HYSA vs Money Market Breakeven
Example: Your savings balance: 8000 $ · HYSA APY: 5 % · Money market APY: 5.25 % · Money market minimum balance (fee waiver threshold): 10000 $ · Monthly fee if below minimum: 12 $
| Breakeven balance for money market | $57,600 |
| HYSA is better at this balance (1=yes) | 1 |
| HYSA annual interest | $400 |
| Money market net interest (after fees) | $276 |
| Money market net advantage (positive = MM wins) | $-124 |
Worked example
A $8,000 balance earns $400 a year in a 5% HYSA. The same balance in a 5.25% money market earns $420 — but the $10,000 minimum is not met, so a $12/month ($144/year) fee applies. Net money market yield is $276 — $124 less than the HYSA. The breakeven balance is $57,600 (where 0.25% rate advantage equals $144 in fees).
Frequently asked questions
What is the difference between a money market account and a money market fund?
A money market account (MMA) is an FDIC-insured bank deposit product with a variable rate and optional check-writing. A money market fund is an investment product (not FDIC-insured) that holds short-term debt securities. They are often confused but carry different risks. This calculator covers money market accounts.
Can I negotiate the minimum balance on a money market account?
Rarely with online banks, but occasionally with credit unions or community banks where you have an existing relationship. More practical is to combine accounts: some banks waive the fee if your combined checking + savings balance exceeds the minimum.
Are there no-fee money market accounts?
Yes — some online banks offer money market accounts with no minimum balance fee and competitive rates. In that case the breakeven balance is zero and the comparison is purely rate-to-rate. Use this tool with $0 monthly fee to compare pure APY competition.
How often do money market account rates change?
Money market rates are variable and typically track the federal funds rate. They can change monthly. HYSA rates also vary. Both account types require periodic comparison — rate advantages that exist today may narrow or reverse. Set a calendar reminder every 6 months to compare current offers.