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Savings Accounts vs. Money Market Accounts vs our solution

When you want to stash away some of your money, it’s likely you’ll turn to the account options provided by local banks and credit unions. While it’s common to open a checking and savings account for easy access to your cash, it’s important to consider all of your options - including money market accounts (MMA). Below we’ll outline what your options are and the important considerations to make as you decide which is right for you as well as a custom solution we have built for our clients. 

What Is a Savings Account?

Just as it sounds, a savings account is a bank account specifically used for saving money. Because these accounts are designed to house money on a more medium or long-term basis, they typically offer a better interest rate than checking accounts. For many, a savings account is used to cover unexpected expenses such as a job loss or sudden home repair. In addition, savings accounts can be used to save for short-term goals, such as holiday expenses, upcoming vacations or house renovations.

To access the money in your savings account, you will typically need to visit a bank teller or utilize your online banking system. Savings accounts are not accessed through the use of checks or debit and ATM cards. Instead, it is common to link a savings account to a checking account, where these methods of withdrawal are easily used. In fact, Regulation D limits users from withdrawing money from their savings accounts to no more than six times per month.1 Attempting to withdrawal more than six times could result in penalty fees or account suspensions. 

What Is a Money Market Account?

Think of a money market account as a hybrid between a checking and savings account. It is designed for medium or long-term savings, but it offers easier access and withdrawal capabilities than a savings account would. When using an MMA, the bank actually invests the funds you deposit into the marketplace.

While MMAs are under the same regulation by the SEC in regards to withdrawal limits, most money market accounts can be accessed using checks or ATM cards. 

What’s the Difference Between a Savings and Money Market Account?

The biggest difference between these two types of accounts, aside from the ability to withdraw, is the interest rate. Generally speaking, MMAs will offer a higher interest rate than a savings account. In turn, however, many MMAs will require a minimum amount to open and remain in the account at all times.

What is the Generous Wealth Management Solution? 

Generous Wealth Management is proud to introduce you to the “CF Cash” program a cash management solution designed to enhance the return and provide more FDIC insurance protection on your cash balances, click here to sign up. CF Cash is a private label program that is established and administered by StoneCastle Network, LLC (“StoneCastle”) through its FICA® | For Advisors Program. StoneCastle and its affiliate are leading administrators of insured cash solutions for many of the world’s largest institutions. This program provides $25 million in FDIC coverage, full liquidity, and access to some the highest rates available, as of March 4, 2023 the program is 4.11% APY on the first million dollars deposited. 

StoneCastle is the program manager and administrator for CF Cash. StoneCastle and its affiliate have over 1,500 institutional clients utilizing their cash management solutions including Fortune 500 firms, public entities, foundations, endowments, hedge funds, private equity firms and insurance companies. StoneCastle is backed by the strength and stability of world class partners, CIBC and Charlesbank Capital Partners.

StoneCastle has the responsibility and discretionary authority for the selection of the program banks and the allocation of deposits into these banks, while ensuring each account’s deposits remain at or below the FDIC insurance limit per bank. Accounts are opened with StoneCastle’s program custodian bank. StoneCastle is not affiliated with Cantor Fitzgerald. CF Cash, LLC will receive a fee in connection with our introduction of this program to you, and such fee will reduce the yield that you may otherwise receive for your deposits in CF Cash.

Key Takeaways

While they’re similar in nature, there are a few key differences to consider as you decide which bank account type is right for you. While the higher interest rates of an MMA may be appealing, you want to be sure you’re able to make and keep the minimum required amount in the account. And if savings is your biggest concern, will the ability to access your money easily deter your efforts? If so, you may want to set aside what you have in a savings account instead.

As you look to accrue savings and interest, it’s important to weigh all of your options. Remember to consider the interest rates, minimum requirements and accessibility differences of your savings and MMA account options to find what works best for you and your savings goal.



  1. https://www.federalreserve.gov/boarddocs/supmanual/cch/int_depos.pdf




This content is developed from sources believed to be providing accurate information, and provided by Generous Wealth Management LLC. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.