Money Market Account

Offered by full-service brokers, these are similar to checking accounts but usually pay higher rates. Minimum deposit levels are higher than checking, and access to the account may be limited.

These bank savings accounts normally pay interest at rates comparable to those offered by money market mutual funds or money market separate accounts offered under a variable annuity contract.

One appeal of money market accounts is that they have the added safety of Federal Deposit Insurance Corporation (FDIC) protection, up to a limit of $100,000 per depositor.

One drawback may be that some banks reduce the interest they pay or impose fees if your balance falls below a specific amount.

Money market accounts may offer check writing and cash transfer privileges, although there are usually limits on the number of withdrawals or transfers you can make each month.

A type of investment in which funds are invested in short term securities.