This type of account is an interest-bearing account that typically pays a higher interest rate than a savings account, and which provides the account holder with limited check-writing ability.
Interests are paid based on current interest rates in the money markets and it usually requires a higher minimum account balance than the normal savings account.
It is typically able to offer higher annual percentage yields than other accounts as the vehicles invest in a variety of options from which traditional passbook accounts are restricted.
Money market accounts fund minimums to establish an account vary among financial institutions as the case may be.
Eschewing brick-and-mortar options for an electronic market presence, online banks are able to offer higher rates through reduced costs.

A money market accounts are
interest-bearing account that
typically pays a higher interest
rate than a savings , and
which provides the account
holder with limited check-writing
ability. A market account
thus offers the holder of the account
benefits typical of both savings
and checking accounts. This type
of account is likely to require a
higher balance than a
account of savings and is Fed. Deposit
Insurance Corporation
are
typically able to offer higher
annual percentage yields than
savings as the vehicles
invest in a variety of options
from which traditional passbook
accounts are restricted. Banking
institutions provide access to
insured money deposit
accounts (MMDA). MMDA’S offer
FDIC backing and the portfolios
typically invest in short-term,
liquid securities. They are able to
offer a higher interest rate by
requiring a higher minimum
balance, and by placing
restrictions on the number of
withdrawals the holder
may take over a given period of
time.