Is a money market account safe?

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asked Dec 29, 2019 in Other-Finance by njki89h (410 points)
Is a money market account safe?

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answered Dec 29, 2019 by Christeen (42,110 points)
Yes money market accounts are pretty safe and they are insured by the FDIC for up to $250,000.00 per money market account just like a regular bank account is.

So you are protected and your money is protected up to $250,000.00 in the event something goes wrong and you lose your money.

You will then get that money back.

Also money market accounts are taxed and so you do report and pay taxes on income you get from the money market account.

A money market account earns interest which is your income from the money market account.

The amount of interest or money that you earn from the money market account must be reported to the IRS on your income taxes.

Then if you earn enough money through the money market account you are taxed accordingly to the amount of income you make.

If you don't earn enough money through interest from the money market account then you won't pay taxes on that income.

But if you earn enough money to be taxed then you will be taxed and need to pay taxes on that income earned.

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