What is a "money market" account?

What is a "money market" account?

Mitchell Freedman, CPA/PFS (CEO, MFAC Financial Advisors) gives expert video advice on: What kinds of bank accounts should I have?; How do I open a bank account?; How can I compare banks and the services they offer? and more...

Unlike a savings account which typically has a stated rate of interest, or a certificate of deposit which has a stated rate of interest and a duration, a money market account can be set up in such a way that you put your money in and take it out anytime you want, and the interest that will be paid on it will fluctuate depending upon what that bank is willing to pay. Money market accounts' interest rates fluctuate depending upon market conditions, and those fluctuations can occur even from day to day.