Money market account.
In plain English
A money market account (MMA) is a savings account offered by banks and credit unions, FDIC-insured up to $250,000 per depositor per bank. MMAs typically pay slightly higher rates than a basic savings account and may include limited check-writing privileges or a debit card. The 'money market' name reflects that the bank invests deposits in short-term, very safe debt; from the customer side, it acts like a savings account.
01Why it matters
For most savers, an MMA at a competitive bank does the same job as a high-yield savings account and is fully FDIC-insured. The branded HYSA category from online banks (Marcus, Ally, Discover) is often where the better rates sit, but a competitive MMA at a local credit union can match them.
02The math, step by step
An MMA at an online bank might pay 4.5% APY in 2024-2025 with a $1,000 minimum and limited check writing. The same bank's basic savings account might pay 0.5%. Same FDIC insurance, same bank, very different yields, because the bank steers higher balances into MMA branding.
03What this is NOT
A money market account is a bank product, FDIC-insured. A money market fund is an investment fund (held at a brokerage), not FDIC-insured. Both are very safe; only the MMA carries explicit federal deposit insurance.