Money Market Vs. CD Rates
By placing your money in a money market savings account you will get interests just like is the case with regular savings account and this interest that is paid to depositors because the bank can use this money to disburse loans to other people. In other words, the bank makes money by selling more money and you get money in the form of interest on your deposit.
In fact, the interest paid on money market accounts gets to be compounded every day though it is paid monthly. Such compounded interest means that the bank is in fact paying depositors interest on the money that the bank itself has paid you in the form of interest.
However, along with the restriction on number of withdrawals allowed per month, the bank may also charge a fee such as five dollars if your balance falls below the minimum required by a money market account and there can also be charged a fee if the withdrawal is more than the maximum number of permissible withdrawals per month.