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    A money market account (MMA) is a deposit account offered by banks that invests in short-term government and corporate securities. MMAs typically offer higher interest rates than regular savings accounts and require minimum balances to earn interest or avoid fees. MMAs allow limited check writing while still complying with regulations on interest-bearing accounts. In the US, MMAs are considered savings accounts that permit 6 withdrawals per month to third parties before fees are imposed.

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    A money market account (MMA) is a deposit account offered by banks that invests in short-term government and corporate securities. MMAs typically offer higher interest rates than regular savings accounts and require minimum balances to earn interest or avoid fees. MMAs allow limited check writing while still complying with regulations on interest-bearing accounts. In the US, MMAs are considered savings accounts that permit 6 withdrawals per month to third parties before fees are imposed.

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    15 views2 pages

    Money Market Account

    Uploaded by

    vikram258
    A money market account (MMA) is a deposit account offered by banks that invests in short-term government and corporate securities. MMAs typically offer higher interest rates than regular savings accounts and require minimum balances to earn interest or avoid fees. MMAs allow limited check writing while still complying with regulations on interest-bearing accounts. In the US, MMAs are considered savings accounts that permit 6 withdrawals per month to third parties before fees are imposed.

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    Money market account

    From Wikipedia, the free encyclopedia


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    This article is about the type of bank deposit account. For the type of mutual fund, see Money
    market fund.
    This article needs attention from an expert on the subject. See the talk page for
    details. WikiProject Finance may be able to help recruit an expert. (November 2008)
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     v • d • e 

    A money market account (MMA) or money market deposit account (MMDA) is a deposit
    account offered by a bank, which invests in government and corporate securities and pays the
    depositor interest based on current interest rates in the money markets.[1]

    Money market accounts typically have a relatively high rate of interest and require a higher
    minimum balance to earn interest or avoid monthly fees. The resulting investment strategy is
    therefore similar to, and meant to compete with, a money market fund offered by a brokerage,
    which is considered almost as safe as savings[citation needed]. The two account types are otherwise
    unrelated.

    [edit] United States


    In the United States, an MMA is a deposit account that is considered a savings account for
    some purposes, but upon which checks can typically be written, subject to certain restrictions.
    Like a Negotiable Order of Withdrawal account, it is structured to comply with Regulation Q,
    which forbids paying interest on checking accounts. Thus money market deposit accounts are
    accounts that bear interest, and on which checks can be written, but, due to various
    restrictions, are not legally checking accounts, and thus do not run afoul of Regulation Q.

    Since the account is not considered a transaction account, it is subject to the regulations on
    savings accounts: only six withdrawal transactions to third parties are permitted per month.
    [1] Banks are required to discourage customers from exceeding these limits, either by
    imposing high fees on customers who do so, or by closing their accounts. Banks are free to
    impose additional restrictions (for instance: some banks limit their customers to six total
    transactions). ATM transactions may or may not be counted.

    [edit] References
    1. ^ Dlabay, Les R.; Burrow, James L.; Brad, Brad (2009). Intro to Business. Mason,
    Ohio: South-Western Cengage Learning. p. 482. ISBN 9780538445610.

    Retrieved from "http://en.wikipedia.org/wiki/Money_market_account"


    Categories: Finance articles needing expert attention

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