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Personal finance glossary

Money market account

Definition

A bank account blending savings-level interest with limited checking features, FDIC-insured at banks. A reasonable home for cash that wants slightly more access than a savings account.

Why it matters

Money market accounts fill the gap between checking and savings: near-HYSA rates with a debit card or checks for the rare moment you need the cash instantly.

Example

A freelancer keeps their quarterly tax reserve in a money market account: it earns competitive interest between IRS due dates, and estimated payments can be written directly from the account.

Related terms

This definition is educational, not financial, legal, or tax advice. U.S. rules and limits change; verify time-sensitive details with official sources. See our disclaimer.

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