What is the difference between a money market and a personal checking account?

Question

What are the benefits to one over the other if you can write checks off of both?

Answer 1

You're right... there's really not much of a benefit either way nowadays. I think when you look at fees charged for services and the interest being paid, it's probably an easy decision. Some money markets are NOT FDIC insured however... whereas personal checking accounts are FDIC insured.

Answer 2

A money market draws better interest. It is more like a savings account that you get checks with. But there is a limit on the checks you can write monthly with a Money Market. (about 6 per 3 months) You have unlimited check writing with a checking account. Checking accounts don't make the interest that MM's do.

Answer 3

Money market accounts generally pay a higher rate of interest than a typical checking account. You are limited to writing 3 checks per month out of your money market account (this is a federal regulation).

Money Market accounts are offered by banks, credit unions, and brokerage firms. They aren't mutual funds, but are often part of a brokerage account because people have dividends/interest paid into the money market fund so they can then turn around and write checks.

Answer 4

A true money market mutual fund (not at a bank) earns higher interest than a cking acct if the cking acct even earns interest. Get a schwab.com acct & see how all your finances can come together. There is no seperation between investing & living (paying bills, saving, etc). That is all in people's minds. Can get cks & debit card so access to funds always there but can have some hope for your future. In a bank you are always losing purchasing power after taxes & inflation whther you can see it or not.

Answer 5

Money markets are mutual funds. They pay better interest. Yes you can write checks off of both. Sometimes money markets will require minimum balance of around $500. Look around.
Sometimes people look at our checks and don't want to take them because they aren't written off of local banks.

Answer 6

Money market accounts can make you more money in the long term.