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A bank deposit account that combines savings-style interest with limited check or debit access. It is a bank product, and it is FDIC insured.
Why It Matters
The important thing about a money market ACCOUNT is what separates it from a money market FUND — a distinction the near-identical names bury. An account is a bank deposit covered by FDIC insurance. A fund is an investment, and is not. People sometimes assume they hold one when they hold the other, which matters precisely when it matters most.
Key Points
- A bank deposit account — FDIC insured within the standard limits.
- Often allows limited checks or debit access, unlike plain savings.
- Not the same thing as a money market fund, despite the name.
Related Terms
Common Questions
A bank deposit account that combines savings-style interest with limited check or debit access. It is a bank product, and it is FDIC insured. The important thing about a money market ACCOUNT is what separates it from a money market FUND — a distinction the near-identical names bury. An account is a bank deposit covered by FDIC insurance.
The important thing about a money market ACCOUNT is what separates it from a money market FUND — a distinction the near-identical names bury. An account is a bank deposit covered by FDIC insurance. A fund is an investment, and is not. People sometimes assume they hold one when they hold the other, which matters precisely when it matters most.
A bank deposit account — FDIC insured within the standard limits.
Often allows limited checks or debit access, unlike plain savings.
Not the same thing as a money market fund, despite the name.