A money market account (MMA) is a type of account offered by banks and credit unions that provides features similar to savings accounts and checking accounts. By combining features of both savings and checking accounts, money market accounts offer the consumer a convenient solution for short-term goals.

The primary benefit of a money market account is that it generally pays a higher interest rate than a regular savings account, making it an attractive option for those wanting to grow their money. Money market accounts usually offer debit cards, allowing you to withdraw money directly from your account, as well as a limited number of free check-writing privileges, allowing you to easily transfer money to other accounts.

However, it’s important to remember that money market accounts are intended for short-term goals and are not meant for long-term financial planning. Alternatives to MMAs include high-yield savings accounts and certificates of deposit, which may be more suitable for long-term investments. Additionally, many banks and credit unions now offer high-yield or high-interest checking accounts, which may offer better interest rates than money market accounts but will likely impose more restrictions and conditions.

When deciding which type of money account to open, consider your own financial goals and how you plan to use the account. Money market accounts are a great solution if you’re looking for a simple and effective way to grow your savings without having to worry about long-term planning or strict restrictions. If you’re looking for a long-term investment solution, however, it’s best to consider alternatives such as high-yield savings accounts or certificates of deposit.