Money Market Deposit Account Law and Legal Definition
A savings account offering a higher rate of interest in exchange for a higher minimum balance is a Money Market Deposit Account. The deposit is insured by the Federal Insurance Corporation. However, a Money Market Deposit Account limits the number of transactions that can be made. In order to receive the higher rate of interest, the account requires a higher balance. Money Market Deposit Accounts are usually managed by brokers and banks. It can be a convenient place to store money used for upcoming investments or money received from the sale of recent investments. An advantage of a Money Market Deposit Account is that they are very safe. Additionally, the account is a highly liquid investment. However, the account offers a lower interest rate than other investments.
