In the search to compromise between a CD account and a checking account, bankers have created a very unique and useful type of hybrid between the two. The money market type of account is a type of savings account that requires a relatively high minimum balance and also pays a relatively high interest rate.
From the checking account side of the compromise, the money market account also allows a client to make anywhere from 3 to 6 withdrawals per month and/or write 3 to 6 checks on that account per month. This type of account offers a unique advantage in that it allows for a high interest rate and also allows a client to withdraw certain amounts of money without imposing a penalty on that client.
This flexible type of account has offered many people the opportunity to invest that otherwise might not have been able to. The fact that this type of account allows a good interest rate without denying a client complete access to his or her funds makes the money market account a good alternative for those that like the interest rates offered in a CD, but still wish to have a limited access to their deposited money.
- a market for short-term debt instruments http://wordnet.princeton.edu/perl/webwn
- In finance, the money market is the global financial market for short-term borrowing and lending. It provides short-term liquidity funding for the global financial system. ... http://en.wikipedia.org/wiki/Money_market
- A trading market for short-term securities, such as bills of exchange and promissory notes. http://wealth.net.nz/Wealth%20Glossary.htm
- That part of the capital market in which short-term financial obligations are bought and sold. These include treasury bills, banker’s ... http://www.finance.ualberta.ca/guide/topics/glossary/index.cfm
- Market for short -term debt securities with maturity of one year or less, and often 30 days or less. Highly liquid investments. http://www.wellsreitii.com/home/glossary.jsp
- Figurative expression for the informal network of dealers and investors over which short-term debt securities are purchased and sold. Money market securities generally are highly liquid securities that mature in less than one year, typically in less than ninety days. http://www.argmax.com/About/articles.php
- Money markets are for borrowing and lending money for three years or less. The securities in a money market can be USgovernment bonds, treasury bills and commercial paper from banks and companies. http://biz.yahoo.com/glossary/bfglosm.html
- The money market, in macroeconomics and international finance, refers to the equilibration of demand for a country's domestic money to its money supply. ... http://www-personal.umich.edu/~alandear/glossary/m.html
- The aggregation of buyers and sellers actively trading money market instruments. http://www.americanbanker.com/glossary.html
- A collective term for the many markets in which funds that are loaned for short periods to businesses or to governments are bought and sold. http://www.fsc.gi/consumer/bankingglossary.htm
- The market in which financial instruments with high liquidity and very short maturity are traded. http://www.citibank.com/bahrain/gcb/invest/glossary.htm
- A market consisting of financial institutions and dealers in money or credit who wish to either borrow or lend. http://www.fxcenterusa.com/us/learning-definitions.asp
- Generally means the vast array of financial products that earn interest (as opposed to capital gains or dividends) for the investor, although many variations of this type of investment exist. T-bills, most bonds, GIC's and the like would be characterized as money market investments. ... http://www.gov.mb.ca/agriculture/financial/farm/caf01s05.html
- The investment market in which large amounts of short-term funds are loaned and borrowed. http://www.cbtfinancial.com/clearfield/cms/program/content/65.php