Money Accounts

Bank money market 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 the limit per depositor and account type.

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

Money 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.