The main advantage and the aim to open a money market account are to invest savings in the money market. These accounts are also known as deposit accounts and have a lot of similarity to saving accounts. The main difference between these two accounts is that is a money market account there is a limit on the number of withdrawals one can do in a month.

These accounts are mostly handled and managed by the banks but sometimes there are also some brokers who manage them. The money market account is very beneficial to the users as it is very safe. It allows the customer some transactions per month. The banks do not support the customers to exceed the number of transactions allowed to them.

The bank levies high fees on these accounts when it is found that the customer crossed the limits that were set for him for transactions and withdrawals. Extreme measure can also be taken by the bank in order to close the money market account.

The banks resort to this step so that they have the control on the limit on the number of transactions done by the customers. When the bank has the authority to limit transactions they can invest the money appropriately and in a suitable way thus ensuring a higher rate of return to the account holders of these accounts.

The interest paid on these by the bank is higher when compared to the savings account and unless there is a limit on the withdrawals in the account the bank will not be able to invest it suitably and get a higher rate of return.