A money market account is a savings account with a credit union or bank. Money markets feature a higher interest rate, higher required minimum balances, and a limited number of monthly withdrawals. Like a checking account, some money market accounts allow account holders to write a small number of checks per month.

Individuals should look for bank accounts insured by the FDIC and credit union accounts insured by the NCUA. This insurance provides peace of mind that the account holder will still have their money even if the bank goes out of business. Minimum account balances are usually around $1,000 to $2,500, so this is something an individual should consider, in light of how much money he or she will keep in the account.

Similar to savings accounts, money market accounts earn interest, which is often compounded daily and then paid to account holders monthly. Money market interest rates vary from one bank to the next because each is competing to get individuals to open accounts. In many cases, the more money an individual deposits into the account, the higher the resulting rate of interest.

Researching interest rates on money market accounts is most easily done using the Internet. There, individuals can find the rates charged by their local brick and mortar banks as well as banks that operate entirely online. They can also find recommendations from others regarding institutions with the most favorable money market interest rates.

Those interested in opening a money market account should do an online search to find the banks offering the highest rates of interest. Then, they should compare minimum balance requirements, permitted number of monthly withdrawals, and number of checks that can be written each month. Once the bank with the most favorable terms is found, it should be easy to open an account.

Keep learning more:

1. How To Find The Best Saving Account Rates


2. Best CD Rates: How To Find The Best CD Rates


3. Are CD Rates Even Worth It Anymore?


4. Do Not Put All Your Money In Stocks


5. How The Stock Market Works


6. Stocks 101: How to Invest in the Stock Market


7. Do Mutual Funds Outperform the Market?

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