As an investor, you have many options for where to put your money. One such possibility is a money-market account. Though these accounts have certain benefits, they also have a few key drawbacks. How money-market accounts work Money-market accounts work just like regular savings accounts. When you deposit money into a money-market account, you earn interest based on your bank's current rate. Benefits of money-market accounts Money-market accounts typically pay a higher rate of interest than regular savings accounts. Furthermore, because they're FDIC-insured for up to $250,000 per depositor (as of 2016), they're a very safe investment, as you don't risk losing any of your principal. Drawbacks of money-market accounts Though money-market accounts pay higher interest rates than regular savings accounts, they sometimes require much higher minimum balances than ordinary savings accounts. You might find such an account, for example, with a minimum balance of $10,000 or more. If you fail to maintain the required minimum balance, you may be charged a monthly service fee, which could exceed the amount of interest you earn, thus negating the benefit of opening the account in the first place. Furthermore, you're usually limited to six withdrawals or transfers per month. Finally, because money-market accounts are considered extremely low risk, they typically generate a much-lower return than other investments like stocks and bonds Closing a money-market account Unlike certificates of deposit, which charge a penalty for early withdrawals, you can close a money-market account at any time without incurring a penalty. This makes money-market accounts extremely liquid. A money-market account is a good place to store your emergency fund, which is money you've saved that's reserved for emergency situations only. Putting your emergency cash in a money-market account allows you to earn some interest on your savings, and because you're free to close the account whenever you like, there's no risk in leaving that cash in a money-market account while you're not using it. The $15,834 Social Security bonus most retirees completely overlook If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $15,834 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how to learn more about these strategies. This article is part of The Motley Fool's Knowledge Center, which was created based on the collected wisdom of a fantastic community of investors. We'd love to hear your questions, thoughts, and opinions on the Knowledge Center, in general, or this page, in particular. Your input will help us help the world invest, better! Email us at knowledgecenter@fool.com. Thanks -- and Fool on!