A money market investment is an account held by a bank or other financial institution that keeps its cash in short term debt obligations. This is to insure maximum safety for the money market investment principal while providing a modest return.

Money market investments have the potential to make, on average, two to five percent per year. This low rate of return is due to their conservative investment strategy in short term debt obligations. Money market investments place their money in treasury bills, certificates of deposit and commercial paper. Money market investments are considered open ended investments, where investors can add and withdraw funds from money market fund accounts at any time without penalty.

One of the benefits of a money market investment is the low risk to principle. Keep in mind that interest rates often change without notice.