Easy Accessibility
The owners of the money market account can access their account easily through ATMs, checks, and other methods. They can see their money market account displayed whenever they bank online. One of the main advantages of having this account is its liquidity with no maturity date. It becomes convenient for the person to access money for various purposes using such an account. As long as one hasn’t surpassed his/her account’s transaction limit, money can be moved from one account to another smoothly.
Higher Interest Rates
The money market account’s other advantage is that it can generate more interest than any other general bank accounts, including the passbook savings accounts and regular savings accounts. Despite yields being low at present, the Federal Reserve is raising interest rates, which will eventually raise market yields. Since the interest rate is compounded and credited monthly, a money market fund accumulates more profit as the account balance increases.
Low-Risk and Safe Investment
A money market fund is eligible to safeguard the owner’s investments and to generate returns at lower risk. For example, the independent Federal Deposit Insurance Corp. covers each money market account up to a $250,000 limit per account. This initiative will protect the account and the investors from the loss of the deposit. It has been found that, thanks to the FDIC's creation, no one has lost their money at any of its insured financial institutions. Moreover, if someone’s money market account is associated with the credit union, then their deposits will be protected by the National Credit Union Administration.
Transparency
A money market account keeps fees transparent when they are charged. There are no fees for subscribing to or redeeming from money market funds, which makes account holders feel relaxed about moving their money in or out of the account whenever necessary.
Reference(s):