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Money Market Deposit Accounts
The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities are traded. The money market is typically seen as a safe place to put money due the highly liquid nature of the securities and their short maturities. While money market investments are not without risk, money market deposit accounts are virtually risk-free because they are FDIC insured. Money market deposit accounts should not to be confused with money market mutual funds, which are offered by investment companies and are not FDIC insured.
Money market deposit accounts tend to have higher minimum balance requirements than regular or online savings accounts. This minimum usually ranges from $100 to $2,500. There may be a monthly fee associated with this type of savings account, and there is a federally imposed limit to how many withdrawals you can make per month. The interest paid will be higher than that on a regular savings account balance, but possibly less than what an online savings account would pay. Unlike many regular and online savings accounts, however, money market accounts are likely to have check-writing privileges.
The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities are traded. The money market is typically seen as a safe place to put money due the highly liquid nature of the securities and their short maturities. While money market investments are not without risk, money market deposit accounts are virtually risk-free because they are FDIC insured. Money market deposit accounts should not to be confused with money market mutual funds, which are offered by investment companies and are not FDIC insured.
Money market deposit accounts tend to have higher minimum balance requirements than regular or online savings accounts. This minimum usually ranges from $100 to $2,500. There may be a monthly fee associated with this type of savings account, and there is a federally imposed limit to how many withdrawals you can make per month. The interest paid will be higher than that on a regular savings account balance, but possibly less than what an online savings account would pay. Unlike many regular and online savings accounts, however, money market accounts are likely to have check-writing privileges.
