MMA stands for Money Market Account and it is a type of savings account that usually offers a higher interest. Although it does offer a higher interest rate, a higher minimum balance compared to a traditional savings account is required.
In a MMA, the FDIC or Federal Deposit Insurance Corporation insures the account. This means that the funds in the account are insured in case the bank goes bankrupt. This insurance corporation dates back to 1933, and was formed as a method of protecting the customers when banks fail. As we have seen in recent history, banks do fail on occasion. Continue reading ‘Personal Finance – What is Money Market Account?’ »