Money Market Account vs Money Market Fund
What’s a Money Market Fund?
If you’ve ever wondered whether a money market account or a money market fund is better for your savings, you’re not alone. They sound similar—but they’re actually quite different. At ZYNLO, we’re here to help you make smart, informed choices with your money.
What’s a Money Market Account?
A money market account^ is a type of savings account offered by banks like ZYNLO. It usually earns more interest than a regular savings account and may come with check-writing or debit card access. Most importantly, it’s FDIC insured, which means your money is protected up to $250,000.
Money market accounts are great for short-term savings goals or emergency funds. You get easy access to your money, predictable interest, and peace of mind knowing your funds are safe.
What’s a Money Market Fund?
A money market fund, on the other hand, is an investment product offered by brokerage firms. It pools money from investors to buy low-risk securities like government bonds and commercial paper. These funds are not FDIC insured, and while they’re generally low-risk, they can still fluctuate slightly in value.
Money market funds are often used by investors to park cash temporarily while waiting to invest. They may offer higher yields than bank accounts, but they come with a bit more risk and less immediate access to your money.
Tax Implications to Consider
Unlike money market accounts, money market funds can have tax consequences. The income you earn from these funds is typically taxed as ordinary income. If you invest in a municipal money market fund, you might benefit from tax-exempt interest—but that depends on your state and tax bracket. Always consult a tax advisor if you’re unsure how it affects your situation.
So Which One Should You Choose?
If you want security, simplicity, and easy access, a money market account is probably the better fit. It’s ideal for saving, not investing. If you’re already working with a brokerage and are comfortable with a little market movement, a money market fund might offer better returns.
At ZYNLO, we offer a high-yield money market account^ that earns more than 7× the national average^^ (as of 09/30/2025)—with no cap on interest and no monthly fees. Whether you’re building an emergency fund or saving for something big, we’re here to help you grow.
^ZYNLO Money Market Account: The minimum balance needed to obtain the Annual Percentage Yield (APY) is $0.01. APY is valid as of 10/09/2025 and subject to change without notice. Competitive rates are reviewed periodically.
^^The average national money market account interest rate of 0.59% Annual Percentage Yield (APY) is determined by the FDIC as of 09/15/2025, and is based on a simple average of rates paid by all insured depository institutions and branches for which data are available. Visit FDIC: National Rates and Rate Caps to learn more. Competitive rates are reviewed periodically.
