As of August 2025, savers are benefiting from historically high Annual Percentage Yields (APYs) on deposit accounts. The Federal Reserve’s benchmark rate, currently at its highest target range since 2007, has driven competitive rates for both high-yield savings accounts (HYSAs) and money market accounts (MMAs). This article compares these two popular options to help you decide where to best grow your savings.
Key Takeaways
- Money market accounts and high-yield savings accounts offer very similar top APYs, with only a slight difference in potential earnings.
- Money market accounts often provide additional features like check-writing and debit card access, which are typically absent in standard savings accounts.
- Certificates of Deposit (CDs) offer a fixed APY for a set term, providing predictability but limiting access to funds.
Comparing Earnings: HYSA vs. MMA
When comparing the best available rates, a high-yield savings account might offer around 4.35% APY, while the top money market accounts are slightly higher at 4.40% APY. For a $10,000 deposit over one year, this difference translates to approximately $435 in interest for an HYSA versus $440 for an MMA. While the earnings are nearly identical, the choice between them may depend on other account features.
It’s important to remember that these rates are variable and can change based on Federal Reserve actions or a bank’s need for deposits.
Account Features to Consider
Beyond the APY, several other factors can influence your decision:
- Check-Writing and Debit Card Capabilities: Money market accounts often come with the convenience of check-writing and a debit card, though transaction limits may apply. Traditional savings accounts typically lack these features.
- Monthly Fees: To maximize your earnings, look for accounts with no monthly fees. Some accounts may waive fees if a minimum balance is maintained.
- Minimum Deposit Requirements: While some accounts have no minimums, others require a certain deposit to earn the highest APY or to avoid fees. Ensure the minimum aligns with your savings goals.
When to Consider a Certificate of Deposit (CD)
Certificates of Deposit (CDs) are another option for savers seeking high returns. Similar to MMAs and HYSAs, top CD rates are currently competitive, especially for shorter terms. The primary advantage of a CD is its fixed APY, guaranteeing your rate for the entire term. This makes CDs suitable for those who need predictable interest income and can commit to not accessing their funds until maturity, as early withdrawal penalties can negate any interest earned.
Making the Right Choice
In August 2025, the competition between high-yield savings accounts and money market accounts is fierce, with very similar APYs. The decision often comes down to your need for liquidity and access features. If check-writing or debit card access is important, a money market account may be preferable. If your sole focus is maximizing yield and you don’t need frequent access, both HYSAs and MMAs are strong contenders. For those prioritizing a guaranteed rate and willing to lock away funds, a CD remains a viable option.
Sources
- $10,000 in high-yield savings vs. $10,000 in a money market account: Which earns more?, Bankrate.
- Money Market Accounts vs. Savings Accounts vs. CDs, Bankrate.
- Best Money Market Account Rates Of August 2025 – Up to 4.40%, Bankrate.
- Best Money Market Accounts – July 2025, Kiplinger.
- Best Jumbo Money Market Rates For August 2025, Bankrate.
