Everything you need to know on money market savings account

Everything you need to know on money market savings account

A money market savings account, popularly known in its short form – MMA, is a type of savings account which earns a higher amount of interest when compared to basic and ordinary savings accounts.

How does interest work with a money market savings account?

The interest in an MMA is compounded either on a daily, weekly or monthly basis. The interest is paid on a monthly or quarterly basis.

Benefits of an MMA

  • The FDIC Insurance: The Federal Deposit Insurance Corporation (FDIC) allows insurance on the deposits and interest accrued maximum by the law. The FDIC protects the money you put into the MMA, and this feature usually is not available in standard savings accounts.
  • Interest rates: This is the best benefit of an MMA. The interest rates are much higher when compared to normal savings accounts. This acts as leverage to convince people all around to save money.
  • Checks and Debit cards: It is a known fact that normal savings accounts do not allow one to access money easily through checks or debit cards. This hindrance is removed through MMAs. MMAs allow the account holder to write checks and use debit cards to make payments.

Disadvantages of an MMA

  • Balance requirement: A money market savings account requires a high minimum balance amount. If the minimum amount specified by the bank is not in the account, then such an account will be levied a fine.
  • Withdrawals and transfers: Majority of money market savings accounts allow only a limited number of withdrawals and transfers every month. This acts as a problem to account holders who may want to withdraw money during an emergency but may not be allowed to because it exceeds the limit.
  • Interest rate fluctuation: A money market account of any kind does not come with a fixed rate of interest. The interest rates vary as per market conditions.
  • Fees: Banks providing money market accounts of any type charge fees for account maintenance, transactions and all other financial services available.

Recent Questions

Q1.

Will my premium get cheaper each year if I stick with the same insurer?

Answer

This is unlikely, certainly in the long term - when a customer gets out of the habit of shopping around, insurers typically take advantage and inflate renewal premiums.

Q2.

How do you find the right health insurance plan?

Answer

Get in touch with your specialist, make an estimate of your healthcare needs, and weigh the risk vs. reward to be able to find the right health care plan for yourself.

Q3.

Which are the common types of general insurance?

Answer

Motor insurance, property insurance, commercial vehicle insurance, treatment cover, health insurance, and family floater policy are among the common general insurances available.

Q4.

What kind of coverages are provided by Say insurance?

Answer

1. Auto Collision: Helps pay for damages to your vehicle after an accident, regardless of whos at fault.2. Comprehensive: Protects you from non-accident related incidents like theft, vandalism or hail.3. Liability Car Insurance: Covers injuries and damages you cause to others and their property in an accident.4. New Car Replacement: Ensures you can

Popular Products