What Is a Money Market Account and How to Get the Best Rates?

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These hybrid accounts can offer convenience and attractive interest rates

, which tracks roughly 275,000 rates at more than 11,000 banks and credit unions, and Buy Side from WSJ’s own research.A money market account is an interest-bearing bank account. At the end of the day, it looks and functions very much like a savings account, but with a few distinct features of a checking account, explains Ken Tumin, a senior industry analyst at LendingTree and the founder of DepositAccounts.com. “It’s up to the banks, sometimes, how they define it,” he says.

during the pandemic and now lets banks decide whether to limit withdrawals or not. It’s not uncommon for a bank to set a monthly limit and charge a fee for each additional withdrawal or transfer.pay about the same on your balance—which is to say, much more than a checking account. Online banks as of late October were offering top rates of 3% or more on money market and savings accounts, while typical checking accounts earned less than 1%, according to DepositAccounts.com data.

Money market accounts are deposit accounts, while money market funds are investment products. A money market fund is as low risk as an investment can get, but it’s still not as safe as a deposit account.

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