A type of savings account. Like other savings accounts, money market accounts through a bank are insured by the federal government. Money market accounts offer many of the same services as checking accounts although transactions may be somewhat more limited. These accounts are usually managed by banks or brokerages, and can be a convenient place to store money that is to be used for upcoming investments or has been received from the sale of recent investments. They are very safe and highly liquid investments, but offer a lower interest rate than most other investments.

Money Market accounts usually offer a slightly higher rate of return than savings accounts while still providing safety and liquidity.