Whats a money market account?

Answer 1

A money market account is a type of savings account offered by banks and credit unions just like regular savings accounts. The difference is that they usually pay higher interest, have higher minimum balance requirements (sometimes $1000-$2500), and only allow three to six withdrawals per month. Another difference is that, similar to a checking account, many money market accounts will let you write up to three checks each month.

Answer 2

There are 2 different things that fit your question, Money Market Mutual Funds (MMMF) and Money Market Deposit Accounts (MMDA).

A MMDA is FDIC insured, offered by banks, and has a higher interest rate than most savings accounts.

A MMMF is not FDIC insured, and invests in short term commercial paper (i.e. 90 days IOUs companies use to finance inventory). Generally has higher yield than MMDAs.

I prefer MMMFs.

Answer 3

It's a source for loan money like for credit cards. When you use a credit card, the payment to the seller comes from the money market. Any money that is not going to loans is used to buy government bonds. These things are not government insured, but since the concept was invented, nobody has lost money, even during the worst times.

Answer 4

it's a place where you can put your money in, but it has to stay there for a fixed amount of time. as a result you get higher interest rates than you would putting your money in a savings or checking account.