Banking: Savings Acc vs Money Market Acc

[Takkies]

Can somebody please explain the difference? Clearly there is a different interest rate and with a Money Market there is always a min balance, but I’m interested in the security.

• Is the savings account more secure?
• Does the Reserve Bank underwrite accounts?
• What if your chosen bank goes bust?
• Is there a standard that must be met when an institution claims to be “A Registered Financial Services and Credit Provider”?

 

[Barefoot Billionaire]

Don't know about a money market account with your bank, but a money market unit trust is definitely lower-risk IMO.

You have exposure to several counterparties, not only your bank (remember Saambou?). And your money is kept in trust by independent trustees.

 

[CathJ]

Don't know about a money market account with your bank, but a money market unit trust is definitely lower-risk IMO.

You have exposure to several counterparties, not only your bank (remember Saambou?). And your money is kept in trust by independent trustees.

Lower risk than what? Definitely not lower risk than a savings account, or a marketlink account!

A money market account is completely different from a money market unit trust.

 

[Takkies]

I'm Not much interested in a unit trust at this stage, just wanna open an account.

I think that a Marketlink account is just Standard Bank's version of a Money Market. Account. It's the same instrument. Problem is that many people seem to think that the only difference is the interest rate. I'm sure there's alot more to it.