Basics

A Money Market Demand also known as Money Market Deposit Account (MMDA) is a hybrid type of savings account offered by banks and brokerage firms.  It is primarily a savings account with some limitations and rewards.  MMDA and Money Market Deposit Accounts are often used to “hold” your money (short term) between investments. These accounts are FDIC insured.  It is a great place to put emergency money.  It gives you flexibility, access to your money, and pays a higher rate than a traditional savings account. MMDA’s have a higher minimum and initial requirement than a traditional savings account.