What is MONEY MARKET DEPOSIT ACCOUNT?

Savings account type used by banks and brokerage firms to invest in short-term debt obligations using funds held on deposit. This account type typically offers limited check writing privileges. It also typically pays an interest rate higher than regular savings but lower than a time-deposit or certificate of deposit. Also known as a Money Market Demand Account or simply as a Money Market Account. Contrast to Money Market Fund.

More On This Topic



Link to This Definition
Did you find this definition of MONEY MARKET DEPOSIT ACCOUNT helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary