What is a Money Market Account?
Money market accounts are another type of savings account that can help you reach your financial goals. This type of account is similar to a certificate account because they are generally higher-earning interest accounts compared to standard savings accounts. If you would like to compare certificates and money market accounts, read our article on certificates here.
Where money market accounts differ from certificate accounts is through the liquidity of the money in the account. Or how easy it is to withdraw the money from the account. Money Market Accounts don’t have maturity dates. Since you can take out your money whenever you please, there are normally limits on how many withdrawals you can make monthly. They also often have minimum balances that need to be met to avoid fees. Another way that money market accounts differ from certificate accounts is through deposits. With a money market account, you can deposit money whenever you please.
If you’re in the market for a new savings account, there are many options that you can choose. Read our article on savings accounts for the full breakdown of each account here. Since there are so many options, money market accounts seem to get lost, and many people tend to forget about them. If you are looking to open a high earning account, a money market account might be a good option for you.