Money Market vs High-Yield Savings Comparison
Money market account (MMA) or high-yield savings account (HYSA) for your emergency fund? Compare APY, fees, check writing, FDIC limits, and net after-tax return. The right answer depends on balance size and access needs.
| MMA gross annual interest | — |
| MMA fees (annual) | — |
| MMA after tax | — |
| HYSA gross annual interest | — |
| HYSA after tax | — |
Money market accounts (MMA) and high-yield savings accounts (HYSA) are nearly identical — both are FDIC-insured deposit accounts paying competitive yields. The differences are subtle: MMAs often allow limited check-writing and debit access; HYSAs are simpler online-only accounts. Choose based on whether you need check access plus the better headline APY after fees.
Key Differences
Money market account: typically allows 6 check-writes/month (pre-Reg D 2020 limit), may have monthly fee below minimum balance, may have a debit card. HYSA: pure savings, transfer to checking required to spend, typically no fees. Both FDIC-insured up to $250K per depositor per bank.
After-Tax Return
Interest from both is taxed as ordinary income (your marginal rate). A 5% APY at 24% marginal tax is a 3.8% after-tax return. Use this to compare against tax-advantaged alternatives like I bonds (tax-deferred until redemption, state-tax-free) or Treasury bills (state-tax-free).
Brokered MMAs and Beyond $250K
Above $250K per depositor per bank, you exceed FDIC coverage. Options: (1) split across multiple banks, (2) brokered MMAs at Schwab/Fidelity/Vanguard that spread balance across many partner banks, or (3) shift to Treasury bills (held in TreasuryDirect or brokerage account) for federal-government-backed protection beyond FDIC.
Last updated May 2026. Sources: FDIC Insurance, Federal Reserve Reg D.