Money market account

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Money Market Account

An account at a bank that pays a higher than normal (relative to other bank accounts) interest rate in exchange for a high minimum balance and a restriction on how many transactions may take place on the account in a given month. For example, a bank may require a minimum balance of $1,000 and require that no more than 10 transactions occur on that account each month. In exchange, it offers an interest rate competitive with the money market funds interest rate.

Money market account.

Bank money market accounts normally pay interest at rates comparable to those offered by money market mutual funds or money market separate accounts offered under a variable annuity contract.

One appeal of money market accounts is that they have the added safety of Federal Deposit Insurance Corporation (FDIC) protection, up to the limit per depositor and account type.

One drawback may be that some banks reduce the interest they pay or impose fees if your balance falls below a specific amount.

Money market accounts may offer check writing and cash transfer privileges, although there are usually limits on the number of withdrawals or transfers you can make each month.

References in periodicals archive ?
Certificate of deposits or CDs and money market accounts are popular ways to save.
The Premium account offers features such as four interest-bearing checking accounts, four savings or money market accounts, specialty cards, money orders, cashier's cheques etc.
Because there are so many ways to save and invest money to earn more on your dollar, money market accounts have all but been forgotten.
While money market accounts or GICs may be prudent for short-term use, they may not be appropriate for long-term investing for retirement.
In addition, money market accounts provide full liquidity and the security of being insured up to $100,000 by the Federal Deposit Insurance Corporation (FDIC).
B died owning several IRAs funded with marketable securities and money market accounts.
On top of that, it gives them access to brokerage accounts that allow them to invest in mutual funds, stocks, bonds, or money market accounts.
They began losing deposits to money market accounts and mutual funds, which, unlike S&Ls, could pay as much interest as they wanted.
Today, savings institutions and credit unions also offer checking, and many nondepository institutions offer money market accounts with a limited checking feature.
For many savers, this insurance ceiling has been the cause of maintaining certificates of deposit and money market accounts at multiple institutions.
Overall, money market accounts can be a great tool for your business to leverage with the extra cash in a savings account.
Second Tier: This level offers low risk and low return, and includes such investments as money market accounts, bond mutual funds, and high-grade corporate bonds.