Money Market Account
In deposit terminology, the term Money Market Account refers to a deposit held with a retail financial institution which does not have a given maturity date. Also, a Money Market Account generally pays a higher and variable rate of interest that fluctuates according to level of return prevailing in the money market.
For example, a Money Market Account will often differ from an ordinary savings account because withdrawals are allowed via check or debit card in a similar way to a checking account. Nevertheless, a Money Market Account tends to differ from a basic checking account because it will usually offer a higher rate of interest on balances. Furthermore, in the United States, such a higher rate of interest can be paid with a Money Market Account provided that its balance stays above $1,000. When the Money Market Account’s balance falls below that amount, a lower rate of interest is then paid commensurate with that rate paid on a Negotiable Order of Withdrawal or NOW account, which is essentially just a checking account that pays interest.