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Remember that MMFs are not federally insured

Money Market Mutual Funds, held at a brokerage or mutual fund house, are not federally insured as to loss of value. They're not even SIPC insured as to insolvency of the holding brokerage or mutual fund house.

Money Market Deposit Accounts (Also sometimes called money market savings accounts) held at a bank are FDIC insured, as are all deposits at banks. (And similar for thrifts and credit unions) The term "money market" in this case is a misnomer since these accounts have nothing to do with the money market (ultra short-term bond market) since the rates are set administratively by the bank.
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