What is a money market account?

A money market account combines the functions of a checking account and a savings account, according to Ally. Most money market accounts allow customers to write checks and use debit cards, similar to a checking account. The accounts also pay interest, often at higher rates than standard savings accounts.

Although customers can write checks from a money market account, many banks limit the number of withdrawals customers can make each month. Banks also typically require either a monthly fee or a minimum daily balance for money market accounts, Ally notes. The accounts are appropriate for investors who save significant sums without needing frequent access to the money, Bankrate advises.