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What is a Money Market Account?

What is a Money Market Account? Blog image
Affinity FCU Blog
By: AffinityFCU

A money market account (MMA) is a deposit account offered by credit unions and banks. It has features of a savings account and a checking account. For example:

  • You can write checks and use a debit card for spending or paying bills. (like checking accounts)
  • You may be limited to six withdrawals or transfers per month. (like savings accounts)
  • MMAs are insured by the FDIC or National Credit Union Share Insurance Fund (NCUSIF) for up to $250,000. (like checking and savings accounts)
  • You can earn interest on balances. (like checking and savings accounts) In fact, MMAs tend to pay higher interest than checking and savings accounts, but they might require a higher initial deposit and a higher minimum balance.

How can I open an MMA?

You can start by shopping around for the highest annual percentage yield (APY), making sure to pay attention to any minimum opening deposit requirements and minimum balance requirements. Check out Bankrate’s 5 steps to open an MMA.

Is an MMA the same thing as a money market mutual fund?

No, they are different. A money market mutual fund is considered an investment account, while an MMA is a deposit account. Money market mutual funds are offered by banks, brokerage firms and mutual fund companies, and they follow different regulations. Another big difference is that even though money market mutual funds are considered low risk, they are not insured by the FDIC or NCUSIF.

Visit to learn more about MMAs.