For money you need quick access to - for emergency funds and other liquidity needs - you generally want the highest interest rate you can find with the least restrictions.  But since most savings accounts are taxable, your tax bracket should also be considered.  For people who are in high tax brackets or who live in areas with high state taxes, muni money market funds may also make sense.  Those are accounts invested in municipal bonds of state and local government and have built-in tax advantages.  A New Jersey muni money market fund, for example, is exempt from New Jersey and federal taxes.  Let’s say your bank offers you a savings account with an interest rate of 4%.  If your federal and state combined marginal tax rate is 30%, then you net 2.8% after tax.  If you can find a muni money market fund for your state that pays more than that, you are better off in the muni fund.