Money Market Account

What is a money market account and how does it fit into your financial plan? Learn to compare yield to other savings and investment vehicles and where the best money market accounts are to be found.
Frequently Asked Questions
  • How are money market funds regulated?

    Money market funds, distinct from money market deposit accounts, are a type of mutual fund that are regulated by the Securities and Exchange Commission (SEC). Regulations were significantly updated in 2016 that notably include establishing a floating net asset value (NAV) for funds vs. the previous fixed net asset value of $1 per share.

  • What is the difference between money market savings and money market checking?

    Money market savings accounts are deposit accounts rather than transaction accounts, though they do allow up to six withdrawals per month. Money market savings and checking accounts both pay variable interest. Money market checking accounts, also called high-yield checking accounts, have minimum checking transaction and direct deposit requirements, unlike money market savings accounts.

  • What are some misconceptions about money market accounts?

    Money market accounts are often confused with money market funds, which are a type of mutual fund. Other misconceptions include that money market accounts protect deposits from inflation, which they do not, and deposits are protected from bank failure regardless of amount. As with other types of deposits, money market accounts are only protected up to $250,000 per account.

  • What are examples of money market funds?

    Money market funds are a type of mutual fund. Some types of money market funds include U.S. treasury funds, U.S. Government and Agency funds and tax-free municipal money funds. Another type of money fund is a diversified taxable money fund that invests in such things as commercial paper and repurchase agreements offered by U.S. and foreign corporations.

  • Are money market accounts safe?

    Money market savings and checking accounts, such as those offered by commercial banks, are safe as they are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account.  Money market funds are mutual funds and as such are not insured by the FDIC.  Most, however, invest in U.S. government securities and are therefore backed by the full faith and credit of the United States government.

Key Terms

Explore Money Market Account

Getting to Know the Money Market
What Are Some Examples of Money Market Funds?
close up of man hand with digital tablet analyzing growth charts
Who Uses a Collateralized Borrowing and Lending Obligation (CBLO)?
Investor uses laptop to analyze stock market data.
4 Top Money Market ETFs for Preserving Capital
Introduction To Money Market Mutual Funds
Woman writing in a check book.
Comparing Money Market Account and High-Interest Checking Account
Small Box in a Newspaper Containing Interest Rates Info
Money Market Yield
Financial data with globe in foreground.
Johannesburg Interbank Average Rate (JIBAR)
Breaking the Buck Definition
A man pointing at investment chart on laptop.
Why Money Market Funds Break The Buck
Rolled up bills on stacks of coins.
Are Money Market Accounts and Money Market Funds Safe?
Money Market Regulation Changes: What You Need to Know
Interbank Call Money Market
Hot Money Definition
What Is a Retirement Money Market Account?
What does it mean to have dry powder?
How Liquid Are Money Market Accounts?
What Does Money Market Account Xtra (MMAX) Mean?
The Midsection of Businessman Using Calculator and Laptop at Desk
Institutional Deposits Corporation (IDC)
Money Market Accounts: 5 Misconceptions
What Are the Benefits of Investing in a Money Market Fund?
Money Market Mayhem: The Reserve Fund Meltdown