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Estimated read time: 7 minutes
Key takeaways
Money market accounts share features of savings and checking
Earn higher interest than regular savings accounts on average
Often come with checkwriting and debit cards
Best for large balances and short-term savings
What is a money market account?
A money market account (MMA) is a type of deposit account that earns interest on your balance. And as a deposit account, MMAs come with FDIC or NCUA federal deposit insurance.
On average, they offer higher interest rates than savings or checking accounts and provide some checking-like perks, such as checkwriting and debit card access. It’s a good option for those seeking better returns on their savings while maintaining a level of flexibility.
The catch that often comes with an MMA is the monthly fee. Many money market accounts charge between $10 and $100 per month, sometimes with the ability to waive the monthly fee by meeting a balance requirement. In contrast, traditional savings accounts don’t typically charge a monthly fee and usually don’t have hefty balance requirements to earn interest.
Money market accounts work very similarly to other deposit accounts.
In a nutshell, banks and credit unions pool your money with other customers’ funds in deposit accounts (MMA, checking, savings, etc.) and then lend those funds to borrowers. Interest is the incentive to keep your funds in the money market account.
On that same note, MMAs often have tiered interest rates. This means your balance can determine your interest rate. Typically, the more money you deposit, the higher the interest rate you may receive. The rates can vary depending on the institution and market conditions.
Unlike CDs, MMAs allow more flexibility with your money. While there are restrictions on the number of withdrawals and transfers you can make, you can still access your money relatively easily if needed.
Hot tip: Look for MMAs with no monthly fees or minimum balance requirements — some online banks offer both.
Earn interest with a high-rate account while accessing your cash through ATMs, debit, or checks. Plus, enjoy no-fee withdrawals at over 60,000 ATMs nationwide.
You can open a money market account at most traditional banks, credit unions and online banks. But not all MMAs are created equal — rates, fees and access features can vary a lot.
Here’s where you can start your search:
Online banks often offer the highest APYs and lowest fees since they have lower overhead.
Credit unions may offer competitive rates and more personalized service, though credit unions require becoming a member, which can require living or working in its service area.
National banks usually offer MMAs with convenient branch access, but their rates may not be as competitive as online banks.
Money market vs. savings vs. checking
Quickly compare average rates and features of MMAs, savings, certificates of deposit (CDs) and checking accounts.
You want to earn high APYs. Want a higher APY than what your traditional savings account is offering? Money markets typically have higher interest rates on average.
You need easy access to savings. Money market accounts typically allow checkwriting and debit card transactions, making them more accessible than CDs or other less liquid investment options.
You regularly have a large balance. Some MMAs require higher minimum deposits or balances to earn the best interest rates, making them ideal for people with large savings balances.
Hot tip: Consider using a money market account as your emergency fund. Not only could you earn more interest compared to an average savings account, but it may also be more accessible thanks to the debit card or checkwriting in the event of an emergency.
3 alternatives to money market accounts
If a money market account doesn’t sound like the right fit for you, there are several alternatives worth considering:
1. High-yield savings accounts
High-yield savings accounts, or HYSAs, offer much more competitive interest rates compared to their traditional counterparts. Online HYSAs usually don’t have withdrawal limits or monthly fees and typically offer the best rates, but you’ll lose out on physical branch access and possibly the ability to deposit cash.
If you have a lot of cash stashed away and you don’t need immediate or regular access to your funds, CDs can offer higher interest rates than MMAs. However, they lock your money in for a set period, and if you withdraw funds early, you’ll face early withdrawal penalties.
If you’re willing to take on a little risk, investing in stocks, bonds or exchange-traded funds (ETFs) may provide higher returns over time. However, these options come with greater risk compared to MMAs.
Narrow down top money market accounts by APY, monthly fees and more. For a closer comparison, tick the Compare box on multiple options to see benefits side by side.
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What is the Finder Score?
The Finder Score crunches over 250 savings accounts from hundreds of financial institutions. It takes into account the product's interest rate, fees, opening deposit and features - this gives you a simple score out of 10.
To provide a Score, Finder’s banking experts analyze hundreds of savings accounts against FDIC-reported national averages as a baseline. Accounts with rates well over the national average are scored the highest, while accounts with rates well below are scored low.
Yes, money market accounts are insured up to $250,000 by the FDIC (if offered by a bank) or NCUA (if offered by a credit union), providing the same level of protection as traditional savings accounts.
How much money do I need to open a money market account?
It varies by institution, but many MMAs require a minimum deposit, often between $1,000 and $5,000. Some accounts may offer lower or no minimum deposits.
Can I write checks with a money market account?
Yes, money market accounts often allow checkwriting privileges, though you are limited to six transactions per month. Some institutions may provide checks or offer debit cards for easier access to your funds.
Bottom line
A money market account can be an excellent option if you’re looking to grow your savings with a higher interest rate while maintaining easy access to your funds.
While there are some downsides, such as transaction limits and minimum balance requirements, the benefits of safety, flexibility and high rates can often outweigh the drawbacks. Before opening an MMA, it’s important to compare rates and fees from different institutions to ensure you find the best fit for your financial goals.
Bethany Hickey is the banking editor and personal finance expert at Finder, specializing in banking, lending, insurance, and crypto.
Bethany’s expertise in personal finance has garnered recognition from esteemed media outlets, such as Nasdaq, MSN, Yahoo Finance, GOBankingRates, SuperMoney, AOL and Newsweek. Her articles offer practical financial strategies to Americans, empowering them to make decisions that meet their financial goals. Her past work includes articles on generational spending and saving habits, lending, budgeting and managing debt.
Before joining Finder, she was a content manager where she wrote hundreds of articles and news pieces on auto financing and credit repair for CarsDirect, Auto Credit Express and The Car Connection, among others.
Bethany holds a BA in English from the University of Michigan-Flint, and was poetry editor for the university’s Qua Literary and Fine Arts Magazine. See full bio
Bethany's expertise
Bethany has written 459 Finder guides across topics including:
Find the best money market rates in 2025 with Quontic, American First Credit Union, Sallie Mae, Discover and more.
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We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
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