Rate Trends

Money Market

What is a Money Market Account?

A money market, or money market deposit account, is a type of savings account offered by banks and other financial institutions that often pay higher interest rates than typical savings accounts. These accounts often come with minimum balances. However, unlike savings accounts, you can write checks against your money market account, although it is often limited to only three withdrawals per month.

As with most savings accounts, a money market account is insured by the Federal Deposit Insurance Corporation (FDIC). This means that even if the bank or credit union go out of business, the money is insured up to $500,000 depending on your account type.

How to Read the Average Rate Chart

The interest rate offered by money market accounts are based on a number of factors. When banks need more deposits they will often pay higher interest rates to entice more customers. They will often pay higher interest rates for higher deposits amounts as reflect in the chart above.