Money Market Deposit Account – A banking deposit account relatively with high interest rate.

In the United States it is considered as savings account for some purposes. But upon which checks is typically written or subjected to a certain restrictions like NOW account or the Negotiable Order of Withdrawal account which is structured to comply into such regulations which forbids paying interest in checking accounts. The restrictions allows the bank invest the money with more discretion.

Although money market deposit accounts or MMDA have a similar name to money funds, they are not the same: a money market fund consists of assets held by a brokerage (or bank) on behalf of investors, while a money market deposit account is a deposit at the bank, hence a liability of the bank towards depositors.

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Related ChexSystems Banking Information:

1. Money Market Account
2. Direct Deposit Tip: Save Money By Using Direct Deposit
3. Finding a Checking Account No Deposit Required
4. Demand Deposit
5. Negotiable Order of Withdrawal Account

Tagged as: Banking Deposit, Money Market Deposite Account