How you would feel if you could find a safer investing option at safest places, covered by insurance and at the same time can yield high upon maturity? You would certainly be pleased to invest, isn't it? Then here you get your answer. Banks are offering a type of savings account called money market accounts.

Banks call it by different product names. Some call them high interest accounts, others call them high yield accounts etc. But they are essentially the same. In effect any savings account which promises an interest rate of 1.25% APY or above can be considered a good one to sign.

These should not be confused for transaction accounts like checking accounts. Money market accounts don't allow customers to perform many free transactions. Banks impose limits on transactions. By maintaining sufficient liquidity banks begin to invest in profitable areas. The returns they get is what gets translated as high returns.

Recession times have proven the benefits of these accounts. When people were losing money invested in stocks, mutual funds etc., money invested in these accounts stood steady due to the FDIC coverage