What Is a Money Market Account?

Money market accounts offer higher interest rates than traditional checking and savings accounts, but come with restrictions.

A woman stands with a chalk money tree drawing on a blackboard.
(Image credit: Getty Images/iStockphoto)

Money market deposit accounts (MMDAs) blend features of traditional savings and checking accounts. They're useful tools to understand as part of your financial plans. 

MMDAs will pay you higher interest rates than some checking and savings accounts do, but lack the unrestricted access to your money afforded by traditional accounts and have higher required minimum deposit levels. Money market accounts are meant for savings, not for funds to which you need ready and repeated access. 

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Donna LeValley
Personal Finance Writer

Donna joined Kiplinger as a personal finance writer in 2023. She spent more than a decade as the contributing editor of J.K.Lasser's Your Income Tax Guide and edited state specific legal treatises at ALM Media. She has shared her expertise as a guest on Bloomberg, CNN, Fox, NPR, CNBC and many other media outlets around the nation.