Money Market Deposit Account
Money market deposit accounts are government insured!
Tiered Interest Rates
The higher the account balance, the higher the interest rate!
If the average account balance falls below a specific amount, interest will decrease.
Interest for a money market deposit account depends upon the account balance. This is also known as tiered interest rates. Therefore, the higher the account balance, the higher the interest.
Some features of money market deposit accounts include....
- Customers usually are required to deposit a minimum amount to open an account (usually $1,000)
- If the average monthly balance falls below a specific amount, interest rates lower
- Money market deposit accounts have higher average return than checking and savings accounts