If you're questioning are money market accounts insured? Yes, don't worry about your money in a money market account, they're insured by the Federal Deposit Insurance Corporation (FDIC) up to the maximum amount allowed by law – $250,000.
This means that if your total account balances at a given bank (including money market, savings, checking and CD accounts) reach higher than this limit, only the first $250,000 is FDIC-insured.
Money market accounts can be a valuable part of your savings strategy. These accounts offer higher interest rates than standard checking or savings accounts. Plus, most money market accounts come with limited check-writing ability, unlike a straight savings account.
Money market accounts are a cross between a savings and checking account, however, deposit minimums tend to be higher. They are also subject to the Federal Reserve's Regulation D, which limits withdrawals to six per month.
How are money market accounts insured
The Federal Deposit Insurance Corp. is an independent agency of the U.S. government that protects the money you place on deposit account with banks. This insurance is put into place to protect you and your money in the event that your financial institution should fail.
The FDIC pays insurance to you if the bank fails. This is generally completed in one of 2 ways:
- FDIC opens a new account for you at another insured bak with the same insured amount you had at the failed bank.
- FDIC may send you a check for the insured balance you had in your account at the failed bank.
- The $250,000 FDIC-insured limit applies on a per-depositor, per-bank basis.
Along with money market accounts, FDIC insurance also covers the following at participating institutions:
- Checking accounts
- Savings accounts
- Certificates of Deposits (CDs)
- Cashier's checks and money orders issued by a bank
- Negotiable Order of Withdrawal (NOW) accounts
Are money market accounts insured at Credit Unions
Credit unions are not insured by the FDIC. Instead, the National Credit Union Share Insurance Fund (NCUSIF) insures money market accounts up to $250,000 of your total deposits at a given credit union. Insured money market accounts at credit unions works very similar to how bank-insured money market accounts. Your money is safe up to $250,000.
5 Best Money Market Account Rates 2019
You can save for the future while earning a great rate.
- CIT Bank – 2.30% APY
- BBVA Bank – 2.00% APY
- UFB Direct Money Market – 2.15% APY
- Sallie Mae – 2.20% APY
- TIAA– 2.15% APY
Find more information on the best money market account rates for 2019
Money market accounts are good and safe investment vehicles with shorter-term savings requirements. You can earn a competitive APY (annual percentage yield) and enjoy liquidity if you need your money. There are other investments that may have higher rates of return, but they may also have potential risk of principal.
See how much interest you can earn with our savings apy calculator.