Rather than market similar, yield-earning deposit products as savings versus money market accounts, one tactic banks use is to offer savings products on a spectrum, Stockton says.
“There’s often an entry-level savings account where there’s nearly unlimited access, no minimum balances, no fees. And then there’s another—sometimes it’s called a money market account, sometimes it’s called another savings account—with a potentially higher minimum balance, maybe a tiered interest structure, maybe more limits on how you can access your money.”
These higher-earning accounts are for people looking to score the best rate. But they can also require higher minimum balances or opening deposits, targeting those customers who are willing to deposit large sums or keep substantial amounts in their account longer.
Rather than focusing on the account name, look to the account details for characteristics suiting your needs best, like accessibility and balance requirements.
“Traditionally, the first type of account might be called a savings account and the second account might be called a money market account, but that’s not necessarily true any longer,” Stockton says. “At some banks, they’re both called savings accounts, for example. The nomenclature is almost archaic at this point.”