1. Banking 101

Money Market Deposit Accounts

The money market is a segment of the financial market where financial instruments with high liquidity and very short maturities are traded. It is considered a safe place to put money due to the highly liquid nature of the securities and their short maturities. While money market investment accounts are not without risk, money market deposit accounts are virtually risk-free because they are FDIC insured, just like checking and savings accounts. Money market deposit accounts should not be confused with money market mutual funds, which are offered by investment companies and are not FDIC insured.


The number of FDIC-insured financial institutions in June 2021, according to the FDIC.

Money market deposit accounts tend to have higher minimum balance requirements than regular or online savings accounts. This minimum usually ranges from $100 to $2,500. There may be a monthly fee associated with this type of savings account. The interest paid will be higher than that on a regular savings account balance, but possibly less than an online savings account would pay. For example, as of June 28, 2021, CIT Bank, an online-only bank, paid 0.45% APY on money market account balances and 0.25% APY on high-yield savings account balances. From a functional standpoint, you may not notice much, if any, the difference between a money market deposit account and a regular or online savings account.

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