What type of account typically pays a higher interest rate and allows limited check-writing?

A money market account is designed to offer a higher interest rate compared to regular savings accounts while still allowing limited check-writing capabilities. This account type usually requires a higher minimum balance to maintain and may offer tiered interest rates, where higher balances earn better rates.

The interest is often compounded more favorably than simple savings accounts, making money market accounts appealing for those wanting to earn more on their deposits. However, they are not as liquid as checking accounts because they impose limits on withdrawals or check-writing activities, which adds a layer of savings flexibility without sacrificing too much in terms of accessibility to funds. This combination of features—higher interest rates and restricted check-write access—is what distinguishes money market accounts from other options like regular savings accounts, certificates of deposit, and checking accounts.