Can you lose your money in a money market account?

0 votes
asked Jul 4, 2019 in Investing by Djames55 (340 points)
Can you lose your money in a money market account?

1 Answer

0 votes
answered Jul 4, 2019 by Judy (56,120 points)
A money market account can be a better idea than a regular savings account since with a money market account you usually get a higher interest rate earned on your money.

A savings account usually pays less interest to you than a money market account so by having your money in a money market account instead of a regular savings account you will usually earn more money in interest.

So in that way a money market account would be a better option than a regular savings account.

But be aware that with a money market account the money is not FDIC insured in the event the bank fails and you would lose all your money that would be in the money market account because the FDIC would not cover the loss of your money when it's in a money market account.

In a regular savings account your money would be insured up to $250,000.00 by the FDIC in the event the bank failed so you wouldn't lose your money.

With a money market account you also cannot withdraw any money or make payments more than six times a month from the money market account.

So yes you can lose money with a money market account but you can also gain more money through interest unlike a savings account that pays less money in interest.

101,389 questions

97,087 answers

1,291 comments

7,003,195 users

...