There are two major financial products with similar names; Money Market Accounts & Money Market Funds. While they may share the same name they are very different products.
A Money Market Account is a type of savings account. They usually pay
higher interest rates, have higher minimum balance requirements, and
only allow 3 to 6 withdrawals per month. The money in a money market
account is insured by the F.D.I.C.
A Money Market Fund is a low-risk mutual fund designed to earn interest for investors and act as a cash alternative. They are a high liquidity investment that can come with some tax advantages depending on how it is managed.
Both are great ways to earn higher interest rates when you are saving money and are both low investments.
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You can trust that we maintain strict editorial integrity in our writing and assessments; however, we receive compensation when you click on links to products from our partners and get approved. Here's how we make money. Money market accounts are a safe place to stash your savings at a competitive interest rate while providing easy access to your funds.