Money market account (MMA)
Also known as: MMA, Money market deposit account
A federally insured deposit account at a US bank that pays a competitive APY similar to a HYSA but may include limited check-writing or debit-card privileges. Distinct from a money market fund, which is a brokerage product and is not FDIC-insured.
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Money market accounts (MMAs) are deposit products at US banks and credit unions that bridge the gap between checking accounts (full transaction privileges, low yield) and savings accounts (limited transaction privileges, higher yield). MMAs are federally insured on the same terms as savings accounts and CDs — $250,000 per depositor per insured institution per ownership category under FDIC (banks) or NCUA (credit unions). The APYs on competitive MMAs in mid-2026 are typically similar to HYSA rates (roughly 3.4–3.8%, with the policy rate at 3.50–3.75%), and the products are often interchangeable from a yield perspective.
The structural difference between an MMA and a HYSA is transactional flexibility. MMAs historically came with check-writing privileges and sometimes a debit card; HYSAs typically did not. The Federal Reserve's Regulation D historically limited deposit accounts to 6 "convenient" transfers per month (with checking-account-style transactions counting), but the Federal Reserve suspended that limit in 2020 and the suspension has continued. As a result, the practical difference between an MMA and a HYSA has narrowed considerably; some banks have effectively merged the products in their lineup.
Money market accounts (MMAs) at banks must be carefully distinguished from money market funds at brokerages. The two products sound similar but are structurally different. An MMA is a deposit account, FDIC- or NCUA-insured up to federal limits, with a stated APY the bank can adjust. A money market fund (MMF) is a regulated mutual fund investing in short-term high-quality debt instruments — Treasury bills, commercial paper, repurchase agreements — that pays a variable yield based on the fund's underlying earnings. MMFs are SIPC-protected at the brokerage level (against broker failure, not market loss) but are not FDIC-insured. Both are considered very low-risk for retail use, but the insurance structure is fundamentally different, and the choice between them depends on whether you want bank-style federal insurance or brokerage-style securities exposure with same-day broker liquidity.
For most readers comparing options at competitive rates, MMA vs HYSA is largely a matter of operational preference and feature set. Some readers prefer an MMA's check-writing privilege for occasional large payments (a deposit on a house, a tax payment); others prefer the HYSA's tighter integration with online banking and budgeting tools. The yield is similar; the FDIC insurance is identical. The decision rarely materially affects financial outcomes. The decision between either of these and a brokerage money market fund (SPAXX, VMFXX) does affect insurance structure and is documented separately.
- HYSA (High-Yield Savings Account) A federally insured savings account at an online or hybrid US bank that pays a competitive APY — typically 10–20× the rate of legacy branch banks. The most underused high-ROI personal finance lever for most US households.
- FDIC insurance The Federal Deposit Insurance Corporation insures US bank deposits up to $250,000 per depositor, per insured bank, per ownership category. The structural guarantee that makes savings, checking, money market, and CD accounts at insured banks effectively risk-free up to the limit.
- APY (Annual Percentage Yield) The actual annualized return on a deposit account, taking compounding into account. Distinguishes meaningfully from "interest rate" only on accounts with intra-year compounding — which is virtually all US deposit accounts.
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