account so you can make a well-informed decision for your particular situation.

Key highlights:

High Yield Savings accounts (HYSAs) are savings accounts – often offered online – that provide competitive interest rates. Money Market accounts (MMAs) may offer additional access features such as bank branches, ATMs, or check-writing privileges, depending on the institution.
HYSAs typically have no or low minimum balance requirements and may carry lower or no fees. MMAs often require higher minimum balances, may charge fees if balances fall below set thresholds, and rates can vary based on balance tiers.
HYSAs are generally suited for savers seeking longer-term savings with competitive rates and who manage funds primarily online, while MMAs may be a better fit for those who want flexibility and multiple ways to access their money.

What is a High Yield Savings account (HYSA)?

A High Yield Savings account (HYSA) is a deposit account that typically offers a higher Annual Percentage Yield (APY) than a traditional savings account. These accounts are generally easy to open and are most often managed through Online or Mobile banking, allowing customers to transfer funds in and out as needed, subject to the institution’s policies.

What is a Money Market account (MMA)?

A Money Market account (MMA) is another type of deposit account that’s essentially a blend between a savings account and a checking account. MMAs often provide competitive interest rates that may vary by balance tiers. In addition to online and mobile access, some accounts may also allow access through bank branches, ATMs, or check-writing privileges, offering multiple ways to manage funds. Features and requirements vary by provider, and MMAs typically require maintaining a minimum in your account in order to earn a more desirable APY.

Key differences between High Yield Savings and Money Market accounts

While HYSAs and MMAs are both powerful savings vehicles offering competitive rates, they’re not created equal. There are several noteworthy differences between the two products – here’s a closer look at how HYSAs and MMAs differ.

	High Yield Savings accounts (HYSAs)	Money Market accounts (MMAs)
Interest rates	May offer competitive rates with little or no balance requirement (rates are variable and subject to change)	May offer competitive rates that often vary by balance tier (rates are variable and subject to change)
Accessibility	Often accessed through Online and Mobile banking and using digital tools such as ACH or wire transfers	In addition to online and mobile access, may also include access through bank branches, ATMs, or check-writing privileges
Fees	Often no or low monthly fees (varies by institution)	May require maintaining a balance to avoid monthly fees (varies by institution)
Account requirements	Many have no or low minimum balance requirements¹	Typically require higher minimum balances, ranging from a few hundred to a few thousand dollars
Safety	Federally insured by the FDIC or NCUA up to applicable limits (generally $250,000 per depositor, per institution, per ownership category)¹	Same as HYSAs

Interest rates and earnings potential

Compared to traditional savings accounts, MMAs may offer competitive rates², particularly for larger balances and often require meeting minimum balance requirements to qualify for the most favorable rates.

HYSAs are also commonly associated with competitive rates, often available regardless of balance size. Depending on the institution, HYSAs can sometimes deliver more consistent earnings without requiring a high minimum balance.

Important: Both MMAs and HYSAs are typically variable-rate accounts, and rates are subject to change at any time without notice.

Accessibility and liquidity

Many Money Market accounts come with checking account features like bank branches access, ATMs, and check-writing privileges, often making it easier to access these funds.³This is a huge plus for savers who need to pull money out of their accounts on a regular basis.

On the flip side, HYSAs are often accessed primarily through Online and Mobile banking utilizing transfers to move funds in and out of the account. As a result, those who plan to keep their money in the account without touching it often will likely benefit more from a HYSA.

Fees and minimum balance requirements

In most cases, you can open a HYSA without worrying about a minimum balance requirement to access the featured rate or waive a monthly fee, but this depends on the institution’s fee policies.

With an MMA, however, your account balance may influence what rate you receive on your savings. Plus, you may be charged a monthly fee if your balance falls below a certain amount.

Security and safety

When you open a savings account, security should be of utmost importance. Fortunately, both HYSAs and MMAs are usually insured against bank failure. If your account is through a bank, your deposits will typically be insured by the FDIC up to the applicable limits (generally $250,000 per depositor, per insured institution, per account ownership category). If your account is with a credit union instead of a bank, the National Credit Union Administration (NCUA) will protect your deposits following set policies.

When to choose a High Yield Savings account

HYSAs may be the right option if any of these situations apply to you:

Your goal is to earn as much interest as possible: Since HYSAs often provide competitive rates, they may be worth exploring if you’d like to grow your savings over time. Rates vary by institution and may change at any time.
You don’t plan to pull money out of your account often: HYSAs are generally accessed through online transfers, while MMAs — when linked to a checking account at the same institution — may also provide additional access options such as debit cards or checks. If you don’t expect to use your funds regularly, a HYSA may be a good fit.
You are starting your savings journey: With HYSAs, you can expect competitive rates, regardless of account balance, so you can grow your savings, even with a lower balance. Additionally, if you are far along on your saving journey and you just want your money to grow faster, HASAs would be a great fit.

When to choose a Money Market account

You may benefit from MMAs if:

Your goal is to earn competitive interest: MMAs often provide higher rates than traditional savings accounts. An MMA may be a good fit if you want more frequent access to your funds while still earning a competitive return.
You prefer traditional account access: Depending on the institution, features such as branch availability and check-writing may be offered with MMAs, which can provide multiple ways to manage your funds.
You have a larger balance: MMAs may be a good choice if you can maintain higher balances, as some institutions may offer competitive rates for larger deposits.

How to decide between a High Yield Savings account and a Money Market account

Here are some tips to keep in mind before you go ahead and open a HYSA or MMA:

Assess your savings goals

Think about your specific savings goals. For example, if you’re saving for a long-term goal, such as a down payment on a house, a HYSA can potentially help you reach it faster, as long as you secure a competitive APY. However, if you have a shorter-term need, an MMA may come in handy.

Evaluate accessibility needs

Ask yourself how often you’ll access your funds. If you believe you’ll need to withdraw cash from your account on a regular basis, an MMA makes sense. However, if you know you won’t touch your money for a while, a HYSA is likely the better move.

Compare account options and features

Shop around and explore HYSAs and MMAs from various banks and other financial institutions. As you do so, compare interest rates, fees, and account benefits. This can help you weigh your options and make the best decision for your individual needs, lifestyle, and savings goals.

Get a High Yield Savings account today

If you determine that a HYSA is ideal for your unique situation, Openbank by Santander can be a good fit. With Openbank, you can access competitive rates, no monthly fees, 24/7 digital access, and FDIC insurance up to applicable limits. Rates and terms are subject to change. Learn more about the features of the Openbank High Yield Savings account and apply for an account today. Openbank is a division of Santander Bank, N.A. Member FDIC.⁴

Sources:

¹Kiplinger – Money Market Account vs. High-Yield Savings Account. Accessed October 10, 2025
²CNBC – Money market account vs. High-yield savings account: What’s the difference and which one should you choose? Accessed October 10, 2025
³ Investopedia – Money Market Account: How It Works and How It Differs From Other Bank Accounts. Accessed October 10, 2025
⁴Deposits at Santander Bank and its Openbank division are combined for FDIC insurance purposes (FDIC Cert. 29950) and are not separately insured.

This content is for informational purposes only and does not constitute financial, legal, or investment advice. Please consult Openbank’s website or speak to a representative for the most up-to-date information.