Savings Account vs Money Market Account?

Savings Account vs Money Market Account?
My boyfriend and I have savings accounts with our credit union. We each have $1500 in our savings accounts and get 75 cents in interest every month. I am seriously considering getting a Money Market account with Capital One. Are there any advantages to having a savings account over a money market? Other than over draft protection?
The Capital One Money Market says:
Service and maintenance fees do not apply to this account. You need $1 to open an account, but you'll earn interest on any amount you have in your account. Secure and easy access to your money with free checks, an ATM card and easy online transfers. And I they allow 6 withdraws per month. Which is more than enough.
Money Market at Capital One is at 4.5%
At my Credit Union up to 2500 1.9% 2500-10000 is 2.15% and:
Avoid monthly service fees with a minimum balance of only $2,500*
Receive FREE checks
Earn higher dividends
Get three free check withdrawals per month (minimum $100 each)* and unlimited over-the-counter withdrawals
Access funds anytime through eBranch online banking and P.A.T. , the phone activated teller


Answers:

Chosen Answer
Kendrick:  Money Market accounts have higher interest rates, but you're restricted to how much and how often you can take money out of the account. Also, there is usually a minimum balance required.
You may want to call your credit union, as many actually have money market accounts themselves.
2007-11-13 10:06:58
Jen:  I have online accounts with ING Direct and the interest rate is 4.2% on the savings account.

Look around for the best deals, but a money market account at Capital One may not any better than with any other bank you can get a money market account.
2007-11-13 10:07:39
ckm1956:  Money Markets are a good alternative to savings accounts.
I've never seen one that restricts withdrawals.

Our checks are deposited directly into a brokerage Money Market Fund. I then turn around and pay our bills from that account on-line.

If you do go with a Money Market On-line, be sure to set up the ability to electronically transfer $$$ back & forth between the credit union & the firm holding the money market.
2007-11-14 17:56:55
mister ed:  most money market account are not insure!!!!
2007-11-17 13:01:49