Difference Between High Yield Savings And Money Market

Nowadays, every user follows the financial market to a greater or lesser extent. Financial literacy allows you to manage your money correctly, providing yourself and your family with everything they need.

Today, loans from public and private entities are quite popular. It allows the average user to solve many problems:

make a major purchase (car, real estate, large appliances, etc.);
go on a trip;
pay for expensive medical treatment;
make major repairs, and so on.

The user only needs a steady income and a clean financial history to get the loan.

High-yield Savings & Money Market Accounts

Most people do not limit their financial activities to just paying off loans. It is recommended to have high-yielding savings and money market accounts to stand on your two feet confidently.

Everyone has their own savings goals:

sustainable financial position;
increased freedom of action;
creation of a certain financial reserve for unforeseen events;
thinking about subsequent spending (children’s education, future provision, etc.);
participation in financial transactions;
providing children with inheritance and others.

A high-yield savings account allows you to get many times the average savings account rate.

Although we are discussing this account, we are discussing banks with high-interest rates.

It is a relatively “new” account category created due to the high competition between financial institutions.

Online banks often offer it, as well as traditional banks that work by opening an online account.

Electronic transfers between this account and your current account can be easily set up for convenience. It is possible even if they are opened at different institutions.

There may be minimum requirements for opening an account: the initial deposit amount, interest rates, the amount of the required minimum balance, and any possible fees. All terms and conditions should be considered in advance.

A money market account is a bank interest-bearing account or credit union. It is a form of money-saving deposit account offered by financial institutions.

If the money market account is replenished, the user can expect an increase in interest.

By the way, the interest rate of this account category is higher than in regular savings accounts. At the same time, the customer can use both a debit card and write a check.

Before opening one of the accounts, you should carefully familiarize yourself with the bank’s history and credit union. It will not be superfluous to read real user reviews.

The more information the institution provides, the more open its conditions are. You can choose the most reliable option from the list, offering the best rates and other options.

It is worth noting that some banks can set restrictions on withdrawals and transfers.

How To Make A Choice

Investing in your well-being will not be difficult with a reliable assistant. It is not necessary to receive special education to understand financial operations.

Using high technology, you will easily achieve success. The main thing is to set your priorities correctly.

The special PocketGuard application is designed for saving purposes. The service provides all the necessary tools to set financial goals correctly.

How to use the program? The SMART structure was created for setting and achieving specific goals:

S – Specific. You create a goal and prioritize it. Emoji will be a faithful assistant.

M – measurable. The goal is maximally concretized. It would be best to understand what amount you plan to get in the end.

A – achievable. The PocketGuard application will automatically calculate the monthly installment. It will bring you closer to decisive actions.

R – relevant. A clear analysis of income and expenses is provided. It will help determine the relevance of your goal.

T – time-limited. In addition to the target amount, an end date is provided.

You should simply set the monthly installment amount and the end date of the target solution.

PocketGuard will correctly track the progress of the savings. If the set limits are exceeded, the user will be notified immediately.

The intelligent algorithm will easily track the target’s progress. The user will be notified about all changes: off-schedule activities, completion of goals, or failure to meet them. It will become much easier to control financial transactions.

Here is an example of a bad and good, SMART financial goal statement:

BAD: I want a cool new electric car.

GOOD: Buy a new Tesla Model S costing up to $35,000 in the first half of 2024.

Note, however, that buying a car is a liability purchase. An apartment, a newer iPhone, furniture, and appliances are also passive because they will not bring you income.

Over time, they will only get cheaper and require maintenance costs. Perhaps it is better to buy assets instead of passives: securities, cryptocurrency, gold bars, an apartment for rent, so that they bring profit.

When the financial goal is set, you should understand how to achieve it.

It is recommended to consistently: