Although they have similar-sounding names, money market funds (MMF) and money market accounts (MMA) are completely different products. It’s important to be sure you know what you’re getting before you make a deposit.
For starters, even the best money market fund puts your money at risk because these financial products are investments. That's not to say that investing is a bad thing. In fact, the managers of mutual funds (which provide the basis for potential money market fund returns) work hard to make sure owners get some kind of return. However, there is still an underlying risk, a fee (usually annual) and the annual expense ratio, which can erode your potential returns.
By contrast, a money market account (like the Ally Money Market account) earns interest and is FDIC-insured up to the maximum allowable by law. And unlike even the best money market funds available, the Ally Money Market Account requires no minimum deposit to open and no monthly maintenance fees. Plus, interest compounds daily to help maximize your earnings.
Compare the competitive interest rate of the Ally Money Market Account to the best money market fund rates you can find, factor in flexibility and convenience, and see what’s best for you. Learn more by visiting Allybank.com or call live, 24/7 customer support at 877-247-ALLY (2559) today.