What is a money market account?

A money market account is considered a type of savings account that typically offers higher interest rates compared to traditional savings accounts. This higher yield is often due to the fact that money market accounts may require a higher minimum balance to open and maintain.

In addition to potentially offering better interest rates, money market accounts also generally come with limited check-writing capabilities, allowing account holders to write a limited number of checks each month while still providing easy access to funds. This combination of features makes money market accounts an attractive option for individuals looking to earn more on their savings while having some liquidity.

A traditional savings account does not offer the same level of interest rates, and checking accounts generally do not provide any interest at all. Investment accounts, while they can carry higher risks and offer the potential for returns, do not function in the same way as a money market account, which blends features of savings and limited access to funds.