A money market account (MMA) is a deposit account that blends features of savings and checking: it typically pays a higher interest rate than a standard savings account, while sometimes including check-writing or debit card access that a savings account doesn't offer.
How it differs from a regular savings account
| Money Market Account | Standard Savings Account | |
|---|---|---|
| Interest rate | Often higher, especially at online banks | Typically lower |
| Check-writing / debit access | Often included | Rarely included |
| Minimum balance | Often higher than savings | Usually low or none |
| FDIC insured | Yes, at FDIC-member banks | Yes |
What it's not
Don't confuse it with a money market fund
A money market account (a bank deposit product) is FDIC-insured and completely different from a money market mutual fund (an investment product). The similar names cause real confusion — only the account version carries deposit insurance.
When it's worth using
- You want a better rate than a checking account but still want occasional check-writing or debit access.
- You can comfortably maintain the minimum balance most MMAs require to avoid fees.
- You're holding a mid-sized emergency fund and want it earning more without locking it up like a CD would.
For many people today, a high-yield savings account at an online bank offers a comparable or better rate with a lower minimum balance, which makes the check-writing feature the real deciding factor between the two.
Fees to watch for
- Monthly maintenance fees if your balance drops below the required minimum, which can be $2,500 or more at some banks.
- Excess transaction fees if you exceed the bank's monthly limit on transfers and withdrawals from the account.
- Lower introductory rates that reset to a much smaller ongoing rate after a promotional period — always check the rate after any intro window ends.
