Brokerage firms offer better money market rates of return but they also take less responsibility for risk than a bank. If you can accept slightly more risk, then you can find some very high rates of return through brokerage houses.

One important aspect of money market funds to remember is that they are not insured against loss by the FDIC like a regular account would be. When you invest in one of these funds, you are accepting all the risk and the possibility that you could lose money.

Money market fund risk in minimized by investing in securities that offer the most safety. That is one thing that makes them different from a standard mutual fund of direct stock purchases. The risk is still there, but it is very small.

Another thing to keep in mind is that brokerage firms often charge fees to administer these accounts. You must way the cost of the fees against the possible returns in order to decide if the cost is worthwhile. Often you will find that if you maintain only the minimum balance that the fees will eat up the majority of your profits.

If you are looking for an investment that will pay a better return than a conventional savings account but are still hesitant to take on the risk of straight stock trades, money market mutual funds are a good middle ground. Like all investments, make sure you do the proper research before handing over your money.