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December 2023: Best Money Market Accounts from Our Partners
A money market account (MMA) or a money market deposit account (MMDA) is a type of bank account that pays interest for keeping extra money in your account. They are especially useful for large, infrequent expenses or emergency situations. Many banks and credit unions offer money market account options either in person or online. The highest interest rates on money market accounts are offered online, so consider opening one of the accounts below.
MONEY MARKET ACCOUNTS
What is the typical interest rate range I can expect from MMA accounts, and do these rates vary based on the bank or credit union?
Interest rates on MMA accounts can vary depending on several factors, including the institution and current market conditions. On average, MMA interest rates range from 0.1% to 0.5%, but some accounts may offer higher...Read more
What are money market accounts?
A money market savings account (MMSA, also MMA) is quite similar to a regular savings account, with a few subtle differences. Most traditional banks and online institutions offer both savings accounts and money market...Read more
What is the difference between money market accounts and savings accounts?
A money market account is a deposit account offered by banks and credit unions that combines the best features of both savings and checking accounts. A savings account is a regular account that typically pays a modest...Read more
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money market account: WHAT
YOU NEED TO KNOW?
An MMA is a high-interest savings account that also has some of the features of a checking account. This type of account is not the same as money market mutual funds, which are investment securities, not bank accounts.
How does a money market account work?
A money market account works similarly to a typical savings account. You deposit your money into the account and start earning interest on your savings. Your money is available whenever you want via a checkbook or a debit card, making it easy to access your funds.
The interest paid by MMA is slightly higher than a regular savings account. It's also often tiered, meaning that the higher your balance is, the higher your interest rate will be.
However, there are some restrictions. They might require a minimum balance to receive the highest savings interest rate. Often, banks limit the number of transactions or withdrawals you can do in a month. These include purchases and transfers, though ATM withdrawals are not capped.
One of the biggest benefits of a money market account is that the funds in the account are typically FDIC-insured, meaning that your money is safe and protected up to the federal limit.
How to choose a money market account?
If you're thinking of opening a money market account, it's important to keep in mind some basic things. Banks are free to set their own terms to MMAs, so pay attention to interest rates, the deposit required and whether they might charge fees.
A money market account typically requires a higher minimum balance than traditional savings accounts. Some accounts are free as long as you maintain the minimum balance. However, if the balance falls below this limit, then you will have to pay the fee.
Money market accounts can be a good option for people who are looking to save money for specific short-term goals, and not planning to save for the long term.
MONEY MARKET ACCOUNTS🜂
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