How do money market accounts differ from regular savings accounts?

Answer 1

A money market account is very similar in nature to a savings account with the most significant difference being that you often have the ability to write checks from it. Most broker/dealers and mutual fund companies offer money market accounts in some form.

For small balances, a savings account is often more beneficial as some money market accounts can charge substantial fees unless a minimum balance is maintained. Some banks also impose restrictions on the number of withdrawals that are allowed.

Money market funds are stable funds, where if you deposit $1 you will get $1 back - this is known as the "Net Asset Value" (NAV) of the fund.

Be sure before you invest in any money market fund whether it is with your local bank or a broker/dealer or mutual fund that you thoroughly investigate fees, earnings, and whether or not the funds are insured.

Answer 2

A money market account works by having money invested like a savings account but getting the interest rates that are in the current money market. It usually requires a higher investment than a regular savings account.

Answer 3

The money market trades mostly in short-term securities that have a maturity of one year or less. These instruments are characterized by high liquidity and typically trade in high denominations

Answer 4

A money market savings account is a type of savings account that banks and credit unions offer, just like regular savings accounts, with one difference - the difference is that they usually pay higher interest and have higher minimum balance requirements, and typically only allow three to six withdrawals per month. They also usually allow up to three checks to be written each month.

Answer 5

They work like a regular savings account except they have a minimal balance requirement. They may gain more interest than a normal savings account.

Savings accounts are a great way to save and earn money! I have one, and I deposit money every paycheck into it, usually about 10 dollars. Then every so often, for me 4 times a year, I earn an interest on my income.

Answer 6

The means of determining interest rate.

Money market account interest rates are variable and track the money market. Savings account interest rates are usually fixed.