Money Market vs Savings: Understanding the Difference
The main difference between money market and savings accounts is the level of liquidity and the interest rates offered. Money markets offer higher liquidity than savings accounts, so money can be withdrawn more quickly. The interest rates on savings accounts tend to be higher than those on money markets. Money markets are therefore better for short-term savings than for long-term investments, and savings accounts are better for long-term investments than short-term savings. In terms of forex, money market investments typically involve trading currencies over a short period of time, while savings may involve more long-term investments in different currencies.