A money market account is a liquid, federally insured bank account that pays interest on your deposit. In contrast, a money market fund is an investment that can include U.S. treasuries or debt securities considered relatively safe. What Is a Money Market Account? A money market account is a federally insured, liquid bank account that pays interest on your deposit. How Does a Money Market Account Work? A money market account operates similarly to a savings account and a c

A money market fund is a type of mutual fund that invests in debt securities with fast maturities and minimal credit risk. These funds are among the lowest-volatility investments. Income generated by a money market fund can be tax-exempt, depending on the types of securities in which the fund invests. The U.S. Securities and Exchange Commission (SEC) defines three categories of money market funds based on the fund’s investments: government, prime, and municipal. SEC rules f