A money market account (MMA) is a type of interest-bearing deposit account offered by banks and financial institutions that combines features of both savings and checking accounts. One of its key characteristics is that it typically offers higher interest rates compared to regular savings accounts, making it attractive for depositors seeking better returns. MMAs often come with limited check-writing privileges and debit card access, allowing a degree of liquidity while still encouraging savings. However, they may require higher minimum balance requirements and can impose limits on the number of withdrawals or transfers, typically up to six per month as per regulatory guidelines (though these limits may vary). MMAs are also considered low-risk and are usually insured by deposit insurance schemes like the FDIC in the United States, offering both security and flexibility for short-term savings.

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