arr
Close
What can we help you find?
    • Maximize Savings
    • Best Savings Accounts
    • Money Market Accounts
    • Best High-Yield Savings Accounts
    • Best Savings Accounts For Kids
    Calculators
    • Compound Interest Calculator
    • Savings Calculator
    • Retirement Lifestyle Calculator
    Top Reviews
    • MySavingsDirect Account Review 2025
    • Patriot Bank Account Review 2025
    • SFGI Direct Account Review 2025
    • Dime Community Bank Review 2025
    Helpful Topics
    • How to Earn More Interest on Your Money
    • What's Your ATM Withdrawal Limit?
    • How Much Does Tax Preparation Cost?
    • Savings Accounts That Compound Daily
    • Flexible Checking
    • Best Checking Accounts
    • Best Checking Account Bonus Offers
    • Best High Yield Reward Checking Account
    Calculators
    • Loan Apr Calculator
    • Interest Savings Calculator
    Top Reviews
    • Grasshopper Checking Account Review 2025
    • Found Checking Account Review 2025
    • First Horizon Checking Account Review 2025
    • BMO Checking Account Review 2025
    Helpful Topics
    • What Is a Brokerage Checking Account
    • Guide to Manage a Joint Checking Account
    • Overdraft Fees: Compare What Banks Charge
    • What Are Some Types of Checking Accounts
    • Premier CDs
    • Best CDs
    • Best 1-Year CDs
    • Best 18 - Month CDs
    • Best 2 - Year CDs
    Calculators
    • CD Calculator
    Top Reviews
    • American Express® CD Account Review 2025
    • U.S. Bank CD Account Review 2025
    • CIT Bank No Penalty CD Account Review 2025
    • American First Credit Union CD Review 2025
    Helpful Topics
    • What Is a Certificate of Deposit (CD)?
    • Are CDs FDIC Insured?
    • Best Investment Options
    • Best Online Brokerages
    • Best Robo Advisors
    • Best 401k Contribution Limits
    Calculators
    • Investment Calculator
    • Retirement Savings Calculator
    • Annuity Calculator
    Top Reviews
    • Linqto Review 2025
    • Gainbridge Annuity Review for 2025
    • SoFi® Auto Invest Review 2025
    • Marcus Invest Review 2025
    Helpful Topics
    • What Should My Asset Allocation Be
    • Stock Market Strategies for Beginners
    • What is a 401(k) plan
    • How to Start Investing With $100
    • Best Personal Loans
    • Best Debt Consolidation Loan
    • Best Home Improvement Loans
    • Best Personal Loans for Bad Credit
    Calculators
    • Personal Loan Calculator
    • Business Loan Calculator
    Top Reviews
    • Prosper Personal Loans Review 2025
    • Best Egg Personal Loans Review 2025
    • LightStream Personal Loan Review 2025
    • LendingClub Personal Loan Review 2025
    Helpful Topics
    • What is the Easiest Loan to Get Approved for
    • What Credit Score is Needed to Get a Loan
    • What are Personal Loans Best for
Logo
  • Savings
    Best Accounts
    • Best Savings Accounts
    • Money Market Accounts
    • Best High-Yield Savings Accounts
    • Best Savings Accounts For Kids
    Calculators
    • Compound Interest Calculator
    • Savings Calculator
    • Retirement Lifestyle Calculator
    Top Reviews
    • MySavingsDirect Account Review 2025
    • Patriot Bank Account Review 2025
    • SFGI Direct Account Review 2025
    • Dime Community Bank Review 2025
    Helpful Topics
    • How to Earn More Interest on Your Money
    • What's Your ATM Withdrawal Limit?
    • How Much Does Tax Preparation Cost?
    • Savings Accounts That Compound Daily
  • Checking
    Best Accounts
    • Best Checking Accounts
    • Best Checking Account Bonus Offers
    • Best High Yield Reward Checking Account
    Calculators
    • Loan Apr Calculator
    • Interest Savings Calculator
    Top Reviews
    • Grasshopper Checking Account Review 2025
    • Found Checking Account Review 2025
    • First Horizon Checking Account Review 2025
    • BMO Checking Account Review 2025
    Helpful Topics
    • What Is a Brokerage Checking Account
    • Guide to Manage a Joint Checking Account
    • Overdraft Fees: Compare What Banks Charge
    • What Are Some Types of Checking Accounts
  • CDs
    Best Accounts
    • Best CDs
    • Best 1-Year CDs
    • Best 18 - Month CDs
    • Best 2 - Year CDs
    Calculators
    • CD Calculator
    Top Reviews
    • American Express® CD Account Review 2025
    • U.S. Bank CD Account Review 2025
    • CIT Bank No Penalty CD Account Review 2025
    • American First Credit Union CD Review 2025
    Helpful Topics
    • What Is a Certificate of Deposit (CD)?
    • Are CDs FDIC Insured?
  • Investing
    Best Accounts
    • Best Investment Options
    • Best Online Brokerages
    • Best Robo Advisors
    • Best 401k Contribution Limits
    Calculators
    • Investment Calculator
    • Retirement Savings Calculator
    • Annuity Calculator
    Top Reviews
    • Linqto Review 2025
    • Gainbridge Annuity Review for 2025
    • SoFi® Auto Invest Review 2025
    • Marcus Invest Review 2025
    Helpful Topics
    • What Should My Asset Allocation Be
    • Stock Market Strategies for Beginners
    • What is a 401(k) plan
    • How to Start Investing With $100
  • Personal Loans
    Best Accounts
    • Best Personal Loans
    • Best Debt Consolidation Loan
    • Best Home Improvement Loans
    • Best Personal Loans for Bad Credit
    Calculators
    • Personal Loan Calculator
    • Business Loan Calculator
    Top Reviews
    • Prosper Personal Loans Review 2025
    • Best Egg Personal Loans Review 2025
    • LightStream Personal Loan Review 2025
    • LendingClub Personal Loan Review 2025
    Helpful Topics
    • What is the Easiest Loan to Get Approved for
    • What Credit Score is Needed to Get a Loan
    • What are Personal Loans Best for
  • What can we help you find?
Get Rates Near You!
Please enter valid zip code
Get Rates
Get Rates
Updated April 5, 2024
Why MoneyRates is your trusted source
twitter facebook

Money Market Account 101

Learn the fundamentals of Money Market Accounts at MoneyRates. Discover how they provide higher interest rates with flexibility and security for your savings.
Written by Andrew Freiburghouse
Financial Expert
mm
Edited by Kristin Marino
Managing Editor
Why MoneyRates is your trusted source

Money market accounts are similar to savings accounts but often pay higher interest and may carry more restrictions, such as a higher minimum balance requirement.

The goal for account holders in money market accounts is often to receive more interest than an ordinary savings account can provide but keep the minimal risk that comes with Federal Deposit Insurance Corporation (FDIC) insurance.

These accounts are historically favored by conservative investors who seek a guaranteed return on their money. They are the “boring” part of many balanced investment portfolios.

Money Market Accounts and FDIC Insurance Limits

In today’s financial markets, safety is one of the primary advantages of a money market account. An FDIC-insured money market account is protected by FDIC insurance limits up to $250,000 per bank, per depositor, making it as safe and sober as financial products come.

Many money market accounts are hard to differentiate from savings accounts, though the ability to write checks is one way that some banks distinguish the two. However, the security of both accounts is typically identical. Not one person has lost FDIC-insured funds since the agency was created in 1933.

Money market accounts as safer investments

Money market accounts are a perennial favorite of people who take a skeptical view of more dynamic and riskier investments such as stocks. A money market account is perfect for someone who wants to preserve capital rather than try to grow it rapidly and perhaps lose it rapidly. When the stock market is plunging down and then spiking up, money market account holders sleep peacefully, knowing their money is safe.

Where to Find the Best Money Market Accounts

We’ve made finding the bank with the best money market account to meet your goals easy by compiling the list below. Explore our listing and find the best money market account for you.

Money Market Rates vs. Savings Account Rates

Money market accounts have a higher national average interest rate than savings accounts. According to the latest FDIC weekly national rates, the national average money market rate is 0.64% compared to the average savings account rate of 0.57%. 

How to Access Funds in a Money Market Account

Money market accounts don’t require you to leave your money in for any longer than you want to, and there’s no penalty if you take it out (unlike most certificates of deposit).

With the exception of the electronic transactions governed by Federal Regulation D, these accounts are liquid, meaning you can move money in and out of them when you like.

Many banks will even give you an ATM card to do exactly that. Depending on the bank, you may also be able to write up to six checks per month out of the account.

Money Market Account Liquidity vs. Other Investments

Again, this may not seem like that big of an advantage until you compare the liquidity of a money market account with the liquidity of the other places you can put your money. Real estate, for example, is among the least liquid types of investments, since it can take months or even years to get your cash back from this type of investment. Money market accounts are at the opposite end of the spectrum from real estate and are also more liquid than stocks and bonds.

Money Market Accounts vs. Money Market Funds

Money market accounts should not be confused with money market funds, but they often are. Money market funds are more like mutual funds. They are an investment in the debt market. They are not backed by FDIC insurance and you cannot withdraw your money as easily.

If you think a money market account may be a good choice for you, please review the options on the MoneyRates money market accounts page.

Andrew Freiburghouse
Contributor Writer
Andrew Freiburghouse brings a wealth of tax expertise to MoneyRates, drawing on seven years as a junior partner at Pronto Income Tax of California, Inc., where he prepared around 7,000 tax returns. His exceptional skills extend to representing clients before the IRS, notably reducing a taxpayer’s debt from $72,000 to $700. Now based in Brooklyn, NY, Andrew is leveraging his extensive experience to establish his own tax practice, continuing his commitment to providing exceptional financial guidance.
Why MoneyRates is your trusted source
At MoneyRates, we rate a range of banking products, including savings, checking, CD, money market, investment, retirement accounts, and loans. For each account we evaluate, we assign a star rating ranging from 1 (poor) to 5 (perfect) based on a set of key factors. These factors include interest rates, fees, accessibility, customer service, user experience, money management tools, and technology. By considering all these factors, we aim to provide consumers with a clear and accurate picture of the products they are considering, allowing them to make informed decisions about their finances. Our reviews are unbiased and thorough, focusing on consumer needs. For details, see our Editorial Policy.
Get Rates Near You!
Please enter valid zip code
Get Rates
top-reviews RELATED ARTICLES
Money Market Funds vs. Money Market Accounts
By Richard Barrington
Tiered Money Market Accounts: How to Get the Highest Rate
BY Francine L. Huff
6 Factors Affecting Savings & Money Market Rates
BY Richard Barrington
6 Ways to Protect Against Investment Scams
BY Richard Barrington
When Opening Multiple Money Market Accounts Is a Smart Move
BY Richard Barrington
Vio Bank Money Market Account Review 2025
BY Rebecca Lake
A Guide to Incremental Investing: A Beginner's Strategy
BY Richard Barrington

Home » money-market-account » Money Market Account 101

About us
Contact us
California -
Do not sell my info
Privacy Preferences
Terms of Use
Privacy Policy
California - Do not sell my info
© 2025 MoneyRates
twitter facebook
twitter facebook