Quick Definition

A money market account (MMA) is a type of savings account that typically offers higher interest rates in exchange for larger minimum balance requirements.

Examples

• 1A person saving for a down payment on a house might use a money market account to earn more interest than a regular savings account.
• 2A business might keep its operational funds in a money market account to benefit from higher interest rates while maintaining liquidity.
• 3An individual might choose a money market account for emergency funds, as it combines the benefits of savings and checking accounts with typically higher interest rates.

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