Before 2008, when IORR was zero along with IOER, reserve requirements acted as a modest excise tax on transactions deposits, and therefore gave banks a strong incentive to game them through the introduction of negotiable order of withdrawal (NOW) accounts, money market deposit accounts
, and retail sweep accounts.
BAC's cost of interest bearing liabilities only grew by 28 basis points as BAC's savings and money market deposit accounts
re-priced much slower than assets.
It offers private education loans and also provides banking products, such as certificates of deposits, money market deposit accounts
and high yield savings accounts; and a consumer savings network that offers financial rewards on everyday purchases to help families save for college.
The company's deposit products include savings accounts, checking accounts, individual retirement accounts, money market deposit accounts
, certificates of deposit, interest accounts, and student accounts.
By offering money market deposit accounts
, which typically have equal or better returns than money market mutual funds, banks can provide customers with a winning situation --money market accounts allowing for all the benefits with none of the risk.
The funds are typically invested in money market deposit accounts
, money market funds or treasury funds -- historically low yield investments.
In addition to excess, non-operating accounts include short-term time deposits with a maturity of 30 days or less and accounts with transaction limitations, such as money market deposit accounts
. With these deposits there is an assumption that a higher percentage of balances would be removed from the bank in the event of a stress event.
Wall Street offers an abundance of investment products that look almost as safe as the money market deposit accounts
offered at the local bank.
Savings bonds Salerno / Rothbard Govt demand accounts at commercial banks and Salerno / Rothbard the Fed Foreign institutional accounts at comm banks and Salerno the Fed Foreign bank demand accounts at comm banks and Salerno the Fed Money market deposit accounts
Salerno overnight repurchase agreements Salerno overnight eurodollar accounts Salerno Instantaneously redeemable small denomination Rothbard time deposits/CDs (11) Cash surrender value of life insurance policies Rothbard (not term) Excluded from both definitions: Large denomination time deposits
These are NOW accounts that are generally less restrictive than Money Market Deposit Accounts
Other liquidity options include money market deposit accounts
, jumbo CDs, money market mutual funds and fixed-income securities.