MM at bank (properly called a Money Market Deposit Account): Rate set by whim of bank directors and can change at anytime, many of them have limited checking privileges, insured by FDIC (but it may take months to get your money back, during which time you won't earn interest or have access to your money), minimum balance usually $1000-$5000.MM at brokerage or mutual fund company (properly called a Money Market Mutual Fund): Pays the going rate for highly rated debt that trades on the market (when a bank makes a loan, often times it sells the right to receive the repayments on the open market). Most of them have limited checking privileges. Minimum balance usually $3000-$10,000. Given changing interest rates and credit ratings of the underlying companies, the asset value can fluctuate, but the fund managers have to maintain a $1 share price to be able to advertise it as a money market. If the brokerage house goes under, under the SIPC you may be able to get back your "shares" of the MMMF, but there's no guarantee as to what the shares will be worth.Often times the MMMF managers will cover your losses if there's a default causing you to lose money, or will have insurance which does the same. But this is certainly not guaranteed.
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