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Money Market Accounts

This is a kind of savings account offered by a bank or brokerage company. Because you must deposit a required amount in the account, money market accounts usually pay more interest than a regular savings account.


The FDIC insures bank money market accounts, so if you have under $100,000 in your account, your money is safe.


Unlike a CD, you may withdraw money at any time. In fact, most bank money market accounts come with checkbooks. You may write a few checks each month to make purchases or pay bills. However, money market accounts are not meant to be a checking account.


There is no fixed interest rate. Interest floats up and down from day to day, but it usually earns more than a regular savings account.


Unlike a savings account, you usually have to deposit a certain amount of money to get one of these accounts. Sometimes you also have to keep a certain amount in the account.