Summary of Money Market Deposit Accounts

If you like the traditional savings account, you may like the money market deposit account even more. You can earn a higher rate on it if you can abide by the restrictions on withdrawals. Plus, these accounts are insured. You can use them to store money that you may need for other purchases. You can save up cash to invest in the stock market or buy a house. You can withdraw from your retirement account and keep the money safely. Or, you can save for retirement with the money market account itself.

MMDAs offer higher returns than traditional savings accounts, in return for larger deposits and some withdrawal restrictions. Many individuals who like the safety features of traditional savings accounts have found that MMDAs can fit their needs just as well or better.