★ MONEY · MONEY MARKET VS SAVINGS · WHICH EARNS MORE?
On the defaults — a $10,000.00 deposit, 4.25% money market APY, 4.00% savings APY, 12 months, and a 22% tax rate — the money market account earns $433.38 of interest and $338.04 after tax, the savings account earns $407.42 and $317.79 after tax, so the money market wins by $20.25. Put in the same deposit for both accounts, and the calculator works out the ending balance, the interest, and the after-tax interest on each side — and works backwards when you have a target instead. Comparison #269 in the Bright Side Kit comparisons library. The companion guides are the CD vs savings account guide and the high-yield savings vs money market guide — this page is the calculator that runs the numbers for the same question. The CD vs money market page compares a CD against a money market account — a different pair.
A money market account and a savings account pay interest on the same deposit, but the rates differ — and the tax rate decides how much of the interest you keep. Put in the deposit, both APYs, the number of months, and the tax rate on the interest, and the calculator works out the ending balance, the interest, and the after-tax interest for each account, the gap, and the winner — and works backwards when you have a target instead.
On the defaults — a $10,000.00 deposit, 4.25% money market APY, 4.00% savings APY, 12 months, and a 22% tax rate — the money market ending balance is $10,433.38, the interest is $433.38, the after-tax interest is $338.04; the savings ending balance is $10,407.42, the interest is $407.42, the after-tax interest is $317.79; and the winner is the money market by $20.25. The whole calculation is three moves: compound each account monthly for the ending balance, subtract the deposit for the interest, and take the interest after tax — then the higher after-tax interest wins.
Five things about the model are worth stating plainly. First, the ending balance is the deposit times (1 + APY ÷ 12)months — $10,000.00 × (1 + 4.25% ÷ 12)12 = $10,433.38 for the money market account. Second, the interest is the ending balance minus the deposit — $10,433.38 − $10,000.00 = $433.38. Third, the after-tax interest is the interest times (1 − tax rate) — $433.38 × (1 − 22%) = $338.04. Fourth, the gap is the money market after-tax interest minus the savings after-tax interest — $338.04 − $317.79 = $20.25. And fifth, the winner is the higher after-tax interest, decided from the rounded gap — a rounded gap of exactly $0.00 is a tie, and a rounded gap of −$0.01 is a savings win by $0.01.
Setup: $10,000.00 deposit, 4.25% money market APY, 4.00% savings APY, 12 months, 22% tax.
Line 1 — work out the money market ending balance. $10,000.00 × (1 + 4.25% ÷ 12)12 = $10,433.38.
Line 2 — work out the money market interest. $10,433.38 − $10,000.00 = $433.38.
Line 3 — work out the money market after-tax interest. $433.38 × (1 − 22%) = $338.04.
Line 4 — do the same for savings and take the winner. The savings ending balance is $10,407.42, the interest is $407.42, and the after-tax interest is $317.79 — so the money market wins by $20.25. Rounding convention: totals are computed from unrounded values, so rounded parts may differ by a cent from their rounded sum.
Money market APY 5.00%: Deposit $10,000.00, money market 5.00%, savings 4.00%, 12 months, tax 22.00%: money market ending $10,511.62, interest $511.62, after-tax $399.06; savings ending $10,407.42, interest $407.42, after-tax $317.79; money market wins by $81.27 — a quarter point more on the money market rate lifts the gap to $81.27 — the money market interest is $511.62 and the after-tax interest is $399.06.
Savings APY 4.50%: Deposit $10,000.00, money market 4.25%, savings 4.50%, 12 months, tax 22.00%: money market ending $10,433.38, interest $433.38, after-tax $338.04; savings ending $10,459.40, interest $459.40, after-tax $358.33; savings wins by $20.29 — the flip: a savings rate of 4.50% lifts the savings after-tax interest to $358.33, and the savings account wins by $20.29.
24 months: Deposit $10,000.00, money market 4.25%, savings 4.00%, 24 months, tax 22.00%: money market ending $10,885.54, interest $885.54, after-tax $690.72; savings ending $10,831.43, interest $831.43, after-tax $648.52; money market wins by $42.20 — two years instead of one: the money market interest is $885.54 and the after-tax interest is $690.72, against $831.43 and $648.52 for savings — the gap is $42.20.
Deposit $25,000: Deposit $25,000.00, money market 4.25%, savings 4.00%, 12 months, tax 22.00%: money market ending $26,083.44, interest $1,083.44, after-tax $845.08; savings ending $26,018.54, interest $1,018.54, after-tax $794.46; money market wins by $50.62 — two and a half times the deposit, two and a half times the gap: the money market after-tax interest is $845.08 and the gap is $50.62.
Tax 0%: Deposit $10,000.00, money market 4.25%, savings 4.00%, 12 months, tax 0.00%: money market ending $10,433.38, interest $433.38, after-tax $433.38; savings ending $10,407.42, interest $407.42, after-tax $407.42; money market wins by $25.96 — no tax at all: the money market after-tax interest is $433.38 and the savings after-tax interest is $407.42 — the gap is $25.96, the full pre-tax gap.
Savings APY 3.00%: Deposit $10,000.00, money market 4.25%, savings 3.00%, 12 months, tax 22.00%: money market ending $10,433.38, interest $433.38, after-tax $338.04; savings ending $10,304.16, interest $304.16, after-tax $237.24; money market wins by $100.80 — a weaker savings rate widens the gap to $100.80 — the savings after-tax interest is $237.24.
6 months: Deposit $10,000.00, money market 4.25%, savings 4.00%, 6 months, tax 22.00%: money market ending $10,214.39, interest $214.39, after-tax $167.22; savings ending $10,201.67, interest $201.67, after-tax $157.30; money market wins by $9.92 — six months instead of twelve: the money market after-tax interest is $167.22 against $157.30 for savings — the gap is $9.92.
Deposit for $500.00 of money market interest: $11,537.29 — the exact deposit is 11537.2946. At $11,537.29 the money market interest is $500.00 (exact to the cent). $11,536.29 gives $499.96; $11,538.29 gives $500.04. The star is DOLLARS.
Money market APY for a $50.00 after-tax gap: 4.62% — the exact APY is 4.6163%. At the displayed 4.62% the after-tax gap is $50.30, $0.30 over the $50.00 target — rounding. 4.61% gives $49.49. The star is a PERCENT.
Months for money market interest to reach $500: 14 months — the smallest whole number of months that clears $500.00 of money market interest. At 14 months the interest is $507.41; 13 months gives $470.33. This is a step reverse: months come in whole months here, so there is no exact in-between. The star is MONTHS.
Tax rate for $300.00 of after-tax money market interest: 30.78% — the exact tax rate is 30.7767%. At the displayed 30.78% the after-tax money market interest is $299.99, $0.01 under the $300.00 target — rounding. 30.77% gives $300.03. The star is a PERCENT.
Savings APY for an exact tie: 4.25% — the exact savings APY is 4.2500%. At 4.25% the gap is $0.00 — an exact tie. 4.24% gives a gap of $0.81 and the money market wins; 4.26% gives a gap of −$0.81 and the savings account wins. The star is a PERCENT.
Deposit for a $100.00 after-tax gap: $49,382.34 — the exact deposit is 49382.3443. At $49,382.34 the after-tax gap is $100.00 (exact to the cent). $49,381.34 gives $99.99; $49,383.34 gives $100.00 as well, to the cent — rounding. The star is DOLLARS.
The defaults are a $10,000.00 deposit, 4.25% money market APY, 4.00% savings APY, 12 months, 22% tax — money market after-tax interest $338.04, savings after-tax interest $317.79, and the money market wins by $20.25. With a deposit of $0, Deposit $0.00, money market 4.25%, savings 4.00%, 12 months, tax 22.00%: money market ending $0.00, interest $0.00, after-tax $0.00; savings ending $0.00, interest $0.00, after-tax $0.00; Tie — nothing in, nothing earned, a tie. With 1 month, Deposit $10,000.00, money market 4.25%, savings 4.00%, 1 months, tax 22.00%: money market ending $10,035.42, interest $35.42, after-tax $27.63; savings ending $10,033.33, interest $33.33, after-tax $26.00; money market wins by $1.63 — the gap is $1.63 after one month of compounding. With 60 months, Deposit $10,000.00, money market 4.25%, savings 4.00%, 60 months, tax 22.00%: money market ending $12,363.02, interest $2,363.02, after-tax $1,843.16; savings ending $12,209.97, interest $2,209.97, after-tax $1,723.78; money market wins by $119.38 — five years of compounding widens the gap to $119.38. With a money market APY of 0%, Deposit $10,000.00, money market 0.00%, savings 4.00%, 12 months, tax 22.00%: money market ending $10,000.00, interest $0.00, after-tax $0.00; savings ending $10,407.42, interest $407.42, after-tax $317.79; savings wins by $317.79 — the money market earns nothing and the savings account wins by $317.79. With a deposit of $1,000,000, Deposit $1,000,000.00, money market 4.25%, savings 4.00%, 12 months, tax 22.00%: money market ending $1,043,337.72, interest $43,337.72, after-tax $33,803.42; savings ending $1,040,741.54, interest $40,741.54, after-tax $31,778.40; money market wins by $2,025.02. With a tax rate of 37%, Deposit $10,000.00, money market 4.25%, savings 4.00%, 12 months, tax 37.00%: money market ending $10,433.38, interest $433.38, after-tax $273.03; savings ending $10,407.42, interest $407.42, after-tax $256.67; money market wins by $16.36 — the higher tax shrinks both after-tax interests and the gap with them. Rounding convention: totals are computed from unrounded values, so rounded parts may differ by a cent from their rounded sum.
| Output | Formula | What it means |
|---|---|---|
| Deposit | input | $10,000.00. |
| Money market APY | input | 4.25%. |
| Savings APY | input | 4.00%. |
| Months | input | 12 months. |
| Tax rate on interest | input | 22.00%. |
| Money market ending balance | deposit × (1 + APY ÷ 12)months | $10,433.38. |
| Money market interest | ending balance − deposit | $433.38. |
| Money market after-tax interest | interest × (1 − tax rate) | $338.04. |
| Savings ending balance | deposit × (1 + APY ÷ 12)months | $10,407.42. |
| Savings interest | ending balance − deposit | $407.42. |
| Savings after-tax interest | interest × (1 − tax rate) | $317.79. |
| After-tax gap | money market after-tax − savings after-tax | $20.25. |
| Winner | higher after-tax interest, from the rounded gap | money market wins by $20.25. |
| Deposit for $500.00 of money market interest | exact 11537.2946 | $11,537.29 → $11,537.29. |
| $1 less than the R1 star | $11,536.29 | Deposit $11,536.29, money market 4.25%, savings 4.00%, 12 months, tax 22.00%: money market ending $12,036.25, interest $499.96, after-tax $389.97; savings ending $12,006.30, interest $470.01, after-tax $366.61; money market wins by $23.36. |
| $1 more than the R1 star | $11,538.29 | Deposit $11,538.29, money market 4.25%, savings 4.00%, 12 months, tax 22.00%: money market ending $12,038.33, interest $500.04, after-tax $390.03; savings ending $12,008.38, interest $470.09, after-tax $366.67; money market wins by $23.36. |
| Money market APY for a $50.00 after-tax gap | exact 4.6163% | 4.62% → 4.62%. |
| 0.01pp below the R2 star | 4.61% | Deposit $10,000.00, money market 4.61%, savings 4.00%, 12 months, tax 22.00%: money market ending $10,470.87, interest $470.87, after-tax $367.28; savings ending $10,407.42, interest $407.42, after-tax $317.79; money market wins by $49.49. |
| 0.01pp above the R2 star | 4.63% | Deposit $10,000.00, money market 4.63%, savings 4.00%, 12 months, tax 22.00%: money market ending $10,472.95, interest $472.95, after-tax $368.90; savings ending $10,407.42, interest $407.42, after-tax $317.79; money market wins by $51.11. |
| Months for money market interest to reach $500 | smallest whole number of months with money market interest ≥ $500 | 14 months → 14 months. |
| 1 month less than the R3 star | 13 months | Deposit $10,000.00, money market 4.25%, savings 4.00%, 13 months, tax 22.00%: money market ending $10,470.33, interest $470.33, after-tax $366.86; savings ending $10,442.11, interest $442.11, after-tax $344.85; money market wins by $22.01. |
| 1 month more than the R3 star | 15 months | Deposit $10,000.00, money market 4.25%, savings 4.00%, 15 months, tax 22.00%: money market ending $10,544.62, interest $544.62, after-tax $424.80; savings ending $10,511.84, interest $511.84, after-tax $399.24; money market wins by $25.56. |
| Tax rate for $300.00 of after-tax money market interest | exact 30.7767% | 30.78% → 30.78%. |
| 0.01pp below the R4 star | 30.77% | Deposit $10,000.00, money market 4.25%, savings 4.00%, 12 months, tax 30.77%: money market ending $10,433.38, interest $433.38, after-tax $300.03; savings ending $10,407.42, interest $407.42, after-tax $282.06; money market wins by $17.97. |
| 0.01pp above the R4 star | 30.79% | Deposit $10,000.00, money market 4.25%, savings 4.00%, 12 months, tax 30.79%: money market ending $10,433.38, interest $433.38, after-tax $299.94; savings ending $10,407.42, interest $407.42, after-tax $281.98; money market wins by $17.96. |
| Savings APY for an exact tie | exact 4.2500% | 4.25% → 4.25%. |
| 0.01pp below the R5 star | 4.24% | Deposit $10,000.00, money market 4.25%, savings 4.24%, 12 months, tax 22.00%: money market ending $10,433.38, interest $433.38, after-tax $338.04; savings ending $10,432.34, interest $432.34, after-tax $337.23; money market wins by $0.81. |
| 0.01pp above the R5 star | 4.26% | Deposit $10,000.00, money market 4.25%, savings 4.26%, 12 months, tax 22.00%: money market ending $10,433.38, interest $433.38, after-tax $338.04; savings ending $10,434.42, interest $434.42, after-tax $338.85; savings wins by $0.81. |
| Deposit for a $100.00 after-tax gap | exact 49382.3443 | $49,382.34 → $49,382.34. |
| $1 less than the R6 star | $49,381.34 | Deposit $49,381.34, money market 4.25%, savings 4.00%, 12 months, tax 22.00%: money market ending $51,521.41, interest $2,140.07, after-tax $1,669.25; savings ending $51,393.21, interest $2,011.87, after-tax $1,569.26; money market wins by $99.99. |
| $1 more than the R6 star | $49,383.34 | Deposit $49,383.34, money market 4.25%, savings 4.00%, 12 months, tax 22.00%: money market ending $51,523.50, interest $2,140.16, after-tax $1,669.32; savings ending $51,395.29, interest $2,011.95, after-tax $1,569.32; money market wins by $100.00. |
| Money market APY 5.00% | same model | Deposit $10,000.00, money market 5.00%, savings 4.00%, 12 months, tax 22.00%: money market ending $10,511.62, interest $511.62, after-tax $399.06; savings ending $10,407.42, interest $407.42, after-tax $317.79; money market wins by $81.27. |
| Savings APY 4.50% | same model | Deposit $10,000.00, money market 4.25%, savings 4.50%, 12 months, tax 22.00%: money market ending $10,433.38, interest $433.38, after-tax $338.04; savings ending $10,459.40, interest $459.40, after-tax $358.33; savings wins by $20.29. |
| 24 months | same model | Deposit $10,000.00, money market 4.25%, savings 4.00%, 24 months, tax 22.00%: money market ending $10,885.54, interest $885.54, after-tax $690.72; savings ending $10,831.43, interest $831.43, after-tax $648.52; money market wins by $42.20. |
| Deposit $25,000 | same model | Deposit $25,000.00, money market 4.25%, savings 4.00%, 12 months, tax 22.00%: money market ending $26,083.44, interest $1,083.44, after-tax $845.08; savings ending $26,018.54, interest $1,018.54, after-tax $794.46; money market wins by $50.62. |
| Tax 0% | same model | Deposit $10,000.00, money market 4.25%, savings 4.00%, 12 months, tax 0.00%: money market ending $10,433.38, interest $433.38, after-tax $433.38; savings ending $10,407.42, interest $407.42, after-tax $407.42; money market wins by $25.96. |
| Savings APY 3.00% | same model | Deposit $10,000.00, money market 4.25%, savings 3.00%, 12 months, tax 22.00%: money market ending $10,433.38, interest $433.38, after-tax $338.04; savings ending $10,304.16, interest $304.16, after-tax $237.24; money market wins by $100.80. |
| 6 months | same model | Deposit $10,000.00, money market 4.25%, savings 4.00%, 6 months, tax 22.00%: money market ending $10,214.39, interest $214.39, after-tax $167.22; savings ending $10,201.67, interest $201.67, after-tax $157.30; money market wins by $9.92. |
The math is first-principles: the ending balance is the deposit times (1 + APY ÷ 12)months; the interest is the ending balance minus the deposit; the after-tax interest is the interest times (1 − tax rate); the gap is the money market after-tax interest minus the savings after-tax interest; the winner is the higher after-tax interest, decided from the rounded gap. Every figure is rounded to cents half-up, and the totals are computed from unrounded values, so rounded parts may differ by a cent from their rounded sum. What the model cannot do is tell you what YOUR accounts will earn: it ignores that money market accounts may pay a different rate on different balance tiers, that savings rates change, that money market accounts often offer check-writing and debit cards while savings accounts may limit withdrawals, FDIC/NCUA insurance limits, and that interest is taxed as ordinary income in the year earned. Use it to size the gap between two rates, then check the account’s actual terms and your tax bracket before you move the money.
Bright Side Kit. "Money Market vs Savings Account: Which Earns More 2026?" https://brightoolbox.com/money-market-vs-savings/ Accessed October 26, 2026.On the defaults, the money market account — by $20.25. It earns $433.38 of interest and $338.04 after tax, against $407.42 and $317.79 for the savings account.
When its rate passes the money market rate. At a savings APY of 4.50% the savings account wins by $20.29. At a money market APY of 0% the savings account wins by $317.79.
$11,537.29. The exact deposit is 11537.2946: at $11,537.29 the money market interest is $500.00 exactly. At $11,536.29 the interest is $499.96.
14 months. At 14 months the interest is $507.41; at 13 months it is $470.33. Months come in whole months here, so there is no exact in-between.
30.78%. The exact rate is 30.7767%: at 30.78% the after-tax money market interest is $299.99, $0.01 under the $300.00 target, because the rate is rounded.
4.25%. The exact rate is 4.2500%: at 4.25% the gap is $0.00, an exact tie. At 4.24% the money market wins by $0.81; at 4.26% the savings account wins by $0.81.
$49,382.34. The exact deposit is 49382.3443: at $49,382.34 the after-tax gap is $100.00 exactly.
It shrinks the gap, but it cannot flip it here. Both accounts are taxed at the same rate, so the higher rate always wins before tax and after tax — at a 37% tax rate the gap is $16.36, and at 0% it is $25.96.