Banks and investment firms both offer a product known as a “money market,” but these two similar-sounding financial options are not the same. If you're trying to decide where to put your savings, you need to be aware of the differences.
A bank money market account is just what it sounds like, a type of bank account. A money market fund, offered by an investment firm, however, is a kind of mutual fund. Financial experts consider both to be relatively safe choices for savings, but bank money market accounts come with something extra.
Deposits in money market accounts at FDIC-member banks such as Ally Bank are federally insured up to the maximum allowed by law. Mutual funds don't have FDIC insurance. Investment firms also charge for managing mutual funds at a cost known as an "expense ratio," and they can charge for redeeming your funds or other transactions.
An Ally Bank Money Market Account requires no minimum balance to open and no monthly maintenance fees. We also provide free standard checks. You can use any Allpoint no-fee ATM—plus receive up to $10 reimbursement for fees charged at other ATMs nationwide each statement cycle. Learn more at Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559).
Ally Bank, member FDIC