What is a Money Market Account?

photo of piggy bank on top of a pile of money

A money market account is exactly like a savings account but with some checking account features. They typically have a higher minimum deposit or balance requirements than a savings account. So, it’s important to look at your options before choosing a money market. You will usually see them come with checks or debit cards that allow a limited number of transactions per month. For banks, money market accounts are insured by the Federal Deposit Insurance Corp., and for credit unions, they are insured by the National Credit Union Administration. Eastex is privately insured by American Share Insurance. This way, if your financial institution happened to go out of business, you won’t lose your deposits.

Money market accounts vs. other accounts

Don’t get confused on what a money market account actually is. A money market account is NOT a money market fund or a checking account.

  • A money market fund is an investment that can lose value if the market falls. Money market accounts are insured.
  • A money market account has a lot of the same features as a checking account. But, you are limited to six transfers or withdrawals per month. This includes check, debit card swipe or online transfer.

Are money market accounts worth it?

Let’s talk about the pros and cons.


  • Receive some of the best rates from your financial institution.
  • Ability to access funds much easier than a savings account. This is helpful if you’re caught in an emergency.
  • You are protected by insurance, so your money is safe.



  • You may be more likely to spend the funds.
  • Some accounts require high minimum balances to open or avoid fees.
  • Most of the time, savings accounts pay just as much interest.


It’s important to pay attention to the rates of each at your financial institution. You may be better off sticking with a savings account to avoid high minimum balance requirements.

How to choose a money market account

If you choose a money market account, make sure it has a high interest rate, no monthly fee and a reasonable minimum balance. You will find that some require $10,000 or more to open an account.

Is a money market account right for you?

Eastex CU offers high interest rates that will give you a better return on your money. If you think this may be right for you or you would like to hear more about them, contact us!

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