are money market accounts now accounts
Money market account. This article is about the type of bank deposit account. For the type of mutual fund, see Money market fund. A money market account (MMA) or money market deposit account (MMDA) is a deposit account that pays interest based on current interest rates in the money markets. IRAs, Money Markets, Stocks and more. Money Market Accounts. Money market accounts are a bit like a savings account and a checking account combined: a you get a higher interest rate than a standard savings account plus check-writing ability. The interest rates paid are generally higher than those of savings accounts and transaction accounts; however, some banks will require higher minimum balances in money market accounts to avoid monthly fees and to earn interest. What to look for in a money market account. If you decide to open a money market account, look for one with the best rates and no monthly fees. It should also have a reasonable minimum balance. Some institutions require as much as $10,000 just to open an account. Money market accounts have their limitations. Personal Money Market Accounts. The Money Market Account is a savings account that earns interest based on the performance of underlying variables in the money market. Money Market Accounts are sorted in the table above according to their money market rates, from highest to lowest. Here’s what a money market account isn’t: It isn’t a checking account. Some MMAs have check-writing and debit card features. But, as with savings accounts, they are limited by the Federal Reserve to six “convenient” transfers or withdrawals a month — including by check, debit card swipe or online transfer. What is a 'Money Market Account'. A money market account is an interest-bearing account that typically pays a higher interest rate than a savings account, and which provides the account holder with limited check-writing ability. A money market account thus offers the account holder benefits typical of both savings and checking accounts. Money Market Funds are not insured by the FDIC and are not the same thing as Money Market Accounts. A Money Market Fund (or Money Market Mutual Fund) invests in slightly riskier financial instruments like debt and foreign securities. Commission fees are passed on to the investors and MMFs can actually lose money. When people have some cash on hand, they may consider either a money market savings account or a more traditional savings account. These two types of accounts are quite similar, but understanding some slight differences can help you decide which is right for you. The primary difference between a money market account and a savings account is how you can access your funds. Today, it's not uncommon to find money market accounts that allow you to write checks, make electronic transfers and use ATM and debit cards. With a savings account, on the other hand, you may need to take money out via electronic transfer or by calling the bank.
Savings account and a checking account.