Key Takeaways
- A money market account includes features of both checking and savings accounts.
- A money market account may be a good choice if you’re saving toward a short-term goal.
- Review fees, balance requirements and transaction limits before opening an account.
Saving money is something most people agree is important. Whether you’re saving for emergencies, a big purchase, or education, there’s plenty of advice out there. We believe putting money in the bank is a smart way to save, and one option to consider is a money market account (MMA).
An MMA is a type of account offered by banks and credit unions that combines features of savings and checking accounts, including:
- MMAs usually offer higher interest rates than traditional savings accounts. However, rates are variable and can rise and fall depending on market conditions.
- Unlimited deposits.
- Debit cards for purchases and ATM withdrawals.*
- Check writing privileges.
Because they’re designed for saving, MMAs can limit the number of transactions you are allowed to make each month. In addition, most banks require a minimum initial deposit to open and require you to maintain a certain balance level to avoid fees.
| Money Market Account | |
| Advantages | Disadvantages |
| Higher interest rates | Limited transactions |
| Debit card access* | Minimum balance requirements |
| Check writing | Potential fees |
An MMA may be a good choice for you if you’re saving toward a specific goal like a new car or a down payment on a house. You typically earn more interest than a standard savings account and you can access your money if needed. Check out Lake City Bank’s savings options here.
*Varies by institution
