A Money Market Deposit Account (MMDA) is similar to a savings account, but normally allows a limited number of checks to be written off the account. Money markets typically pay better rates than savings accounts, which may be why they typically have higher minimum balances than savings accounts. A few notes about MMDAs:
- only six withdrawal transactions to third parties are permitted per month, only three of which may be paid by check
- some banks limit their customers to six total transactions. ATM transactions may or may not be counted as part of the six.
- make sure they are FDIC insured
You can find the best rates currently at Bankrate.com.
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I have a question about money marketing while on a low budget. I have only $200.00 to work with, but I would like to put it into something that can draw higher interests than a savings account. I won’t use it, hopefully, within 6 or 7 years. I may be able to deposit more after income tax returns, if I get one this year.
Can you please give me advice? I hope I’m doing the right thing. I don’t know if this is right, or should I just depend on the Lord?
Thank you,
Patricia Hodges