What is better, a CD or a high-yield savings account?

The choice may depend on whether you need frequent access. CDs work best if you don’t need access to your money and want fixed returns, while HYSAs offer flexibility with variable rates. HYSAs often offer more flexibility, while short-term CDs may provide slightly higher rates.

How much will a $10,000 CD make in a year?

It depends on the interest rate. For example, at 4%, a 1-year CD would earn about $400 in interest.

Can I have both a CD and an HYSA?

Yes, many savers have both. You may want to use an HYSA for emergencies and a CD for money you can set aside long-term.

High-Yield Savings Accounts vs. Money Market Accounts: What’s the Difference?

5 Min Read | Published: 2 December, 2025 

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This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.

High-yield savings account vs. money market: Learn the key differences, benefits, and how to choose the right account to grow and access your savings.

At-A-Glance

Both high-yield savings accounts (HYSAs) and money market accounts (MMAs) offer higher interest than standard savings accounts.
HYSAs are typically simple, online-based accounts, whereas MMAs often include check-writing or debit access.
The right choice depends on your savings goals—whether you prioritize flexibility or higher returns.

Saving money is a crucial aspect of budgeting, and it can be challenging to decide which type of savings account should be your go-to place to store funds for later use. The truth is that the type of account you choose depends on your savings goals and lifestyle. Two popular savings choices are high-yield savings accounts (HYSAs) and money market accounts (MMAs). Both may grow your funds faster than traditional savings accounts, but they also have key differences that could affect which one you prefer.

Let’s discuss some of the defining qualities of both accounts so you can decide which one works best for you.

What Is a High-Yield Savings Account?

HYSAs are a type of account that can offer higher annual percentage yields (APYs) than traditional savings accounts, allowing you to grow your funds more quickly. They’re often offered by online banks,¹ and they may not include check-writing or debit access,² so they’re primarily dedicated to growing your funds. You can often link your HYSA to your checking account, which may be a useful way to access your funds.

Because they work similarly to traditional savings accounts, HYSAs may be a great option for individuals who want to put away money to build an emergency fund or grow their cash toward a savings goal. Since they typically have low or no minimum balance requirements,³ they can work well if you don’t want to put a lot of effort toward growing your funds. You can deposit regularly with ease and watch your account grow over time.

EARN MORE with a High Yield Savings Account. Watch your savings grow. American Express National Bank, Member FDIC. Terms apply. Learn More.

What Is a Money Market Account?

You might consider an MMA as a cross between a savings account and a checking account. MMAs earn interest like a traditional savings account, but they also allow limited debit or checking access. This may give some users more peace of mind that they can access their funds without jeopardizing their savings growth.

Easier access may come with drawbacks, though. MMAs might require higher minimum balances than HYSAs to avoid fees.⁴ So, while MMAs may offer more access to funds, you risk running into fees if your balance falls below a certain level.

Differences between HYSAs and Money Market Accounts

	High-Yield Savings Account (HYSA)	Money Market Account (MMA)
Interest Rates	Higher than standard savings, competitive online APYs	Competitive, sometimes slightly lower than HYSAs
Access to Funds	Transfers only, no check-writing or debit	Limited check-writing and debit access allowed
Minimum Balance	Often low or none	Often requires higher balances to avoid fees
Flexibility	Best for “set it and forget it” saving	Best for saving and occasional spending access
FDIC/NCUA Insured	Yes (up to legal limits)	Yes (up to legal limits)

Which Account Is Right for You?

Whether you want to put your funds in a HYSA or an MMA may depend on your personal preferences and your savings style. If you’re comfortable with a traditional savings account but want higher APYs and lower minimum balances, then a HYSA could be a great option for saving your money for a rainy day. If you think you could benefit from being able to withdraw your savings funds occasionally and protect yourself from low-balance fees, then an MMA might be right for you.

Frequently Asked Questions

Which account suits you better depends on your preferences. HYSAs offer higher returns with lower balance requirements, but typically don’t offer debit access or check writing. MMAs provide more flexible access to your funds, but they could charge fees if you don’t meet balance requirements.

What your account yields on an annual basis depends on the account’s APY. For example, at 3% APY, $100,000 could earn around $3,000 at the end of the year before taxes.

For some, a downside to a HYSA could be that you generally can’t write checks from the account or use a debit card. Like all interest-bearing accounts, rates for HYSAs may fluctuate depending on the bank, so make sure to shop around.

The Takeaway

Both HYSAs and MMAs offer valuable ways to grow savings faster than a traditional savings account. HYSAs are easy to use for individuals who are comfortable with traditional savings accounts, but they can grow your accounts faster with higher APYs. MMAs also offer high APYs, but they also allow for more flexibility with increased access. The best choice for you comes down to your account needs and saving strategy.

Ready to start saving smarter? Explore the American Express High-Yield Savings Account today.

¹ “What is a High-Yield Savings Account?,” NerdWallet

^2,4 “Money Market Account Vs. High-Yield Savings Account,” CNBC

³ “What Is a High-Yield Savings Account?,” CNBC

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Scott Drueding Hanson is a content writer and copywriter based in Brooklyn. His work focuses primarily on personal finance.

All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.

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