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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Money Market Account  

Definition 1.

A savings account that offers the competitive rate of interest (real rate) in exchange for larger than normal deposits.
 

Definition 2.

A savings account which shares some of the characteristics of a money market fund. Like other savings accounts, money market accounts 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.
 
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