Glossary
Money market account
A money market account is an insured bank or credit union savings account that often pays a higher rate than basic savings and may come with checks or a debit card.
It is different from a money market fund, an investment sold by brokerages that is not FDIC insured. Money market accounts often require a higher minimum balance for their best rate.
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Related terms
- High-yield savings accountAn insured savings account that pays well above the national average APY, usually at online banks, while keeping your money available to withdraw.
- FDIC insuranceFDIC insurance protects deposits at insured banks up to $250,000 per depositor, per bank, for each ownership category, if the bank fails; credit unions have the same cover from the NCUA.
- APY (annual percentage yield)The percentage a deposit earns in a year, counting compounding: the figure banks must quote for savings accounts, money market accounts and CDs.
Sources: FDIC: Deposit insurance