Money Market Deposit Account
(click on the bold-faced vocab words:))
Both are easily accessible and earning interest.
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.
(Originally published on Amanda Stanhaus’s financial literacy blog: XO, Bettie.)