A Money Market Account is a deposit account that can help savers earn interest while keeping access to their funds. It is not the same thing as a money market fund. A Money Market Account is offered by a bank; a money market fund is an investment product.
For many savers, the practical question is whether a Money Market Account is better than a basic savings account. The answer depends on your balance, how you plan to use the money, and how much access you need.
What Is a Money Market Account?
A Money Market Account combines savings-account features with some checking-style access. At Chemung Canal, the Personal Money Market Account offers a tiered interest rate based on daily ledger balance, six checks per month, and unlimited withdrawals when transactions are made in person, at an ATM, or when linked to automatic payments on a Chemung Canal loan.
This account requires a $1,000 minimum deposit to open; balances below $1,000 do not earn interest and are subject to a $10 monthly service charge.
Money Market vs. Savings Account: The Real Difference
| Feature | Personal Savings | Money Market |
| Main purpose | Simple place to build savings | Higher-balance savings with added access |
| Minimum deposit | No minimum deposit listed for Personal Savings options shown on Chemung Canal site | Minimum deposit of $1,000 to open |
| Interest structure | Variable interest rate on listed savings options | Tiered interest rate based on daily ledger balance |
| Check access | Not positioned as check-writing account | Six checks per month |
| Best for | Starting or maintaining a savings habit | Larger balances where access and yield both matter |
When a Money Market Account May Make Sense
A Money Market Account may make sense when you have built up savings and want the money to remain accessible. It can be useful for an emergency reserve, a future purchase fund, or money that may need to be accessed without locking into a CD term.
Because the interest rate is tiered, the account is generally most useful when you can maintain the balance needed to earn interest and avoid monthly service charges.
When Personal Savings May Be the Better Fit
A Personal Savings account may be the better starting point if you are still building your savings, want a simple account structure, or do not want to manage a $1,000 Money Market minimum deposit and balance-related requirements.
Chemung Canal’s Personal Savings page lists savings options with no minimum deposit required and no minimum balance for certain accounts, making them useful for customers who are just getting started or saving gradually.
Money Market Account vs. Money Market Fund
This distinction matters. A Money Market Account at a bank is a deposit account. A money market fund is an investment product. Before moving money into any product labeled ‘money market,’ confirm whether it is a bank deposit account or an investment product and whether deposit insurance applies.
How Interest Works on a Money Market Account
Chemung Canal’s Money Market Account uses a tiered-interest-rate structure based on daily ledger balance. In plain English, that means your balance level can affect what you earn. Since rates can change, check the current rates page before opening or moving funds.
How to Open a Money Market Account at Chemung Canal
Start by reviewing the Money Market Accounts page and Today’s Interest Rates. Confirm the current minimum deposit, balance requirements, service charge details, and transaction access before opening the account.
Make Your Savings Work Harder
If your savings balance has grown and you want access plus earning potential, a Money Market Account may be worth comparing against your current savings account. Explore Money Market Accounts or compare Personal Savings options.
Or call 800-836-3711 to speak with a Chemung Canal Savings Specialist.
