Which is Better: High-Yield Savings Accounts vs. Money Market Accounts Which is Better: High-Yield Savings Accounts vs. Money Market Accounts

Looking to grow your savings at a faster rate than a traditional savings account offers? High-yield savings accounts and money market accounts are two of the more common deposit accounts offering higher interest rates and earning potential than traditional savings accounts. While these two account types share many similarities, there are also notable and important differences to consider before deciding which one is the best fit for your individual savings goals. 

Below, we'll dive into what high-yield savings accounts and money market accounts are, how they work, how they're different, and how you might determine which one is the best fit to help you achieve your financial goals. 

What is a High-Yield Savings Account and How Does it Work?

A high-yield savings account is a type of interest-bearing deposit account that functions similarly to a standard savings account but with a significantly higher yield on deposited funds. For instance, the Federal Deposit Insurance Corporation (FDIC) reports that the national average for savings account rates in June 2025 is 0.38%. High-yield savings accounts generally offer significantly higher rates. Just to use one example, Leader Bank's  Zeugma Plus Savings currently offers 4.75% APY* on balances up to $250,000, which is more than 10 times greater than the national average. Leader Bank's Zeugma Plus Savings account also comes with an attached Zeugma Plus Checking account with 1% cash back on debit card purchases** to make accessing your funds even easier when you need to. High-yield savings accounts also have compound interest meaning you'll earn interest not just on your initial deposit but also all of your previously earned interest.

What is a Money Market Account and How Does It Work?

A money market account is another type of account offered by most banks and credit unions that combines some of the traditional features of both savings and checking accounts. Like high-yield savings accounts, they usually feature a higher interest rate than traditional savings accounts (depending on the broader financial landscape at the time of account opening). One notable difference between these two accounts is that money markets often have tiered interest rates, meaning that you could stand to earn more interest the higher your account balance is. Money markets also offer common checking account features like debit cards and checks to make it easier to withdraw funds from your account when you need to. Financial institutions will often limit how many monthly withdrawals you can make from a money market account (Leader Bank allows six preauthorized, automatic, telephone or third-party check transfers from your money market account each statement cycle). Depending on the financial institution, money market accounts may have minimum balance requirements (at Leader Bank, only $10 is currently required to open a money market account and earn interest). 

Pros and Cons of Money Market Accounts vs. High-Yield Savings Accounts

Below, we'll summarize some of the advantages and disadvantages of both money market and high yield savings accounts:

High-Yield Savings and Money Market Accounts – Which is Better?

It may come as no surprise, given each type of account has numerous positives and negatives, that the answer to this question is totally based on your individual circumstance and financial goals! The minimum balance requirements of money market accounts can be prohibitive if you're looking for an account to help build or maintain an emergency fund. Because you'll never know when you'll need to access your emergency fund (or how much money you'll need to withdraw) you may not want to worry about maintaining the minimum balance of a money market account.

If your priority is maintaining fast and easy access to your funds while growing your savings with a great rate, a money market account can be a good option because of the check-writing and debit card features. It's also important to note that some high-yield savings accounts (like Leader Bank's Zeugma Plus Savings account) come with an attached checking account to make accessing your money easier. 

Another important consideration to make when deciding between these two types of accounts is how the amount of money you'll be depositing will impact what rate you receive with each account. Remember, money markets often come with tiered interest rates so the bigger your account balance the more you stand to earn on your savings. 

How to Open a Money Market Account or High-Yield Savings Account

Ready to start maximizing your hard-earned savings while earning cash back on debit card purchases? The good news is that qualifying for Leader Bank's Zeugma Plus Checking and Savings accounts has never been easier, and opening an account can be done from anywhere in the U.S. in just a few minutes online!

And if you're interested in opening a money market account to take advantage of a tiered interest rate while maintaining easy access to your funds, you can do that in a just a few minutes online from anywhere in the U.S as well!

*^{Annual Percentage Yield (APY) effective as of 4 December, 2025. To open a new Zeugma Plus account relationship, you must make a total initial deposit of $1,000.00 using funds drawn from outside Leader Bank. Your Zeugma Plus Accounts must each be funded with a minimum of $10.00, the minimum balance required to maintain eligibility. To receive the 4.75% APY quoted, you must fulfill the following 3 requirements for your Zeugma Plus Checking each month: (a) receive a minimum of $1,000 in direct deposits, (b) enroll in eStatements, and (c) have three (3) electronic withdrawal debit transactions posted and cleared (excluding internal transfers) (the “Qualifying Criteria”). When you satisfy the Qualifying Criteria, then an APY of 4.75% shall be paid on Zeugma Plus Savings balances up to $250,000 in the following month. An APY of 2.50% will be paid on that portion of daily balances which exceed $250,000; your total APY for such balances will range from 2.50% to 4.75%, depending on total balance. If you do not meet the Qualifying Criteria in a month, you will be paid 2.50% APY on your entire balance in the following month. The APYs above are effective for accounts opened between 12/1/25 and 2/28/26 and shall not be changed for accounts opened in this timeframe until at least 5/31/26; thereafter APYs may vary. Limit one Zeugma Plus Checking and one Zeugma Plus Savings account per household; additional terms and conditions may apply.}

^{**Eligible Zeugma Plus Checking accounts that meet the Qualifying Criteria will be reimbursed up to $15 per month in ATM surcharges assessed by other banks and will receive debit card cash rewards of 1% on “Qualifying Purchases” per month. “Qualifying Purchases” include signature transactions only where the client selects “credit” as the transaction type. Transactions made at, with, or through the following vendors will not be counted towards the minimum number of debit transactions requirement for Zeugma Plus or receive the 1% cash back regardless of if it is a transaction where “credit” is selected as the payment type: Google Wallet, PayPal, Venmo, Square Cash, MoneyGram, or any other cash transfer, wire transfer or payment made through any money movement app, website, vendor or institution. Bonuses are subject to IRS tax reporting requirements IRS 1099-MISC.}