I’ve long been a proponent of each person having a savings account ^[2] but they have some drawbacks. Chief among them are the inaccessibility of your cash and the dismal interest rates – just slightly above the “keeping it under the mattress” rate. Is there a better place to park your money? Is there a better place to keep your emergency fund ^[3] than just a savings account ^[2] — particularly one that earns little to no interest?

Consider a money market account!

A money market account ^[4] is a type of savings account that gives you better access to your money. It’s a savings account with checks! Federal law allows you to make up to six withdrawals per cycle, though your deposits can be unlimited. And your account is FDIC ^[5] insured. Not a single person has lost money in a bank or credit union that was insured by the FDIC since it began.

Money Market vs Certificate of Deposit

You may be able to get a better rate with a CD ^[6], but access to your money will be very limited. Take your money out before the term of the CD ends and you’ll pay an interest penalty.