What Is a Money Market Account?
A Money Market Account (MMA) is a savings account that typically offers higher interest rates than regular savings. MMAs often require higher minimum balances ($1,000-$25,000) but provide FDIC insurance, check-writing privileges, and debit card access. They combine the safety of savings with slightly better returns.
MMA vs Savings vs CDs
MMAs offer higher APY than regular savings (4-5% vs 0.5-1%) with more flexibility than CDs. Unlike CDs, you can withdraw without penalty. However, MMAs may limit transactions to 6 per month. They are ideal for emergency funds and short-term savings goals.