Money market accounts do not get their just due. The fact is that bank money market accounts are unique in the combination of features and performance that they can offer. If you don't believe this, here is what makes money market accounts unique.

High Yields vs Other Cash Instruments

Money market accounts are compared quite often to money funds. Both have federal guarantees, check-writing privileges, and are considered safe investments. There is one importance difference, however. Rates. The rates on the money funds offered by mutual fund companies are quite low right now. The national average is below 0.50% and only a few money funds from large mutual fund companies even approach 1%. If you own a Treasury-only money fund your plight is even worse. Chances are that your yield is below 0.30%. Money market accounts, on the other hand, offer yields over 2%. If you check the rate tables at MoneyRates.com you can even find rates close to 3%. An investor who has money parked right now in a money fund could very likely triple their yield by transferring the funds to a new bank money market account. 

Liquidity

Money market accounts have a big advantage over many fixed-income securities and CDs because they are completely liquid. You can write a check or transfer funds online to another financial institution in minutes. Just remember that the number of monthly withdrawals is limited by the bank. This flexibility allows investors more control over their account. Savings accounts do not offer check-writing ability and most CDs cannot be liquidated without a penalty. This makes money market accounts the preferred choice for some investors.

Rate Swapping Opportunities

Money market accounts are great for people who like to switch their money from bank to bank to find the highest rates. Due to the ease of transferring money a money market investor can constantly switch funds to keep earning better and better rates.  A few banks will charge a fee for a withdrawal made within a certain time period of opening the account, so read the fine print of the bank's disclosures carefully before opening an account. Otherwise, money market accounts are the perfect account for rate chasers.

Safety

You can't overlook the safety that bank money market accounts provide. FDIC insurance up to $250,000 applies for all depositors until December 31, 2013. Other quasi-safe investments like bond funds or government agency securities do not offer the same level of federal backing. Even bank failures have not prevented depositors from access to their money market funds. In most cases, if a bank fails on a Friday, the depositor still has access to their money the following Monday. Safety is a major attribute of money market accounts.