Money Market Deposit Account

by astanhaus

money market deposit account is a savings account--but on steroids.

(click on the bold-faced vocab words:))

Both are easily accessible and earning interest.

Money market deposit accounts stand out with their high deposit requirements. AND usually have higher interest rates than a regular savings account. AND are FDIC insured.

Careful to not confuse these with with money market mutual funds, which like all mutual funds are not FDIC insured. Here the distinction is explained.

The catch with a money market deposit accounts is a limited # of withdrawals per month.

These are good for large sums of $$ that will need to be used, but not quite yet.

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(Originally published on Amanda Stanhaus’s financial literacy blog: XO, Bettie.)