A money market account (MMA) is a financial product offered by banks and credit unions. It combines features of both savings and checking accounts, typically providing higher interest rates than regular savings accounts.
MMAs require a minimum balance and may limit the number of monthly transactions. They offer liquidity and check-writing capabilities, making them suitable for short-term savings and emergency funds.
FDIC or NCUA insurance protects deposits in MMAs, providing account holders with security. While MMAs offer better interest rates, they may have higher minimum balance requirements compared to traditional savings accounts.