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Trying to grow your money? Here's how to pick between a savings and money market account

VIDEO2:2002:20
When to invest with a savings account vs. money market account

Money market accounts and savings accounts may appear similar, yet there are a few key differences that you should consider when deciding where to park your money.

Savings accounts generally give you a higher interest rate than regular checking accounts and still offer relatively easy access to your money.

Savings and money market accounts are backed by the FDIC if the bank is a member. It is important to note that if you invest in a money market mutual fund offered by a brokerage, this is not insured by the FDIC.

Money market accounts are also considered a type of savings account, but the interest rate is usually even higher. But here's the catch, money market accounts often require higher minimum balances and deposits — something like $5,000, $10,000 or even $25,000.

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When picking an account, you will want to look at the interest rate you'll be getting, and note any restrictions on the account — including minimum deposits and your ability to remove funds. For example, multiple money market accounts allow you to write checks or have a debit card to remove funds, but only a limited number of times a month.

Also, be aware of any fees. One charge could wipe out your interest payments for a month, or even more.

Watch the video above to learn more.

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