Money Market Accounts United States

In the US, similar to savings accounts, a money market account is a type of bank account consumers can store excess funds for saving. The rates between a savings account and money market account can be different because when a retail banking customer decides to deposit money into a savings account, a bank can be limited to what they can do with the money in this type of bank account. However a money market account has looser restrictions for a what a bank can invest this money into, although restrictions still apply as both savings accounts and money market accounts are both FDIC insured . Note that due to Basel 3 regulations coming into effect, banks will favour retail deposits over institutional investments and will seek to favor funding that is invested for a year or more rather than short-term funding from institutional investors.

Compare Money Market Accounts in the USA