What is a money market account?

@andy 

A money market account is a type of interest-bearing bank account that typically offers a higher interest rate compared to a regular savings account. It is offered by banks and credit unions and combines the features of both savings and checking accounts.

Money market accounts typically have a minimum balance requirement and limited monthly transactions. They also provide check-writing capabilities, ATM access, and may come with a debit card. Interest earned on the account is usually compounded daily or monthly and is based on the current market rates.

Money market accounts are considered safe investments as they are insured by the Federal Deposit Insurance Corporation (FDIC) up to certain limits (typically $250,000 per depositor per insured bank). However, they may have lower interest rates compared to other investment options like stocks or bonds.

These accounts are ideal for individuals looking to earn higher interest while maintaining access to their funds. They are often used for short-term savings goals, emergency funds, or as a place to hold cash temporarily.

@andy 

Overall, a money market account offers a balance between earning interest and having access to funds, making it a popular choice for individuals looking to earn a bit more on their savings without taking on too much risk.