Money Market vs. Savings: Which Account Makes the Most Cents?

Uncover the secret to financial success with our revealing banking insights. Discover the difference between savings and money market accounts, the intriguing tale of the disappearing $500 bill, and the hidden limits on mobile deposits. If you have a burning question about your banking needs, reach out to our banking expert, Alex, at alexexpertbanker@gmail.com. All relevant questions will be featured on our website, with Alex providing prompt responses. Join us in the pursuit of banking excellence and unravel the mysteries of financial success.

Question: What is the difference between a savings and money market account?

Asked by: Ethan from Woodbridge, New Jersey.

Answer: Both savings and money market accounts are deposit accounts that are offered by banks and credit unions. The purpose of these accounts is to save money in a secure location while earning interest. They are both FDIC insured up to $250,000 per account holder. Unlike a certificate of deposit, funds can be withdrawn from a savings or money market account anytime without a penalty. Regulation D does limit the number of times funds can be withdrawn and/or transferred out of a savings or money market account without an excessive withdrawal fee to six per month. The key difference between savings and money market accounts lies in how the money can be disbursed. Funds can be accessed from both types of accounts through a debit/ATM card, online/mobile banking, and in-person at a branch. Money market accounts take convenience to another level by providing Bill Pay and check-writing capabilities. Another difference between the two are fees and interest rates. Savings accounts typically earn lower interest rates compared to money market accounts, but they usually have lower monthly service fees and minimum balance requirements.

Question: What happened to the $500 bill?

Asked by: James from Norman, Oklahoma.

Answer: The Bureau of Engraving and Printing (BEP) first issued the $500 bill in 1861. Throughout the years, there have been several versions of the bill. Most notably, the 1918 series, which has the portrait of former Chief Justice John Marshall, and the 1928 and 1934 series, that has the portrait of former President William McKinley. The last series was printed by the BEP in 1945. On July 14, 1969, the Department of Treasury and Federal Reserve announced that the $500 bill would be discontinued and removed from circulation. While the $500 bill is still legal tender, a majority of the notes can be found among dealers and collectors. The value of most are between $550 to $1600, but depending on the condition and scarcity, some are worth much more.

Question: Is there a limit to how much I can deposit using mobile deposit?

Asked by: Ashley from Tallahassee, Florida.

Answer: Mobile deposit is a convenient service that allows bank customers to deposit checks into their checking or savings account using a smartphone. The customer will log into their financial institution’s mobile app, select the account they want the funds to be deposited into, enter the check amount, take a picture of the front and back of the check, review, and finally submit the transaction. Each financial institution will have a daily, weekly, and/or monthly limit on how much can be deposited using mobile deposit. The limit will typically be displayed once the deposit account is selected. When that limit has been reached, no further checks can be deposited until the time period is reset.

Written by: Alex Sanchez, Branch Manager

Important: For your specific questions about banking, contact your banking expert, Alex, at: alexexpertbanker@gmail.com

Alex has been in banking for almost 20 years. He has worked for such notable banks as Bank of America, US Bank, and Chase. Alex has his bachelor’s degree in Business Economic from the University of California Riverside.

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