What type of accounts typically provide higher interest rates than regular savings accounts?

Money market accounts offer higher interest rates than regular savings accounts because they are designed to provide greater access to savings while still encouraging users to maintain higher balances. These accounts typically require a higher minimum deposit compared to standard savings accounts, which allows financial institutions to manage their funds more effectively and offer better interest rates. Additionally, money market accounts often combine features of both savings and checking accounts, providing the option for limited check-writing and debit transactions, which can attract customers looking for both interest growth and flexibility.

Regular savings accounts usually offer lower interest rates because they are intended for more accessible, everyday savings, whereas money market accounts are geared towards consumers willing to maintain higher balances for potentially better returns.