money market deposit account

A money market deposit account (MMDA) is a type of savings account offered by banks and credit unions. It is similar to a regular savings account, but it typically has higher interest rates and requires higher minimum deposits. Money market deposit accounts are limited to six (6) transactions per statement cycle, although some banks and credit unions allow more. Like a regular savings account, money market deposit accounts are insured by the Federal Deposit Insurance Corporation (FDIC) up to the maximum amount allowed by law. Funds in an MMDA may be used to make investments, purchase CDs, transfer money to other bank accounts, and more.