CashRate WatchHigh-yield savings vs money market funds
Updated Nov 3, 2026 · 13 options with a confirmed rate shown on this page
A high-yield savings account is a bank deposit. A money market fund is an investment you buy at a brokerage. Both pay close to short-term interest rates. Here is how they compare this week.
This week's numbers
| High-yield savings | Money market funds | |
|---|---|---|
| Top rate we list | 4.30% APY Western Alliance Bank High-Yield Savings via Raisin | 3.89% 7-day yield Vanguard Federal Money Market (VMFXX) |
| Median we list | 3.65% (11 accounts) | 3.62% (8 funds) |
At this week's rates, savings accounts are ahead by 0.02 points at the median. The top savings rates often come with promotions or balance tiers; see the notes in the table.
| Name | Type | APY / yield | Risk label | Source |
|---|---|---|---|---|
| Western Alliance Bank High-Yield Savings via RaisinNew Raisin users: 90-day rate lock, after which the rate can change; held at Western Alliance Bank (Member FDIC) through Raisin, which is not a bank; APY as of 11/04/2026 | Savings | 4.30% | FDIC | source |
| EverBank Performance SavingsNew accounts | Savings | 4.20% | FDIC | source |
| Happen Bank (formerly LendingClub) LevelUp SavingsLendingClub is now Happen Bank; LevelUp Rate APY as of 11/03/2026 with $250+ in deposits per statement cycle, otherwise 3.00% Standard Rate | Savings | 4.20% | FDIC | source |
| Bask Bank SavingsAPY as of 11/03/2026; limited-time 0.40% boost to 4.30% for up to 6 months on new accounts bundled with Bask Interest Checking | Savings | 3.90% | FDIC | source |
| Vanguard Federal Money Market (VMFXX)7-day SEC yield as of 11/02/2026; expense 0.11%; not FDIC, SIPC at broker covers custody not value | Money market | 3.89% | SIPC | source |
| Vanguard Treasury Money Market (VUSXX)7-day SEC yield as of 11/02/2026; expense 0.07% | Money market | 3.88% | SIPC | source |
| Schwab Prime Advantage Money Fund (SWVXX)7-day yield (with waivers) as of 11/02/2026 | Money market | 3.77% | SIPC | source |
| CIT Bank Platinum SavingsTiered | Savings | 3.75% | FDIC | source |
| Schwab Government Money Fund (SNVXX)7-day yield as of 11/02/2026 | Money market | 3.63% | SIPC | source |
| Schwab U.S. Treasury Money Fund (SNSXX)7-day yield as of 11/02/2026 | Money market | 3.62% | SIPC | source |
| Schwab Treasury Obligations Money Fund (SNOXX)7-day yield as of 11/02/2026 | Money market | 3.60% | SIPC | source |
| Fidelity Government Money Market (SPAXX) | Money market | 3.56% | SIPC | source |
| Fidelity Treasury Money Market (FZFXX)7-day yield as of 11/02/2026; expense 0.42% (gross); not FDIC, SIPC at broker covers custody not value | Money market | 3.55% | SIPC | source |
Savings and broker cash show APY. Money market funds show 7-day yield. T-bills show the auction high investment rate (bond-equivalent yield). USDC shows a rewards rate, not interest. Rates checked Nov 3, 2026; they change often, so always confirm on the provider's site. Not financial advice.
How they differ
| High-yield savings | Money market fund | |
|---|---|---|
| What it is | A bank deposit | A mutual fund that holds short-term debt |
| Protection | FDIC-insured up to $250,000 per depositor, per bank, per ownership category | Not FDIC-insured. SIPC covers missing assets if the broker fails, not a loss in value. Aims for a $1 share price, not guaranteed. |
| Rate shown | APY, set by the bank | 7-day yield, after fund expenses; moves with market rates |
| Where you hold it | At the bank | In a brokerage account |
| Getting money out | Transfer out any time; usually 1 to 3 business days | Sell shares, then move cash out of the brokerage account |
| Minimums | Often $0; see each account | Fidelity $0; Schwab $0; Vanguard $3,000 |
| Taxes | Interest taxed federally and by your state, if it has an income tax | Dividends taxed federally; part of the income from government and Treasury funds may be exempt from state tax |
Money market account or money market fund?
The names are close but the products differ. A money market account is a bank deposit, FDIC-insured like savings. A money market fund is a security and is not FDIC-insured. This site lists funds.
Which fits
- If you want FDIC insurance and no brokerage account, a high-yield savings account is simpler.
- If your cash already sits at a brokerage, a money market fund avoids moving it, and often beats the broker's default cash rate. See broker cash rates.
- For money you won't need for a set period, T-bills are another option.
See all savings rates and money market fund yields.
Compare: USDC vs high-yield savingsBest broker cash ratesBest money market fund yieldsT-bills vs high-yield savings
What the risk labels mean
- FDIC
- A bank deposit. If the bank fails, the FDIC covers up to $250,000 per depositor, per bank, per ownership category. Broker "cash sweep" accounts spread money across partner banks to raise that limit.
- SIPC
- A security held at a brokerage, such as a money market fund. SIPC protects you if the brokerage fails and your assets go missing (up to $500,000, including $250,000 cash). It does not protect against the fund losing value. Government money funds aim for a stable $1 share price, which is not guaranteed.
- Treasury-backed
- A direct loan to the US government (T-bills). There is no insurance, and none is needed in the usual sense: you are paid by the US Treasury. If you sell before maturity the price can move a little.
- Not insured
- Crypto stablecoin rewards (USDC). There is no FDIC or SIPC coverage. You depend on the exchange, the stablecoin issuer, and rules that are still being written.
- FDIC / SIPC
- A mix. For example, part of the balance is held as brokerage cash (SIPC) and the rest is swept to banks (FDIC).
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