- Money market accounts (MMA) differ from a money market. These accounts act as a savings account, which offer a competitive interest rate in hopes of a larger-than-normal deposit. An MMA may be insured if offered by an FDIC-participating bank or financial institution.
- A money market fund is an investment fund that invests only in money markets. These funds are low risk, low return investments, and are offered by mutual funds and banks. As a mutual fund, money market funds are not insured. However, if offered by a FDIC-insured bank, your money market fund may be insured.
- An FDIC account is one that meets the requirements to be insured by the Federal Deposit Insurance Corporation. The bank offering money market accounts and money market fund services must be a participant of the FDIC program to be insured.
- Money market accounts and money market funds are intended to be a short-term investment options and are very liquid. You can withdraw your money or make a deposit and have it available immediately.
- Consult your financial planner or adviser before investing in money markets or money market funds.
Money Market Accounts
Money Market Funds
Importance of the FDIC
Important Fact
Warning
Source...