What is the downside of a money market account?

Money market accounts combine some of the best attributes of checking and savings accounts, but they also have some of the downsides of each. Like savings accounts, money market account withdrawals are generally limited to a maximum of six per month, and while ATM access is common, money market accounts rarely have the ability to spend with a debit card.

Can a money market account take the place of a checking account?

Money market accounts generally include check-writing capabilities, as well as ATM card access to your money. However, many limit withdrawals to a certain number per month and their cards are generally just ATM cards, not debit cards.

Why do money market accounts tend to have high interest rates?

Money market accounts often have interest rates that are comparable to high-yield savings accounts, as well as some features you'd normally expect from a checking account. The reason is that they are typically designed to attract high-balance customers to banks. They often have relatively high minimum deposit requirements and may limit the number of allowed withdrawals.

Synchrony Money Market Account Review

Synchrony Bank doesn't have an online checking account, but its money market account is a solid checking alternative. The Synchrony Money Market account combines some of the best features of checking and savings accounts and is a highly competitive online banking product. In this in-depth Synchrony Money Market account review, we'll discuss the pros and cons of the account, as well as other important details you need to know.

Ratings Methodology

Rates as of Jun 30, 2024

Synchrony Money Market

Member FDIC.

Rating image, 4.00 out of 5 stars.

4.00/5

Rating image, 4.00 out of 5 stars.

4.00/5

Monthly Fee

$0

Min. Balance

$0

APY

2.25%

Min. To Earn APY

$0

Pros/Cons

Competitive APY
No minimum deposit or balance
No monthly fees
ATM access with fee reimbursement
Checks available

Interest rates isn't as high as high-yield savings
Withdrawals can be limited
No debit card
No branch access

Bottom Line

Simplicity is the name of the game with Synchrony Money Market. There's no minimum balance to earn the APY, account holders have checking and ATM capabilities, and the lack of nuisance fees means more money in your pocket.

Full Synchrony Money Market review

In this review, we'll take a closer look at the pros and cons of the Synchrony Money Market account.

Top perks

Competitive APY: The Synchrony Money Market account offers a 2.25% annual percentage yield (APY) which is significantly higher than what most online-based checking accounts pay.

No minimum balance requirement: Unlike many money market accounts, Synchrony's doesn't have any minimum balance requirement, and it also doesn't require customers to maintain any certain balance to get the best APY.

No monthly fees: There are no monthly maintenance fees associated with the Synchrony Money Market account.

ATM access with reimbursement: There is an ATM card available with the Synchrony Money Market account. It allows account holders to get cash at thousands of ATMs in the Plus or Accel networks with no fees. In addition, Synchrony will reimburse as much as $5 per statement cycle in out-of-network ATM fees for all customers, and those with Diamond status in Synchrony's Perks Rewards program get unlimited ATM fee reimbursement.

Check writing: Account holders can request checks to use with their Synchrony Money Market account, so you can use the account to pay bills or make purchases.

What could be improved

APY is lower than savings accounts: The Synchrony Money Market account's APY is competitive, but isn't the highest-paying MMA on our radar. Plus, if your priority is saving money, you'd be better off with Synchrony's excellent high-yield savings account.

No physical branches: As an online bank, Synchrony Bank isn't the best fit for customers who regularly need in-person assistance with their accounts, or who might want in-person banking services like notary services or safe deposit boxes.

No debit card: One important thing to point out is that the Synchrony Money Market account can have an ATM card, but it is not a debit card. In other words, you can't use it to pay for purchases in stores and online like you would with a Visa or Mastercard-branded debit card.

Withdrawal limitations: The same six-withdrawal-per-month limitation that typically applies to savings accounts also applies to money market accounts. This, combined with the lack of a debit card, is what makes the Synchrony Money Market account fall shy of being a true checking account alternative.

How to access your money

For an online money market account, Synchrony offers quite a few ways for account holders to deposit and withdraw money.

Deposit options

Synchrony offers several ways to deposit money into a Synchrony Money Market account:

Transferring money from an external linked account, or from another Synchrony Bank account.
Mobile check deposit (Synchrony has an excellent mobile app).
Direct deposit (so, you can have your paycheck deposited into the account).
Wire transfers from another bank.
You can also mail a check to Synchrony to deposit money.

Withdrawal options

There are several ways to get money out of a Synchrony Money Market account, including:

ATM withdrawal: Withdraw from any ATM in the Plus or Accel networks (there are thousands), or at any other ATM, as Synchrony will reimburse up to $5 in out-of-network ATM fees per statement cycle. For customers with Diamond status in Synchrony's Perks Rewards program, the ATM fee reimbursement is unlimited.
Transfer to another account: Customers can quickly transfer money to both internal and external accounts. There is no fee for fund transfers.
Write a check: While checks aren't automatically issued to Synchrony Money Market account owners, they can be requested.
Wire transfer: You can wire money out of a Synchrony bank account by calling the customer service number.

This money market account is right for you if:

The Synchrony Money Market account can be an excellent fit if you're looking for some of the spending convenience and flexibility of a checking account, but don't need the ability to make debit card purchases or frequent withdrawals.

Keep reading about Synchrony Bank:

Review sources
- https://www.synchronybank.com/banking/money-market-account/
- https://www.synchronybank.com/banking/ratesandterms/

Our money market account methodology

At The Motley Fool Ascent, we evaluate money market accounts based on four main criteria: annual percentage yield (APY), brand and reputation, fees and minimum balance requirements, and perks.

Our scores are weighted as:

APY: 60%
Brand and Reputation: 15%
Fees and Minimums: 15%
Perks: 10%

Learn more about how The Motley Fool Ascent rates bank accounts.

FAQs

Money market accounts combine some of the best attributes of checking and savings accounts, but they also have some of the downsides of each. Like savings accounts, money market account withdrawals are generally limited to a maximum of six per month, and while ATM access is common, money market accounts rarely have the ability to spend with a debit card.
Money market accounts generally include check-writing capabilities, as well as ATM card access to your money. However, many limit withdrawals to a certain number per month and their cards are generally just ATM cards, not debit cards.
Money market accounts often have interest rates that are comparable to high-yield savings accounts, as well as some features you'd normally expect from a checking account. The reason is that they are typically designed to attract high-balance customers to banks. They often have relatively high minimum deposit requirements and may limit the number of allowed withdrawals.

This device is too small

Synchrony Money Market Account Review: An Excellent Account for Spending and Saving