Is A Money Market Account The Best Place For My Savings?

You prioritized your financial savings goals, opened a high-interest savings account, and even automated deposits to build an emergency fund.

But now you’re hearing you may earn more money on your money by putting it into a money market account.

What the heck is a money market account? Is it a savings account or an investment product? Is it the best place for my money?

A Money Market Account Is:

A bit of a hybrid account, similar to a traditional savings account which pays interest on funds it holds, but with some benefits of a checking account-limited check writing and debit card transactions.

You can open a money market account (MMA) through a bank or credit union, and it will be insured by either the Federal Deposit Insurance Company (FDIC) or the National Credit Union Association (NCUA)

The FDIC’s Deposit Insurance Fund and the National Credit Union Share Insurance Fund (NCUSIF) protect your total deposits and any interest earned, up to $250,000 per FDIC-insured bank or NCUA-insured credit union.

Like a savings account, MMAs do not have limits on the number of deposits or in-person / ATM withdrawals you can make.