Money market accounts (MMAs) are a type of savings account that makes it easier to access cash when you need it. MMAs combine savings and checking features, allowing you to make deposits and withdrawals without penalty. Money market accounts can be opened at traditional banks, online banks, and credit unions. They offer set interest rates on your savings in a bank or credit union, while money market funds bundle relatively liquid investments such as stocks, bonds, and other securities.
Money market accounts offer higher interest rates than traditional savings accounts, although they may still be subject to minimum deposit requirements or fees. Money market accounts are FDIC insured, meaning that your deposits are protected up to a certain amount. They also offer higher interest rates than savings accounts and often have no minimum balance requirements.
Money market accounts offer a variety of features that are attractive for savers. These accounts are typically liquid, meaning that you can access your cash quickly. They also have higher interest rates than savings accounts, meaning that your money will grow faster.