How do money market accounts work?

Answer by  HP4life (63)

A money market account is basically a savings account that earns a bit more interest. However, during this economic downturn, the rates are not as high as a few years ago. Another feature is that you can have checks with this account, but you can only write a certain amount per federal regulations.

Answer by  maxwell (289)

Money Market accounts usually limit the number of withdrawals per month. They usually pay a little higher interest rates than typical savings accounts. Money Market accounts usually require a minimum balance (for example $250.00).

Answer by  amswplusone (652)

A money Market account is somewhere between a checking accout and a savings account in practical terms. Basically you typically get really good interest compared to standard bank accounts, but you're only allowed a set number of withdrawals over a given time period. So it's a good option to gain interest, but not for an everyday checking account.