Money market deposit accounts are a good option for retirees or investors who prefer to earn a high interest on their money with the least possible risk, while maintaining direct access to their funds and being insured against loss.

A money market deposit account (MMA) is a high interest-earning account offered by a financial institution that operates under the Federal Deposit Insurance Corporation (FDIC) with limited transaction privileges mostly related to writing checks. Formally known as a money market deposit account, a MMDA functions as any regular savings account, but has higher minimum balance requirements that range between $1,000 to $2,500 and minimum number of withdrawals. Besides, it offers a higher rate of return because it is subject to the current interest rates that vary.

Content Source: Bukisa – The pros and cons of bank money market deposit accounts