A money market account (MMA) is a bank or credit union deposit account that typically earns a higher interest rate than a standard savings account, while keeping your money accessible. It's FDIC/NCUA insured and often comes with limited check-writing or debit privileges.
A money market account (MMA) sits between a checking account and a high-yield savings account. It's a federally insured deposit account — covered by the FDIC at banks and the NCUA at credit unions — that earns competitive interest while offering limited transaction access. Many MMAs include a debit card or check-writing capability, which most savings accounts don't.
The interest rate (APY) on a money market account is often higher than a standard savings account at the same institution, though it varies widely. MMAs typically require a higher minimum opening deposit or minimum balance to earn the top rate or avoid fees — commonly $1,000–$10,000. The CFPB's deposit account overview outlines the distinction between MMAs and savings accounts.
A money market account at a bank is not the same as a money market mutual fund offered by a brokerage or investment company. A money market account is a deposit product — it's FDIC/NCUA insured. A money market fund is an investment product — it is not federally insured and is not guaranteed to hold its $1-per-share value, though it rarely loses value. If your account is at a brokerage, check whether you're looking at a fund or a deposit account.
MMAs work well for emergency funds, short-term savings goals, or cash reserves where you want both competitive interest and the ability to access funds occasionally without penalties. For money you won't need for 6–12+ months, a certificate of deposit may offer a higher fixed rate in exchange for locking up the funds.