Money Market Account
A high-interest bank deposit account combining features of savings and checking accounts.
What is Money Market Account?
A money market account (MMA) is a type of deposit account at a bank or credit union that typically offers higher interest rates than standard savings accounts while also providing limited check-writing and debit card access. MMAs are FDIC-insured up to $250,000 and invest in short-term, low-risk instruments. They generally require higher minimum balances than regular savings accounts. Money market accounts are distinct from money market funds, which are investment products (not bank deposits) and not FDIC-insured, though both target short-term, liquid needs.
Example
An investor holding $50,000 in cash awaiting deployment uses a money market account paying 4.2% APY rather than a checking account at 0.01% — earning $2,100/year versus $5, while retaining quick access to funds.
Source: FDIC — Deposit Insurance