The following post is by Fred from OnlineBanksBlog.com, a personal finance site focused on helping people find the best bank rates.
The number of banking products available today compared to the number available just ten years ago is astounding. Online savings accounts and checking accounts have changed the way consumers bank. Now, with the advent of these online accounts, I find myself wondering whether money market accounts are still relevant.
Money Market Accounts Historically
In times past, most financial advisers have touted the money market savings account (often called an MMA) as the way to save money for the short- or medium-term. These accounts have historically had a higher interest rates than standard savings (or passbook savings) and interest-bearing checking accounts.