Advantages

• It pays a bit higher interest than a regular savings account or a Super NOW account.

• It is insured by a federal agency.

• You can write a limited number of checks on the account each month.

Disadvantages

• The interest rates are lower than for a money market mutual fund.

• A large minimum balance is required, and interest is paid on a tiered rate.

• You are allowed a limited number of transactions per month.

• You are charged transaction and maintenance fees.

You may wish to set up a money market checking account in addition to or instead of a regular savings account. A money market account usually pays more than a savings account because the interest rate is tied to the prime rate. Your paycheck and any other funds you receive should go into this account. You can then write a monthly check to your regular checking account to pay your bills.