What are Money Market Accounts (MMAs)?
A money market account (MMA) is a hybrid savings account that pays you higher than normal interest and allows a low maximum number of transactions per month. Money market accounts (MMAs) are often quite popular savings vehicle with people who have more than prescribed minimum balances needed to have an account (typically from $1,000 to $2,500), process only a few transactions per month (usually limited to from three to six), and don’t need to write more than three checks per month. Your ability to write a few checks every month serves to make an MMA even more versatile, while remaining more profitable than a regular savings account. The transaction restrictions help your bank or credit union manage your money to provide you with higher earnings. Do not confuse MMAs with money market mutual funds. MMAs are accounts at insured banks and credit unions, so your principal is protected up to the amount allowed by the FDIC – currently $250,000 per depositor (see also: Recent FDIC changes. Mon
