With yields above 4.5%, both money market and high-yield savings accounts are attractive for emergency funds. Here is how they compare and which is right for your situation.
Comparison
- High-yield savings (Marcus, Ally): 4.8% APY, FDIC insured, unlimited transfers
- Money market (Fidelity, Schwab): 4.7% APY, check-writing ability, some limits
- Treasury bills (4-week): 5.1% yield, state tax exempt
- CDs: 5.0-5.3% but locked term
For a true emergency fund, high-yield savings wins due to instant access and no restrictions. For funds you won't need for 3-12 months, T-bills offer higher after-tax yield due to state tax exemption.
