What is a Money Market Account​

A money market account or money market deposit account is a deposit account that pays interest based on current interest rates in the money markets.

Explanation:

A money market account is a savings account with some checking features. It typically comes with checks or a debit card and allows a limited number of transactions each month. Traditionally, money market accounts also offered higher interest rates than regular savings accounts. But these days, rates are similar. And money markets often have higher minimum deposit or balance requirements than savings accounts, so compare your options before picking one. Money market accounts are insured by the Federal Deposit Insurance Corp. (at banks) and the National Credit Union Administration (at credit unions), so you won’t lose your deposits even if the financial institution goes out of business.

PROS

 -Access funds more easily than with traditional savings accounts because of debit cards and checks, which might be helpful in an emergency.

 -Receive better rates than typical checking accounts offer.

 -Have a safe place to keep a large chunk of money, protected by FDIC insurance.

CONS

 -Funds might be too easy to spend.

 -Some accounts require high minimum balances to open or avoid fees.

 -In many cases, savings accounts pay just as much interest.

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