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Money Market Account

A savings account that offers the competitive rate of interest (real rate) in exchange for larger-than-normal deposits.

Also known by the acronym "MMDA", which stands for "money market demand account" or "money market deposit account".

|||Many money market accounts place restrictions on the amount of transactions you can make in a month (such as five or less). Furthermore, you usually have to maintain a certain balance in the account to receive the higher rate of interest. Some banks require at least $500, others require a much higher balance.





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