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High Interest Savings vs. Tiered Money Market

What is the difference between high interest savings accounts and tiered premium money market accounts?


There isn't necessarily any difference. Both are phrases used to describe deposit accounts. More specifically, either phrase could be used to suggest that the yield on accounts are high or premium, without saying anything particularly specific about the account.

A tiered account is one that pays different interest rates depending on the balance is the account. Usually, higher balances in such accounts earn a higher interest rate than lower balances, although there have recently been a number of tiered rate accounts for which the reverse is true.

Aside from the tiering feature, neither of the two phrases provides much useful information about the described accounts. The only way to know more about the accounts in question is to visit the offering banks' websites or phone or visit the banks to get detailed disclosures. Then you should compare those disclosures, looking at the Annual Percentage Yields offered and the fees that apply, to determine which account best suits your needs.

Published on BankingQuestions.com 5/07/08