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Pros and cons of Money market account

The pros of a Money market account are safe, flexible, high saving rate and have easy to access. The cons of Money market accounts are the transition restriction, Maintenance Fees, Balance requirement and Rate of interest. There are several pros and cons of the Money market account to consider when looking at its positives and negatives.

The biggest question may be where to keep your money, regardless of whether you have savings or are just beginning your saving journey. You might take into account a money market account as an alternative to a traditional savings account or a high-yield saving account.

One good place to keep some of your cash savings is a Money Market account (MMA). That could be money you have set aside for other financial objectives on your emergency fund. In comparison to conventional saving accounts, interest rates are typically higher, and liquidity is not a problem. There are some drawbacks, though, as with any investment strategy. Before deciding how a money-market account might fit into your financial strategy, take some time to consider its pros and cons.

One of a money market account’s primary Benefits is that:

  1. Safety
  2. Flexibility
  3. Saving rate
  4. Access

The main drawback of a money market account include:

  1. Transition Restriction
  2. Fees
  3. Balance requirement
  4. Rate of interest

Pros of money market account | Advantages

First, let’s consider the pros of putting a money market account


One of the best benefits of money market accounts is that they can be low-risk saving options. And also, MMA that are insured by the federal deposit insurance corporation offer additional protection against bank failures.


If you have several accounts at the same bank, it may be convenient to deposit money into a money market account or transfer money between linked accounts. It can be simpler and less stressful to handle tasks like paying bills, funding significant expenses, or taking care of an emergency if you have a linked debit or ATM card, and the ability to write checks. Another flexibility is that it can be used to finance a variety of short and long-term saving objectives.

Saving rate

Compared to traditional saving accounts, money market accounts occasionally offer higher annual percentage rates of return on saving.


It is important to have your money on hand when you need it. Unlike a certificate of deposit, which require you to keep your money in the account for a specific amount of time, a money market account lets you access your money whenever you want.  You can withdraw money from an ATM, send a check or electrically transfer money if you ever need to dip into your saving for any reason.

Cons of Money market accounts | Disadvantages 

There are also Drawback of money market accounts to think about before deciding on a place to put your funds

Transition Restriction

Withdrawal caps may apply to the money market accounts every month. A similar transaction limit may apply to saving accounts, whereas checking accounts typically do not.


Banks have the right to charge money market accounts monthly maintenance fees just for having the account. While it might be possible to avoid the fee by keeping a minimum daily balance or having a direct deposit, not all banks provide a way to do so. The monthly interest on your savings could decrease the more fees you pay each month.

Balance requirement

Some banks have higher minimum balance requirements when opening a money market account than they would for a checking or saving account. Additionally, you might need to maintain a minimum balance at all times. If you don’t satisfy these conditions, you might be required to pay monthly maintenance fees. Before opening this kind of account, you might want to think about whether you can consistently afford that minimum balance.

Rate of interest

While some money market deposit accounts can provide excellent rates for savers, others might provide a rate that is comparable to the annual percentage yield you could get from a typical saving account. In order to be eligible for a higher rate, your account may need to have a minimum balance of $5000 or $10000. In either case, a money account might become less appealing if getting the best interest rate on your savings is your top priority.

Thank you for reading this article. If you have any queries regarding our article on the Pros and cons of the Money market account then do comment in the comment section below.

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Divya Chauhan
Divya Chauhan is an expert writer with 10+ years of experience as a content writer. They specialize in making complex topics like IT, Health, and general topic easy to understand. Divya has written over thousands of articles to help people with their content. Prior to joining Way2benefits’s editorial team in 2020, Divya worked as a Professor of BCA college and freelancer blogger.