Passive income is a source that earns money for you with minimal effort. In the case of High–Yield Savings Accounts (HYSA) and Money Market Accounts (MMA), it does not get much less in effort and can actually generate money while you are sightseeing! What are some basics to know?
- A main difference between HYSA and MMA is in access. An MMA typically comes with a checkbook whereas a HYSA will not.
- The initial investment with an MMA is generally higher than that of a HYSA.
- There are often amounts that must be maintained in these accounts when withdrawals are permitted.
- Both options are relatively safe. MMAs are insured up to $250,000, per depositor, by the Federal Deposit Insurance Corporation (FDIC).