Money Market Account

A savings account which shares some of the characteristics of a money market fund and are insured by the Federal government.

Money market accounts offer many of the same services as checking accounts although transactions may be somewhat more limited. These accounts are usually managed by banks or brokerages, and can be a convenient place to store money that is to be used for upcoming investments or has been received from the sale of recent investments.

While they are very safe and highly liquid investments, money market accounts offer a lower interest rate than most other investments.