money market deposit account


Money Market Demand Account

An account, such as a checking or savings account, that pays a certain (low) interest rate to the holder and from which funds may be withdrawn on demand. Money market demand accounts are included in most counts of money supply.

money market deposit account

A savings account at a commercial bank or thrift institution that pays a return competitive with money market funds. The number of transactions that may take place each month is limited. Institutions offering the accounts may require a minimum balance in order to receive money market yields. Because of their liquidity and adequate returns, these accounts are ideal temporary repositories for funds awaiting more permanent investment.