What is a key feature of Money Market Accounts?

Money Market Accounts (MMAs) typically offer competitive interest rates while providing some liquidity, allowing account holders to access funds when needed. A key feature of MMAs is that they usually have specific limitations on the number of withdrawals that can be made each month. This feature differentiates MMAs from regular savings accounts, which might offer more flexibility in terms of withdrawals.

This restriction on the number of withdrawals is in place primarily to help financial institutions manage liquidity since MMAs often offer higher interest rates than standard savings accounts. Therefore, it's essential for potential account holders to be aware of these limits if they intend to use the account frequently for transactions.

The other features presented in the choices either misrepresent MMAs or provide incorrect conditions. MMAs do have minimum balance requirements that must be met to avoid fees or to qualify for the announced interest rates, they are not exclusively available through credit unions as they can be found at many commercial banks as well, and they certainly provide interest rate benefits, which is one of the main draws of these accounts.