Glossary · UK
What is Money Market Account?
A savings account offering competitive interest with limited access, often linked to short-term money market investments.
Full Definition
A money market account is a type of savings account that typically pays a higher rate of interest than a standard easy-access account, in return for restrictions such as a higher minimum balance or limited withdrawals. The name comes from money markets - the trade in short-term, low-risk debt instruments - though in the UK the term is used loosely and may also describe money market funds, which pool investors' cash into very short-dated assets. Bank and building society money market accounts benefit from the Financial Services Compensation Scheme, protecting eligible deposits up to GBP 85,000 per person, per institution; money market funds are investments and are not covered in the same way. Interest earned counts as savings income and may be taxable above your Personal Savings Allowance. Tax-free alternatives include a Cash ISA, which shelters interest within the annual ISA allowance of GBP 20,000 for 2026/27. These accounts suit savers wanting a balance of yield and relatively low risk.