Money Market Account

A Money Market Account (MMA) is a type of Savings Account that typically offers higher Interest Rates than traditional Savings Accounts while allowing limited Check-writing and debit card access. MMAs invest in short-term, low-risk Securities, making them relatively safe and liquid. They usually require a higher minimum balance to open and maintain than regular Savings Accounts.

For example, an MMA might offer an Interest Rate of 0.50% to 1.00%, depending on the balance. If you maintain a minimum balance of $2,500, you may earn interest monthly and have the ability to write Checks, typically up to six transactions per month.

In a practical case, an individual might deposit $5,000 into an MMA to earn a competitive Interest Rate while keeping access to their funds. If they need to make a few payments or transfers, they can do so while still benefiting from the higher interest than they would receive in a standard Savings Account.