The advantage of MMA lies in the fact that it offers competitive rate of interest, and there is no minimum deposit required for opening Money market accountPeople often misunderstood money market account with money market fund, these two are totally different; money market fund is an investment tool which earns higher returns in comparison to premium saving account.

The interest rate paid on this MMA is not fixed and it varies with market condition on weekly basis, but bank reserve the right to change the rate of interest at any time. Here the payment of interest will accrue on your daily balance. You can open your money market account at any bank and usually money of MMA is invested at low-level risk area like commercial deposits, T-bills etc. These are the areas where the money of MMA is invested on a general basis.

Money market account is getting popular because of its low risk nature, but there are certain limitations and one should know before opening the account. Money kept in MMA is lesser liquid in comparison to other saving account. There is no minimum balance needed for opening the account but you have to maintain a minimum balance to avoid monthly service charges. You can withdraw from your account as much money as you want but there are restrictions on number of times one can withdraw money from your money market account.

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