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Originally Posted by AtlantaLife&Health
Money Market Accounts are cool but don't forget that you will need to pay interest on the interest earned each year and report it on your tax returns. So here you are trying to make some extra bucks but then you have to give some of it back come tax season. I suggest you call a Financial Adviser in your area and ask them how you should handle the situation. Give your church some money but take care of your personal finances first.
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When you put your money into a money market savings account it earns interest just like in a regular savings account. Interest is money the bank pays you so that they can use your money to fund loans to other people. That doesn't mean you can't have your money whenever you want it, though. That's just how banks make money -- by selling money! Basically, it works like this:
* You open a money market account at the bank.
* The bank pays you interest on the money that you deposit and leave in that account.
* The bank then loans that money out to other people, only they charge a slightly higher interest for the loan than what they pay you for your account.